Your questions answered: Should I buy a second-hand Tesla?

Elon Musk might have caused a storm in Australia this week over the content he allows on X (Twitter), but there are plenty of people still looking to buy a Tesla – including one reader considering a second-hand Tesla Model 3 or Model Y that a P-plater can drive.

Another reader is wondering why Tesla is so trigger-happy on price adjustments. It’s a pertinent question given the $3000 price drop to the Model 3 this week.

We’ve also got a reader looking to make the EV leap from a mid-size SUV, and a couple of others challenging us with the search for affordable compact SUVs that are also fuel-efficient.

Question:

Answer: Teslas haven’t depreciated as rapidly as some rivals because there’s still healthy demand for them as used cars. That said, two recent price reductions for new ones will ultimately flow through to the used car market.

Throw in natural depreciation from their lofty heights of a year or two ago and it’s not a bad time to buy.

In terms of which one to get, look at Rear-Wheel Drive versions of the Model 3 and Model Y, both of which are approved for P-plate use. The Model 3 should be more affordable – and prices will likely come off a bit more in coming weeks as sellers realise this week’s $3000 price drop has worked against them on used ones.

Each RWD model also gets an LFP battery pack that is generally expected to have better longevity than the more common NMC batteries.

If you can benefit from the government’s fringe benefits tax (FBT) exemption (speak to your accountant) then look to buy one that was first registered after July 1, 2022. It’s a great way to package a car into your pre-tax income without paying any FBT.

Question:

Answer: Reliability is probably the best part of the new 2024 Toyota bZ4X, at least going off Toyota’s reputation for longevity and a lack of problems.

However, it struggles in terms of value against key rivals, the most serious of which is the Tesla Model Y. The Model Y is around $5500 cheaper than the bZ4X and has more space, better performance, better range, better efficiency, more tech and more features. You can also charge it in more places than the Toyota.

What the Tesla doesn’t have is the reputation for reliability, in part because the company hasn’t been around as long.

But, if you’re sold on the Toyota, also have a look at the Subaru Solterra, which is essentially identical to the bZ4X other than its badge. The Subaru is only available as dual-motor versions versus single-motor and dual-motor options in the Toyota. But the pair drive identically, albeit with some different features, including a flat-topped steering wheel in the Solterra that makes it easier to see the instrument cluster.

It could also be worth waiting for the Kia EV5, which is shaping up to be a solid contender for the Tesla. It’s expected around July.

Question:

Answer: The 1.8-litre engine in the original Toyota Corolla Hybrid had an engine code 2ZR-FXE and was also used in various iterations of the Toyota Prius as well as later versions of the Corolla Hybrid. In many instances it was rated to run on 91RON regular unleaded.

Often damage due to running on lower-octane fuel occurs in the emissions hardware (including the exhaust system) due to the potential for higher sulphur levels in regular unleaded. But we’re not aware of your Corolla Hybrid having issues with that – and it seems Toyota thinks the same.

But you will almost certainly use slightly more fuel, partially negating some of the fuel savings.

Question: My mother is looking to get a car that is easier for her to get in and out of as she’s older and has bad knees. Requirements are: easy to get in out (likely small SUV) – MUST; electric driver’s seat – MUST; hybrid – preferred; budget – approx $40,000; new/used – open to new, demo or near-new used; Chinese cars – not really keen (reliability is a priority); premium unleaded – not keen.

So far we’ve looked at: Volkswagen T-Cross, T-Roc: both are nice, but run on premium fuel; Hyundai Venue: doesn’t have electric driver’s seat or hybrid; Hyundai Kona Hybrid Premium: ticks all the boxes, but stretches the budget; Skoda Karoq: nice, but premium fuel; Mazda CX-3: not very exciting, and a little harder to get into; Toyota Yaris Cross: very attractive option, but delivery delays are too long. We need the car by about June. – Brad

Answer: What you’re learning is to get the ideal car with all those features you generally have to spend more. You’ll likely have to compromise somewhere along the way.

With the Mazda, for example, as you’ve learnt the CX-3 is small and also ageing. But step up to the Mazda CX-30 Touring – at about $43,000 drive-away – and you’ll get more space and the powered driver’s seat she wants. But not hybrid…

Another one that could have got close to the shortlist is the Honda HR-V, but it isn’t available with a powered driver’s seat. That leaves you with the slightly larger Honda ZR-V, which performed well (coming equal second) in our Best Mid-Size SUV 2024. The challenge is the VTi LX is the most affordable with a powered driver’s seat and it’s $48,500 drive-away. The excellent hybrid is even more expensive at $54,900.

You could try a Kia Niro, but it also busts your budget big-time. Or the Kia Seltos, but the cheapest one with an electric driver’s seat is the $44,890 drive-away GT-Line. Also, wait lists can be long and there is no hybrid.

And, as you’ve noted, the Hyundai Kona Hybrid does a lot right, although it’s also a few grand over your budget for the Premium that hits your spec; it’s further over your price if you go for the hybrid.

The Volkswagens also get plenty right, as do some Skoda models (the two share major mechanical components beneath the skin). But, as you’ve noted, they need premium unleaded.

I’m not sure I’d let that worry me too much. They have relatively economical engines, to the point where they’ll often cost less to run than a rival that runs on regular unleaded.

But, as mentioned, you’ll also likely have to compromise on something – likely the budget or the dislike of newcomer Chinese brands – to find that perfect option.

Question: I’m considering buying a Tesla but am concerned the company keeps dropping its prices. What’s going on? Most other brands seem to be increasing prices, but Tesla just keeps going lower. I’m worried I’ll buy one and suddenly they’ll be cheaper again. – Janet

Answer: Tesla doesn’t always drop its prices. During COVID it increased prices to match the stratospheric demand.

Supply has now caught up and it appears demand is not quite as strong, in part because competition is heating up – and not just in the EV market (remember, there are plenty of people cross-shopping Tesla EVs with petrol-powered cars, including the Toyota Camry).

Over the past 18 months or so there have been multiple price reductions to Teslas, the most recent of which shaved $3000 off the Model 3. It’s all aimed at luring more buyers by lowering the price.

It’s a classic strategy used by all major brands, but is one that is often partially masked as a short-term discount or dealer incentive rather than something on the brand’s headline price.

And the way Tesla does it is very different to other brands, which are often trying to protect their residual values with some sort of price stability.

Tesla seems more interested in the short-term sugar high of keeping sales bubbling along.

Both are obviously important, but with some exceptions the traditional car-makers tend to do a better job of managing the two.

Question:

Answer: The Toyota Yaris Cross Hybrid is solid buying but it’s also easy to see where money has been saved. Drive the bigger, more expensive Toyota Corolla Cross, for example, and you’ll find a far more complete and refined package.

Also check out the hybrid versions of the Honda HR-V and Hyundai Kona. Or check out the Nissan QASHQAI e-POWER. It’s not exactly cheap but Nissan is soon expected to start selling a more affordable model variant with less equipment.

If you’re used to recharging, you could go for a full EV, too. The MG4 is great buying – it was carsales’ Car of the Year for 2023 – as is the BYD Atto 3.

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