NewsGlobalTesla Model Y Owner Warns of Severe Depreciation, Calls Purchase 'Worst Financial Decision'Tesla Model Y Owner Warns of Severe Depreciation, Calls Purchase 'Worst Financial Decision'
A Tesla Model Y owner shared her regret over purchasing the electric vehicle, citing rapid depreciation as the main concern. The owner paid between $40,000 and $50,000 for the car but now faces negative equity and monthly payments exceeding the car's current market value. Kelley Blue Book data projects a total 5-year ownership cost of $69,235 for the Model Y, with expected depreciation of $32,580 and a residual value of $12,050 after 5 years. Despite financial concerns, the owner acknowledged positive features such as home charging and impressive acceleration. She advises potential buyers to consider leasing or purchasing a second-hand Tesla. This individual experience comes amid broader challenges for Tesla in the European market, with significant declines in registrations across several countries.
*this image is generated using AI for illustrative purposes only.
A Tesla Model Y owner has taken to social media to share her regret over purchasing the electric vehicle, citing rapid depreciation as the primary concern. The owner, identified as Nejra on TikTok, described buying a brand-new Tesla Model Y as her "worst financial decision."
Financial Impact
Nejra reportedly paid between $40,000 and $50,000 for her Tesla Model Y, according to Car and Driver pricing. However, she now finds herself in a challenging financial situation:
- The vehicle has experienced severe depreciation since purchase
- Monthly installments exceed the car's current market value
- Negative equity from a previous car loan compounds the financial strain
Projected Costs and Depreciation
Data from Kelley Blue Book paints a sobering picture for Tesla Model Y owners:
| Category | Amount |
|---|---|
| Projected total ownership costs (5 years) | $69,235.00 |
| Expected depreciation | $32,580.00 |
| Residual value after 5 years | $12,050.00 |
These figures suggest that the Model Y could lose nearly three-quarters of its value over a five-year period, supporting Nejra's concerns about rapid depreciation.
Positive Features Amid Financial Concerns
Despite her financial regrets, Nejra acknowledged several positive aspects of Tesla Model Y ownership:
- Home charging capability
- Side cameras for improved visibility
- Impressive acceleration (0 to 60 mph in three seconds)
Advice for Potential Buyers
Based on her experience, Nejra advises potential Tesla customers to consider alternatives:
- Leasing a Tesla instead of purchasing
- Buying a second-hand Tesla to mitigate the initial depreciation hit
Tesla's European Market Challenges
The individual owner's experience comes against a backdrop of broader challenges for Tesla in the European market. Tesla faced significant declines in registrations across several European countries:
- France: 47.3% decrease
- Sweden: 84% decrease
- Netherlands: 50% decrease
- Denmark: 42% decrease
These declines are attributed to increased competition from Chinese manufacturer BYD and traditional automakers entering the electric vehicle market.
The combination of individual owner experiences and broader market trends highlights the complex landscape Tesla navigates as it seeks to maintain its position in the competitive electric vehicle market. Potential buyers are advised to carefully consider the long-term financial implications of their purchase decisions in light of these factors.
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