Buying a Tesla in Canada: Should You Buy A New or Used Tesla?

Buying a Tesla in Canada: Should You Buy A New or Used Tesla

Buying a Tesla, whether new or used, can be an exciting and rewarding experience. Tesla electric vehicles are known for their cutting-edge technology, performance, and sustainability. If you’re considering buying a Tesla in Canada, one of the key decisions you’ll face is whether to buy a new model or buying a used Tesla. 

Known as innovative electric vehicles, Tesla EVs offer both new and pre-owned options that come with their own set of advantages and considerations. This article aims to explore the factors to consider when choosing between a new or used Tesla in Canada, enabling you to make an informed decision.

Factors to Consider When Choosing Between New and Used Tesla

To make an informed decision, consider the following factors:

Budget: Assess your budget and determine how much you can comfortably spend on a Tesla. This will help you narrow down whether a new or used Tesla aligns better with your financial goals.

Features and Technology: Consider the importance of having the latest features and technology. If you value having the most advanced capabilities and are willing to pay a premium for them, a new Tesla might be the right choice for you.

Long-Term Ownership: If you plan to keep your Tesla for an extended period, a new model might be preferable. New Teslas generally come with longer warranties and the assurance of driving a vehicle from its early life stages.

Availability and Preferences: Evaluate the availability of used Teslas in your area and determine if the options meet your preferences in terms of model, mileage, age, and condition. Be prepared to be flexible and patient during your search.

Government Incentives: The Canadian government’s Incentives for Zero-Emission Vehicles Program (iZEV) provides incentives of $5,000 for purchasing new electric vehicles. While the iZEV program does not cover used electric vehicles, various provincial incentives are available depending on your location. While some incentives extend to used EVs, most are applicable only to brand-new ones. For example, in Ontario, Plug ‘N Drive, a non-profit organization, offers up to $2,000 in rebates for used fully electric vehicle purchases when combined with a scrappage incentive. Research and find out the specific incentives available to you before making your decision.

Buying a Tesla in Canada: New Vs Used Pricing

Now let’s dive into the world of new and used Teslas and compare their prices. We’ll focus on the four models currently produced by Tesla: Model S, Model X, Model 3, and Model Y. 

Model 3

A new Tesla Model 3 Standard Range (RWD) starts at $54,990, with options that can raise the price up to $64,990. For the Model 3 Performance, the price ranges from $68,990 to $76,990, depending on the options.

If you want all the bells and whistles, a fully loaded Model 3 Long Range will cost you $64,990, including features like Full Self-Driving (FSD), 19″ Sport Wheels, Red Multi-Coat Paint, a Black and White interior, and both wall and mobile connectors.

As for a used Tesla Model 3, you can find used Model 3s priced between $38,000 and $55,000, with the average for newer model years (2020-2022) falling between $36,000 and $45,000. While the price difference between used and new Teslas may not seem significant, it’s important to note that these prices are changing. 

Model Y

For the base 2023 Model Y, the starting price is $59,990, while the maximum price reaches $75,990 when including features like Full Self-Driving (FSD) and a tow hitch. The 2023 Model Y Long Range starts at $69,990, with options going up to $75,990, which includes the exclusive $5,000 7-seat option only available on the Model Y Long Range. As for the 2023 Model Y Performance, prices start at $59,990 and can go up to $79,480 with additional options.

When it comes to used Model Y prices, they typically range from $45,000 to $75,000. The average price for newer Model Y vehicles hovers around $60,000. Since the Model Y has only been available for a few years, its prices are not as affected by age and warranty considerations, and they have remained relatively high. However, that may change soon, as mentioned in the pricing discussion for the Model 3.

Model S

If you’re interested in a brand-new Model S, straight from the configurator, prices start at around $122,990. The price can go up to $169,990 for the Plaid if you opt for additional features.

When it comes to used Tesla Model S prices, they vary widely, ranging from $45,000 to $140,000. The price depends on factors such as the year and build of the vehicle. Since the Model S was one of the first cars produced by Tesla, you can find some at lower prices, but they may come with older battery packs and higher mileage.

