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Despite Tesla’s China Price Cuts, Interest In Second-Hand Model 3s And Model Ys Is Up

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Despite Tesla's China Price Cuts, Interest In Second-Hand Model 3s And Model Ys Is Up

(CTN News) – In China, Tesla’s price cuts are forcing some used-car dealers to lower their prices to find buyers. However, second-hand Tesla sales are expected to rise as budget-conscious consumers buy them.

There have been markdowns of up to 40,000 yuan (US$5,971) on Model 3s after Tesla started offering discounts of up to 13.5% on its electric vehicles (EVs) from its Shanghai Gigafactory.

Dealers who bought pre-owned Teslas before January 6 have been affected by the massive discounts on new cars, said Steve Shi, a manager with Juchen Auto Trade.

The drop in new car prices forced them to slash used car prices.”

In a weakening market for premium electric vehicles,

Tesla cut its prices for its made-in-China cars across the board on January 6.

A hefty 36,000 yuan reduction was added to the price of the entry-level Model 3 for 229,900 yuan, and a 10% slump was made for the basic Model Y for 259,900 yuan. In October last year, prices were reduced by up to 9.4 percent.

Due to a pandemic-ravaged economy in late 2022, middle-class mainland consumers began looking for cheaper cars.

In contrast, domestic carmakers like BYD, which mainly produce vehicles below 200,000 yuan, reported a sales surge, while Tesla and its Chinese competitors struggled to maintain market shares.

With buoyant sales on the mainland, Shenzhen-based BYD dethroned Tesla as the world’s largest EV maker last year.

The China Passenger Car Association reported delivered 29,387 Model Ys in December, down 44 percent month over month. Year-over-year, sales plunged 27.4%.

In November, 10,069 Model 3 sedans were produced, up 24.5% from 12,539 last month. The figure was 58.3 percent lower than the 30,102 units delivered in 2021.

The cost of a pre-owned Shanghai Model 3 can be reduced by at least 50,000 yuan. Second-hand Tesla sales are set to rise in the coming months, said Tian Maowei, a sales manager at Yiyou Auto Service.

When dealers buy used cars from existing owners [after Tesla’s price cuts], they have bargaining power. Demand for used cars at a discount is strong.

As a general rule, Tian said, his company usually deals with a few to five transactions regarding used Teslas every month, depending on the volume.

At least 20 customers have expressed an interest in owning second-hand Model 3s and Model Ys, he added, in the wake of the spike in inquiries about the availability of used last week.

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