January 31, 2023

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Used Car Prices: I think many new electric cars will be cheaper now

When Tesla slashed the prices of its Model Y by up to NOK 120,000 last week, it hit the market like a bomb. The Tesla Model Y was the best-selling car model in Norway in 2022, and the sharp drop in prices indicates that Tesla has plans to continue record sales of this model.

In the turbulent and unpredictable auto industry, this price cut has created more uncertainty. This is confirmed by General Manager Christian Melchior at the used car dealership Rebil.

They have established themselves as a major player in the industry in a short time and have, among other things, the large Møller group on the ownership side.

– It affects everything. We immediately reduced the prices of our cars by a total of 1.8m out of a stock of about 50m, Melchior told Broom.

New situation: Reducing the price up to NOK 120,000 for a Tesla best seller creates a new situation also in the used market. Photo: Tesla

It affects other actors

When the news of Tesla’s price cut got out, it probably didn’t take more than ten minutes for everyone interested in the Model Y to get it, he adds.

– What about other players in the market?

– This, of course, also affects others other than Tesla. If the price of the most popular model on the market suddenly drops by more than NOK 100,000, it also affects other players.

How big is this effect?

– Newer used electric cars that we think will see prices drop approx. 10 percent, a little more for the Model Y and maybe a little less for cars like the Nissan Leaf and a few others.

Difficult: - It can be difficult for many attackers, says Christian Melchior.  Photo: Frank Wilkesen

Difficult: – It can be difficult for many attackers, says Christian Melchior. Photo: Frank Wilkesen

The unexpected year of the car

– This is the immediate effect, but what will happen in the future?

– Potentially difficult for some of the smaller used car dealers. It’s been a tough autumn already, and with more price drops to come, it won’t get any easier, says Christian Melchior.

He also believes new-car competitors should respond to Tesla’s challenge with Model Y prices.

– Yes, when the price of the most popular model is cut so much, others have to respond. I wouldn’t be surprised if there are price adjustments and bigger campaigns from other players. In short, we’re in for an unpredictable car year.

These cars are the most severely punished in the state budget for the year 2023.

Sad situation

– And what about customers in all this?

– For those who want to buy Model Y in the future, this affects the wallet positively, at a time of expensive electricity and high prices for most things and an increase in interest rates. But one wonders what those who bought a Tesla Model Y in December thought – there are probably many who are not happy with the development.

– People who have bought an expensive car and have suffered this drop in price are of course in a somewhat unfortunate situation. Not to mention those who have bought cars so they can sell them above the new car price to customers who can’t afford to wait for delivery issues. Cars are important to people, not least in a country like Norway. Then it remains to be seen whether Tesla’s move is correct and actually reflects what the model in question should cost, says Christian Melchior.

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Video: This is a big seller among used electric cars

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