Tesla holds its value in used-car market, with some listings topping W100m

Tesla, which stormed South Korea's new-car market in the first half of the year, is now making its presence felt in the used-car segment as well — holding its value better than rival brands. Contrary to the widespread perception that electric vehicles depreciate faster than combustion-engine cars, Tesla posted a smaller price decline than major automakers.

Particularly notable is the emergence of used Tesla listings priced above new-car levels, driven by the rollout of Full Self-Driving V14 Lite — Tesla's autonomous driving feature — to select older models.

According to K Car, South Korea's largest direct used-car platform, Tesla recorded a smaller price decline between January and June than other major brands. Tesla's used-car prices fell just 3.0 percent over that period, while Hyundai Motor dropped 4.1 percent and Kia fell 6.7 percent. Imported brands fared even worse — Mercedes-Benz slid 9.5 percent and BMW 9.7 percent, both steeper declines than Tesla.

K Car said domestic used cars typically lose around 10 percent of their value annually, while imported models shed about 15 percent. Against that backdrop, Tesla's performance stands out as a clear case of value retention, and Hyundai Motor also showed relatively modest depreciation.

Monthly price movements were equally stable. Prices edged down 1.2 percent in February and 1.6 percent in March, but held flat in January, April and May. June saw only a 0.2 percent dip, leaving prices in effect unchanged. Used-car prices typically fall 1 to 1.5 percent each month.

A K Car official said prices softened slightly in February and March due to dampened consumer sentiment from the war in the Middle East and the price cuts Tesla applied to the Model 3 and Model Y late last year. "The fact that prices have held broadly flat can be read as a sign that demand has grown correspondingly," the official said.

FSD has recently emerged as a new variable pushing used Tesla prices higher. Tesla announced it would roll out FSD V14 Lite to the Model 3 and Model Y produced in the United States. The V14 Lite version is optimized to run on the older HW3 autonomous driving computer, not just the latest HW4 hardware. As a result, FSD is now available not only on premium models such as the Model S, Model X and Cybertruck, but also on mid- and lower-range vehicles.

Model 3 and Model Y units currently sold in South Korea are manufactured at Tesla's Shanghai factory in China, but US-made versions were sold here in the past. The Model 3 first launched in Korea as a US-made vehicle in 2019, followed by the Model Y in 2021; production was gradually shifted to Chinese-made units starting in 2023 for the Model Y and 2024 for the Model 3.

As a result, premiums are building on some US-made used Teslas, pushing asking prices well above new-car levels. On Encar, a major used-car trading platform, a 2022 Model Y Long Range AWD is listed at prices ranging from 99.99 million won ($67,200) to 111.11 million won — far above the current new-car price of 66.99 million won for the same model.

Interest in US-made used Teslas is also growing in online communities, with FSD eligibility cited as the key reason. One user wrote that after buying a new Model Y, they discovered it was Chinese-made and were now uncertain when they would be able to use FSD. "Since FSD was the biggest reason I bought the car, I'm considering selling the new one and buying an older US-made model," the user said.

However, analysts caution that the full impact of FSD on used-car prices remains to be seen. An industry official said it would take a month or two to gauge how FSD eligibility affects the used-car market. "For now, we are seeing early signs of change, with some unusually high-priced listings appearing in the market," the official said.