C Car Depreciation
Tesla · sedan · premium

Tesla Model 3 Depreciation Calculator

Calculate the Tesla Model 3 depreciation rate by year, mileage, and country — with accident-history adjustments and a year-by-year depreciation chart.

The Tesla Model 3 is the best-selling electric sedan globally, offering strong range, OTA updates, and access to the Supercharger network. Depreciation has been volatile due to Tesla's frequent MSRP cuts, but the refreshed 'Highland' generation and improving used-EV demand have stabilized retained value compared to the 2022–2023 drop.

1-year depreciation
22%
5-year retention
47%
MSRP
$38,990–$55k
Avg mi / year
12,000

Depreciation inputs

Depreciation during your 5-year ownership
$24,905
-53%
Value at purchase
$46,990
Brand new
Value when you sell
$22,085
5y / 60,000 mi
Depreciation / year
$4,981
Depreciation / mi
$0.42
Highland
1st generation refresh · started 2024

Current generation — no successor has launched yet.

Depreciation curve · your ownership window

BuySell

Year-by-year depreciation

Depreciation rate per year, based on an MSRP of $46,990

Age Value % Retained Annual depreciation
New $46,990 100%
Year 1 $36,652 78% -$10,338 (22%)
Year 2 $31,953 68% -$4,699 (12.8%)
Year 3 $28,194 60% -$3,759 (11.8%)
Year 4 $24,905 53% -$3,289 (11.7%)
Year 5 $22,085 47% -$2,820 (11.3%)
Year 6 $19,736 42% -$2,349 (10.6%)
Year 7 $17,386 37% -$2,350 (11.9%)
Year 8 $15,507 33% -$1,879 (10.8%)
Year 9 $13,627 29% -$1,880 (12.1%)
Year 10 $11,748 25% -$1,879 (13.8%)

Tesla Model 3 depreciation by country

The same car depreciates at different rates in different markets. Here's how the Tesla Model 3 depreciation rate changes across the seven major markets we track.

🇺🇸
United States
Baseline

Baseline market. The Model 3 faced steep depreciation in 2022–2023 due to repeated MSRP cuts and the $7,500 used EV tax credit reshaping used prices. Retention has stabilized with the Highland refresh.

Currency: USD Unit: mi
🇨🇦
Canada
-4% retention

Strong demand in BC, Quebec, and Ontario where provincial EV rebates apply. Cold-weather range concerns soften winter resale slightly, but Supercharger access keeps values firmer than most EV rivals.

Currency: CAD Unit: km
🇬🇧
United Kingdom
-8% retention

Popular as a company car due to favorable BIK tax rates, which props up 3-year resale. Post-lease volume has pushed 2021–2022 used prices down sharply, though Highland models are holding better.

Currency: GBP Unit: mi
🇪🇺
Europe
-6% retention

Strong in Norway, Netherlands, and Germany where EV incentives and charging networks are mature. Depreciation is moderate but faces growing pressure from BYD, BMW i4, and Polestar 2 competition.

Currency: EUR Unit: km
🇸🇦
Saudi Arabia
-18% retention

Tesla only officially entered Saudi Arabia in 2024, so earlier grey-market Model 3s depreciate quickly due to limited service support. Heat impact on battery longevity is a buyer concern.

Currency: SAR Unit: km
🇮🇳
India
-22% retention

No official Tesla presence until recently, and import duties push prices extremely high. Charging infrastructure gaps and battery service uncertainty cause steep depreciation on imported units.

Currency: INR Unit: km
🇦🇺
Australia
-2% retention

Model 3 is Australia's best-selling EV and holds value well thanks to limited EV competition and strong Supercharger coverage. Long Range AWD trims retain noticeably better than base RWD.

Currency: AUD Unit: km

Tesla Model 3 depreciation after an accident

An accident on a vehicle's history permanently increases its depreciation rate, even after perfect repairs. Here's how much extra depreciation each severity level adds to a Tesla Model 3.

Minor accident
+9% depreciation

Paintwork, bumper scuffs, non-structural repairs. Disclosed on history reports but limited resale impact.

Moderate accident
+20% depreciation

Panel replacement, airbag deployment, meaningful CARFAX entry. Significantly accelerates depreciation.

Major accident
+35% depreciation

Frame damage, flood, salvage title. Permanent depreciation hit even after full restoration.

This "diminished value" is the extra depreciation a car carries after an accident. Insurance rarely reimburses it — our calculator bakes it into every depreciation estimate.

Tesla Model 3 FAQ

How much does a Tesla Model 3 depreciate per year?
A Tesla Model 3 typically depreciates about 22% in the first year and 8–10% each year thereafter. After 5 years, it retains around 47% of its original MSRP, which is slightly below the premium sedan average due to Tesla's frequent price cuts. Highland (2024+) models are depreciating more slowly as pricing has stabilized.
Why did the Tesla Model 3 depreciate so fast in 2023?
Tesla cut new Model 3 prices by up to $13,000 across 2022–2023 to boost demand and qualify for the US EV tax credit. Since used car values track new prices, this dragged resale values down by 20–30% in a single year — an unusually steep depreciation curve. The market has since normalized.
What is a Tesla Model 3 worth after 5 years?
A Model 3 Long Range purchased new for around $48,000 will typically be worth $22,000–$24,000 after 5 years and 60,000 miles. Performance trims retain slightly more in absolute dollars, while base RWD trims lose the most percentage-wise.
Does battery health affect Model 3 depreciation?
Yes, but less than many buyers fear. Most Model 3 batteries retain 85–90% capacity at 100,000 miles, and Tesla's 8-year/120,000-mile battery warranty reassures buyers. Vehicles with documented battery degradation below 80% can see an additional 10–15% value hit.
Is the Model 3 Performance worth it for resale?
The Performance trim costs about 20% more than the Long Range AWD but retains roughly 3% more of its value at the 5-year mark. Enthusiast demand and its halo status in the lineup keep used Performance models in demand, though insurance and tire costs partially offset the resale advantage.

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