The Tesla Model X SUV has been named as the new-energy vehicle with the best value retention rate in China, according to a new survey. Meanwhile, the Model 3 sedan was recognized as the most valuable second-hand vehicle in the U.S, a study from iSeeCars said.
The China Automobile Dealers Association (CADA) released a survey that tested the value retention of new-energy vehicles. Any Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, or Fuel Cell Electric Vehicle is classified as a “new-energy vehicle,” according to the Chinese government.
The Model X 75D has the highest retention rating of any new-energy vehicle, the CADA survey revealed, holding 67.3% of its value when passed off to a second-hand owner.
Sina Automotive shared the study on their official Weibo account, stating:
“Recently, @中国汽车交通协会 released a report on China’s auto value preservation rate. In terms of new energy models, Tesla’s value preservation rate is still strong. Tesla Model X 75D ranked first in new energy second-hand value retention rate with 67.3%, and Volvo S60 plug-in hybrid value retention rate was at the bottom of 36.6%.”
Tesla electric vehicles tend to keep very high value retention rates compared to other battery-powered cars that are available to consumers. A recent study from iSeeCars, which was published by the automotive journal Car and Driver, indicated that the Tesla Model 3 was the biggest outlier in terms of EVs holding their value.
Electric cars tend to have higher depreciation rates compared to their gas-powered counterparts, losing around 52 percent of their value on average. Meanwhile, new, gas-powered sedans lose about 39 percent of their value. Pickups lose 34 percent.
The reason for the Model 3’s retention is demand and technology, a spokesperson for iSeeCars said.
“The Tesla Model 3 is still very much in high demand since it started production in 2017,” the spokesperson stated. “Even though it doesn’t present a bargain compared to its new-car price, it offers consumers a more affordable option for owning a Tesla.”
It is no secret that, of the available EVs in either the U.S. or Chinese markets, Tesla creates the most affordable vehicles with the best technology. There are cheaper options than the Model 3, even if a consumer is willing to buy a pre-owned car. However, those cars do not pack the range or technological developments that Tesla has.
Although the value retention of Tesla’s vehicles is higher, there is still an advantage to owning the company’s cars for buyers. Not only will that value retain itself while the new owner uses the vehicle, but it also shaves a few thousand dollars off of the price of a Tesla, making them slightly more affordable for those who are interested in driving a sustainable electric vehicle.
It proves that buying an electric car from the leader in EVs is undoubtedly a solid investment.