Younger buyers opt for used Teslas
Now that Teslas are starting to hit the used-car market, they show the potential to attract more younger, less affluent buyers and could expand the audience for the luxury electric-car maker, according to a recent study by Edmunds.com.
An analysis by car-buying site Edmunds.com looked at the registration data of all Tesla Model S vehicles sold in the U.S., It found more middle-class and young buyers are opting for used ones.
The study showed that you don't have to be rich to be driving a Tesla, the breakthrough electric luxury car that usually starts new at about $70,000.
The analysis shows 36% of all used Model S buyers earned less than $100,000 per year, while only 25% buyers who bought a new model fit in the same category. The Model S sedan, the only product that Tesla is currently delivering, hit the market in 2012 so it is relatively new in the used-car market. Tesla's only previous car was the two-seat electric Roadster.
Edmunds analyst Jessica Caldwell says this shows the company is beginning to expand sales beyond entertainment moguls and Silicon Valley executives.
"What we're seeing is that it's a lot more diverse than the new car population and the new car buyer," Caldwell says.
About 10% of all pre-owned Model S buyers are to those ages 18 to 34. This is a stark increase compared to the 6% of all new Model S buyers in the same age range.
"I think Millennials are interested in the technology, in the company, in Elon Musk," Caldwell says. "The Model S, for what is it is, it's really practical. I think that it's something that's inspirational for people."
Tesla sales are also spreading past the West Coast, according to analysis. Several states, including Florida, Washington, Texas, and Arizona, saw significantly more used Model S vehicles sold, compared to sales for the same model sold new.
"I think the fact that you are seeing Model S in a more diverse area is a promising sign," Caldwell says. "It's spreading across the nation."
California remains the highest in Tesla sales, home to 45.2% of new Model S buyers and 30.5% of used vehicle buyers.