SANTA MONICA, Calif. — July 29, 2015 — The used car market is giving Tesla the opportunity to expand its demographic and geographic reach, according to a new analysis from car-buying platform Edmunds.com. The analysis, which examined registration data of all 1600+ Tesla Model S vehicles that have ever been sold in the pre-owned market in the U.S., offers a glimpse at the potential for Tesla to expand its appeal beyond its base of wealthy, trend-setting customers.
For example, Edmunds found that while only 25 percent of new Model S buyers earned less than $100,000 per year, that number rises to 36 percent of all used Model S buyers. Edmunds also found that used Model S buyers skew younger than new Model S buyers: about 10 percent of pre-owned Model S buyers are Millennials (age 18-34), compared to just six percent of all new Model S buyers.
"The used Model S data proves that with a more attainable price tag, there is demand for the vehicle from a more diverse customer set," said Edmunds.com Director of Industry Analysis Jessica Caldwell. "A wide-ranging buyer base is essential for a brand like Tesla that hopes to grow with mainstream shoppers. These findings offer encouragement for Tesla as it prepares to make its biggest move into the mass market with the upcoming Model 3."
Tesla's brand migration in the used market is also reflected on a geographic level. California's share of used Model S sales, for example, is only 30.5 percent, compared to its overwhelming 42.5 percent share of all new Model S sales. Meanwhile, used Model S sales are surging in the state of Washington, where its market share of used Models Ss (8.9 percent) is nearly double its share of new Model Ss (4.6 percent). In fact, Edmunds' research found that in 2015 there have been more used Model S registrations in Seattle than in Tesla's home market of San Francisco.
Other states that enjoy a significantly larger share of used Teslas include Florida (11.2 percent of used Model S sales vs. 7.3 percent of new Model S sales), Texas (8.3 percent vs. 5.8 percent), New Jersey (5.5 percent vs. 3.3 percent) and Arizona (4.0 percent vs. 1.9 percent).
Top 10 States*
|Rank||State||Used||New||Difference (percentage pts)|
*Data for All Tesla Registrations Since Model S Debut
Source: Polk, Edmunds.com
"It's clear that the concentration of demand for Tesla is spreading beyond California's borders to other states on the secondary market," says Caldwell. "While it's not uncommon to see used luxury vehicles travel out of large flagship hubs, it is unusual to see it happen to this high of a degree."
Edmunds.com's full analysis of the used Tesla Model S market can be found at http://www.edmunds.com/industry-center/analysis/who-is-the-used-tesla-model-s-buyer.html.
About Edmunds.com, Inc.
Car-shopping website Edmunds.com serves nearly 18 million visitors each month. With Edmunds.com Price Promise®, shoppers can get an instant, upfront price for cars and trucks currently for sale at 10,000 dealer franchises across the U.S. Shoppers can browse not only dealer inventory, but also vehicle reviews, shopping tips, photos, videos and feature stories on both Edmunds' wired site and on its acclaimed mobile apps. Regarded as one of the best places to work in Southern California, Edmunds.com was also named one of "The World's Top 10 Most Innovative Companies of 2015 in Automotive" by Fast Company. Edmunds welcomes all car-shopping questions on its free Live Help Line at 1-855-782-4711 and email@example.com, via text at ED411 and on Twitter and Facebook. The company is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich., but you can find Edmunds from anywhere on YouTube, Pinterest, LinkedIn, Instagram, Google+ and Flipboard.