Typically, you can find recent-year Model S vehicles with recent technology and low mileage on the used market for under $90,000, with some listed between $70,000 and $85,000. With recent price cuts, we expect these numbers to drop further throughout 2023, so it’s worth checking listings frequently. Based on price alone, opting for a used Model S instead of a new one seems like a sensible choice.

Model X

The base price of a new Tesla Model X is currently $130,990, with options that can raise it up to $149,990. For the Model X Plaid, the starting price is $143,990, with options going up to $159,990.

Used Model X prices can vary quite a bit due to the vehicle’s several model years. You can find them ranging from $60,000 to $140,000. For recent model years, the average price falls between $90,000 and $120,000. However, with Tesla’s recent pricing changes and sellers adjusting their prices to compete, we expect used Model X prices to drop significantly in the coming months.

Considering the upcoming price changes for used Model X vehicles, you can save $15,000 or more by choosing a used one over a new one. Older Model X vehicles also have additional value due to the potential for Full Self-Driving (FSD) capabilities and transferable free supercharging, but we’ll discuss those later.

The Benefits of Buying a New Tesla

Investing in a new Tesla offers several advantages that may appeal to certain buyers:

Latest Features and Technology: New Tesla models come with the latest advancements in electric vehicle technology. You’ll have access to cutting-edge features, enhanced performance capabilities, and improvements in range and charging speed.

Customization Options: Buying a new Tesla allows you to customize your vehicle according to your preferences. You can choose the exterior color, interior finishes, and select from a range of available options and upgrades.

Manufacturer Warranty: New Teslas come with a comprehensive manufacturer warranty that provides coverage for a specified period. This warranty offers peace of mind and protection against any potential manufacturing defects or issues.

The Advantages of Buying a Used Tesla

Opting for a used Tesla also brings several benefits that may suit your preferences and budget:

Lower Cost: The primary advantage of buying a used Tesla is the lower upfront cost compared to a new model. Used Teslas are generally priced lower compared to new models, making them more affordable for many buyers. This lower upfront cost can help you save a significant amount of money.

Reduced Depreciation: Like any other vehicle, including Teslas, new cars experience substantial depreciation in their first few years. By buying a used Tesla, you let the original owner absorb the initial depreciation, resulting in a slower rate of depreciation during your ownership.

Wider Selection: Buying a used Tesla offers a broader selection of models and features with a small budget. You may find discontinued options or unique configurations that are no longer available for new Teslas.

Improved Affordability: Used Teslas often have lower insurance premiums compared to new ones. Additionally, maintenance and repair costs might be more manageable due to the availability of third-party repair shops and affordable aftermarket parts.

Factors to Consider When Buying a Used Tesla

Before finalizing your purchase, it’s crucial to consider certain factors to ensure you make an informed decision.

Age and Mileage: The age and mileage of a used Tesla play a significant role in determining its condition and potential longevity. A well-maintained Tesla with lower mileage is generally preferable.

Battery Health: Teslas are powered by advanced electric battery technology. When buying a used Tesla, it’s essential to assess the battery’s health and understand its remaining capacity and warranty coverage.

Warranty Coverage: Check whether the used Tesla you’re interested in is still covered under the original warranty or if there are any extended warranty options available. Warranty coverage can provide peace of mind and protection against unexpected repairs.

Service History: Review the service history of the used Tesla to ensure it has been properly maintained and serviced at authorized Tesla service centers. A well-documented service history indicates that the vehicle has received regular maintenance and care.

When deciding whether to buy a new or used Tesla, it’s important to consider your unique circumstances, preferences, and budget. One crucial factor in this decision is your overall budget and requirements. Opting for a new Tesla can come with benefits such as qualifying for the full $50,000 EV incentives on certain models, as well as taking advantage of recent price reductions. However, it’s worth noting that new models are generally more expensive than used Tesla models. Ultimately, the buyer needs to assess what their budget allows for. For Canadian car shoppers interested in buying a used Tesla, it is advisable to monitor the inventory levels and prices available directly from the company, EV dealerships or through used marketplaces. This way, you can find the right used Tesla that meets your needs. Prioritizing your requirements, conducting thorough research, and considering the factors discussed will help you make the best choice when purchasing a Tesla.

As always, Carnex can provide you with detailed information about buying and owning electric vehicles in Canada.

Carnex is the top online EV expert in Canada for buying and selling electric vehicles.

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