Tesla Model Y to put pressure on Model 3 resale prices: Redbook

Bulletproof resale values of the Tesla Model 3 could come under pressure from the arrival of the Tesla Model Y electric SUV.

That’s the forecast from Redbook, the unofficial bible on used car values in Australia.

The general manager of Redbook.com.au, Ross Booth, told EV Central that the Model Y was shaping up to make a significant impact on the electric car market – when it eventually arrives, which for now is a big unknown.

UPDATE: Tesla Model Y pricing and details confirmed for Australia

Expected on sale by now, the Tesla Model Y has been certified for sale in Australia but still can’t be ordered on the EV brand’s Australian website. Instead, buyers can log their email address for updates.

Booth says the pent-up demand for the Model Y will likely make it hot property on the used car market when it eventually arrives here.

“One of the best performing vehicles in the Australian market that hold their value is the Tesla Model 3,” says Booth, who adds that could be shortlived.

READ MORE: Tesla Model Y Australia: Everything we know ahead of the electric SUV’s launch
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“We actually see that coming off … because of the new vehicles that are coming, in particular the Model Y, which will take sales away – in our opinion – from the Model 3, because it’s going to provide more of what customers want, which is more of an SUV than a sedan.”

Booth says he doesn’t expect the value of Model 3s to dive – far from it. He’s still anticipating a strong showing from the car that many are currently trying to sell for more than the price they paid for them.

But he believes the Model Y will be more appealing, in turn reducing used vehicle demand for the Model 3.

There is one thing in the favour of all Teslas: technology and regular over-the-air software updates, which can add new functions and tweak the vehicle.

“Tesla is slightly different from other automotive companies … because they’re perceived differently,” says Booth. “They really are seen as a technology company [with] very, very strong demand.”

The Model Y is effectively the SUV spinoff of the Model 3. It uses the same basic architecture of the Model 3 and its dash layout and features are almost identical.

But the Model Y is longer, wider and taller than the 3 for more of an SUV stance.

While it’s available as a seven-seater overseas, the Model Y has only been certified for Australian sales with five seats (something that could change over time).

As for forecast resale values of other EVs in Australia (the 40-odd-percent sold that aren’t Teslas), Booth says the electric car market appears split in two.

He describes one EV market segment as being more luxury and tech focused, nominating cars such as the Tesla Model 3, Polestar 2, Hyundai Ioniq 5 and Kia EV6, as well as the models from luxury brands such as BMW, Audi and Mercedes-Benz.

The more affordable models – many of which are based on the underpinnings of internal combustion engine cars, rather than starting from a clean sheet – as the “green tier”. He says they tend to be EVs at the more affordable end of the market and include the Nissan Leaf, Kia Niro Electric and Hyundai Kona Electric.

It’s the more desirable – and more expensive – technology-focused EVs that are performing stronger on the used car market.

“These vehicles also tend to have much higher residual values than the second tier, which is more the green tier … the tool of trade [vehicles],” says Booth.

All of which could mean some EV bargains in future – at least once the market cools from its current highs.