On Friday morning, the sky fell on quite a few Tesla owners in Israel, when the manufacturer announced the new prices of the Model 3 and Model Y models in Israel, following the manufacturer’s global wave of discounts.
Reminder: the price of the basic Model 3 has been reduced by NIS 37,000 to NIS 205,000, and the price of the Model Y Long Range, the current basic version of the model in Israel, has dropped sharply by NIS 65,000 to NIS 270,000. The prices of the other versions of the two models also dropped accordingly.
The move shocked many Tesla owners, who were used to seeing the manufacturer’s prices go up and up, “improving” the value of their car, but one morning they discovered a very big hole in its value. Although no one has yet paid the most expensive prices, the first cars that were supposed to be sold for NIS 242,000 will arrive only in March, and the buyers have not yet paid for them more than the reservation fee of NIS 500. But paying NIS 225,000 in December for a Model 3 and seeing its new price drop by NIS 20,000 after two weeks is neither pleasant nor acceptable in the Israeli car market, where importers are wary of reducing list prices for fear of damaging the value of used cars.
Not all complainers understand the broader implications of the move. The first is the fact that the person who bought the car at a high price not only paid more, but will also pay more if he took a loan to make the deal. The second meaning is that if this price reduction leads to an increase in demand for the manufacturer’s models, the service and spare parts system, which is already stretched to the limit, will have even more difficulty in responding to the company’s customers. On the fringes are also the leasing companies who purchased cars based on that future value preservation and discovered that the several hundred cars they rushed to purchase at any price are now worth much less.
But what did this move do to the prices of Tesla’s cars in the Yad2 panel? As of this morning, about 360 Tesla Model 3 cars and 39 Model Y cars are advertised on Yad2. Filtering the ads without a price (the initial filter – ads without a price are not worthy of consideration and are suspected of fraud) there are 322 Model 3s and 33 Model Y cars Y.
What is more interesting is their price fluctuations, and the clear conclusion is a clear reduction in prices by 10-25 thousand shekels following the news discount. What most price updates have in common is the date. Don’t believe in superstitions? Some Tesla sellers will remember this Friday the 13th for a long time.
For example, we found a Model 3 Long Range Model 2022 that went from a price of NIS 299,000 on January 5 to NIS 279,000 on Friday the 13th. Another long range from the 2021 model with only 31 thousand km dropped that Friday from NIS 225 thousand to NIS 210 thousand.
On the other hand, there are quite a few Tesla owners who have not really internalized the new rules in the market, for example with an SR+ one from the 2021 model with 40,000 km that even after the 13.1 is asking for 187,000 shekels, this is when a new one will now cost 205,000 shekels. By the way The price of this car has changed 19 (!) times since it first appeared on 21.12.
And those looking for a performance bomb at the price of a used Golf GTI – Performance from 2021 with 23,000 km dropped from NIS 239,000 to NIS 215,000 on the same day.
As a rule, the board is “painted green” as they say in the used industry – with sweeping price drops, very happy news if you are on the side of the buyers of course. And the situation is no different even when you look at the prices of the Y model that are published on the board. Out of 33 ads that are published as of today, only 3 have a higher price than the initial one in which they were published, only 9 of them are unchanged and all the rest are in decline, some free, some moderate.
One of the descents without a parachute, the Long Range model started rolling on the board on 3.1 at a price of 324,900 NIS, dropped to 321,800 NIS on 11.1 and as of 13.1 the price was updated to 269,500 NIS. Those who take the decline less seriously are asking for “only” 30 thousand shekels like another long range that went up to the board 10 days ago for 360 thousand shekels and as of last Friday they are asking for 320 thousand shekels.
And the bottom lines, for those who have had a strong desire for a Tesla since last Friday and want to take advantage of the momentum, as of today, Model 3 prices on the used board start at NIS 168,000 for a Model 3 Long Range 2022 model with 20,000 km that “must be sold urgently!!” As the ad article.
A very good amount of cars are offered in the price range of NIS 170-185 thousand before bargaining, mainly SR+ models and the standard that replaced it, also long range models that are about a year and a half old. At the upper end of the scale, optimistic with Model 3 Long Range Model 21 with 65 thousand km for NIS 325 thousand. And Performance with only 1,700 km from 2022 for NIS 320 thousand.
In the case of the Model Y, you can find those at prices starting at NIS 267,000 for the long range whose price was updated today, it has only 81 km and it started selling on January 4th for NIS 330,000. At the other end of the scale – Model Y A performance for which they are asking 415 thousand shekels.