Tesla Allows Cybertruck Owners to Trade In Vehicles Amid Significant Depreciation
Tesla has recently opened the door for Cybertruck owners to trade in their vehicles for the first time since their launch. However, those looking to make this move will face substantial financial losses, as current depreciation rates for the Cybertruck are notably steep.
High Depreciation Rates Reported
According to CarGurus, depreciation rates on the Cybertruck could reach as high as 45%. In a comprehensive analysis by Business Insider, two Cybertruck owners disclosed the trade-in values assigned by Tesla. One owner of a 2024 all-wheel-drive model purchased for $100,000, who has driven 19,623 miles, received a trade-in offer of $63,100, representing a 37% depreciation. Another owner, who acquired the elite $127,000 Cyberbeast last September, was offered $78,200—a significant 38% drop in market value after just eight months of ownership.
Background on Tesla’s Trade-In Policy
Previously, Tesla had prohibited Cybertruck owners from selling their vehicles, a practice often implemented to curb the reselling of high-demand vehicles and ensure brand integrity. In Tesla’s situation, this ban may also have postponed trade-ins and resales. This delay could be attributed to several factors, including backlash related to CEO Elon Musk‘s associations during the Trump administration and ongoing quality control concerns. These concerns have included issues like runaway gas pedals and detaching trim pieces, which have further complicated ownership experiences.
Trade-In Values vs. Private Sales
It is crucial to highlight that trade-in valuations typically fall short compared to private-party sales. In general, electric vehicles (EVs) are known for rapid depreciation. A report by Wired indicates that some automotive brands can depreciate by as much as 50% within the first year alone, highlighting the challenges faced by EV owners when attempting to sell their vehicles in a fluctuating market.
In summary, while Tesla’s decision to allow Cybertruck trade-ins is a notable shift, the associated financial impacts have raised alarm bells among current owners. As the market continues to evolve, potential buyers and sellers alike should stay informed about these trends and their implications for vehicle value.
