Tesla Model Y 5-Year Depreciation in Australia: How Much Value Does It Lose?

The Tesla Model Y has become one of Australia's most recognisable electric SUVs, offering impressive performance, modern technology, generous interior space, and relatively low running costs. However, there's one important financial consideration that prospective buyers shouldn't overlook: depreciation.

While electric vehicles can save money on fuel and maintenance, their resale values can behave quite differently from those of traditional petrol and hybrid SUVs.

So, how much does a Tesla Model Y depreciate after five years in Australia?

Based on Australian used-car market trends through 2026, a reasonable planning estimate is that a new Tesla Model Y could lose approximately 55% to 65% of its original value over five years, retaining around 35% to 45%.

That means a Model Y purchased for A$58,900 before on-road costs could potentially be worth approximately A$20,600 to A$26,500 after five years.

However, these figures are projections rather than confirmed five-year results. The Model Y only entered the Australian market in 2022, so the earliest Australian-delivered examples won't reach their fifth anniversary until 2027.

In this guide, we'll examine real Australian depreciation data, calculate potential five-year resale values, explain why Tesla prices fluctuate, and help determine whether buying a new or used Model Y makes better financial sense.

How Much Does a Tesla Model Y Depreciate in Australia?

The Tesla Model Y has experienced significant depreciation in Australia, particularly among vehicles purchased during the early years of local availability.

Australian depreciation analysis published in 2026 reported the following approximate losses for the rear-wheel-drive Model Y, comparing used values with original new-car prices:

These figures reflect different model-year groups observed in 2026, rather than the depreciation history of one individual vehicle. My Electric Car

The results reveal an important trend: older Model Y vehicles have lost a substantial proportion of their original purchase prices.

For example, a 2022 Model Y had already depreciated by approximately 54% by August 2026, despite being only around four years old.

However, early buyers also faced an unusual challenge. Tesla reduced new-car prices significantly after the Model Y's Australian launch, which placed additional pressure on second-hand values.

Newer buyers paying lower initial prices may experience different depreciation patterns.

Tesla Model Y 5-Year Depreciation: Estimated Resale Value

Let's calculate how much a Tesla Model Y purchased new in 2026 might be worth in 2031.

Tesla's Australian pricing in 2026 includes the Premium Rear-Wheel Drive, Premium Long Range AWD, Model Y L and Performance AWD versions. Tesla

Using an illustrative five-year depreciation range of 55% to 65%, we obtain the following estimates.

These are illustrative 2031 resale estimates based on 2026 prices before on-road costs, not guaranteed valuations. Different variants may depreciate at different rates, and the Model Y L has no established Australian five-year resale history.

Example: Tesla Model Y Premium RWD Depreciation

Suppose we purchase a Model Y Premium RWD for A$58,900 and keep it for five years.

If depreciation reaches 60%, the calculation would look like this:

This means we could lose approximately A$589 per month in vehicle value alone.

Importantly, depreciation isn't a monthly payment. It's the difference between the amount we originally paid and the vehicle's eventual resale value.

The calculation also excludes electricity, insurance, tyres, registration, financing, and maintenance.

Is 60% Depreciation Guaranteed?

No. The Australian EV market is still developing, and future resale values are difficult to predict accurately.

The actual depreciation rate could be lower or higher depending on Tesla's pricing strategy, battery technology, competition, demand for used electric SUVs, and the condition of the vehicle.

We should therefore treat the 55%–65% estimate as a financial planning scenario rather than a fixed forecast.

Current Used Tesla Model Y Prices in Australia

Before predicting future depreciation, it's useful to examine what Australian buyers are currently paying for second-hand Model Y vehicles.

As of November 2026, used-car market data provides a clearer picture of how prices have developed since the Model Y's Australian introduction.

These figures cover different Model Y variants and reflect Australian dealer-market observations rather than guaranteed trade-in values. PL8ED

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What Do These Used Prices Tell Us?

A 2022 Model Y can now be considerably cheaper than its original purchase price.

For someone shopping for a used electric SUV, this creates an interesting opportunity. Instead of paying close to A$60,000 for a brand-new Model Y, buyers may find older examples for substantially less.

However, there are some important considerations.

A cheaper used Model Y may have higher kilometres, fewer remaining years of warranty coverage, older hardware, and more cosmetic wear.

We also need to remember that dealer advertised prices are not necessarily the amounts sellers receive when trading in their vehicles.

Private sale prices and dealer trade-in offers can be noticeably lower.

Why Does the Tesla Model Y Depreciate So Quickly?

Several factors influence Tesla Model Y depreciation in Australia. Some are common to almost every vehicle, while others are particularly relevant to electric cars.

1. Tesla's New-Car Price Reductions

One of the biggest influences on Model Y resale values has been Tesla's changing retail prices.

Unlike traditional manufacturers that often maintain relatively stable recommended prices between model updates, Tesla has frequently adjusted its Australian pricing.

When Tesla reduces the cost of a brand-new vehicle, existing owners face an immediate problem.

Imagine purchasing a new Model Y for A$70,000. If a similar new version subsequently becomes available for A$60,000, second-hand buyers naturally expect older vehicles to become cheaper as well.

Even if the original vehicle is in excellent condition, its market value may fall substantially.

This is particularly important for early Australian Model Y owners who purchased before later price reductions.

2. Rapid Improvements in Electric Vehicle Technology

Electric vehicle technology continues to develop.

Every few years, manufacturers introduce improvements involving battery efficiency, charging capabilities, infotainment systems, suspension technology, and vehicle design.

These developments can make older models less attractive to prospective buyers.

For example, a buyer comparing an older Tesla Model Y with a substantially updated version may prefer the newer vehicle because it offers improved comfort, cabin features, or efficiency.

However, older Tesla vehicles can still receive software updates, which may help them remain useful and competitive.

3. Increasing Competition in Australia

The Australian electric SUV market has become much more competitive.

Buyers considering a Tesla Model Y can also explore vehicles from brands such as BYD, Hyundai, Kia, MG, and other manufacturers.

As more electric SUVs enter the market, buyers have additional choices across different price ranges.

This competition can put downward pressure on used Model Y values, particularly when competing manufacturers offer attractive prices on new vehicles.

4. Battery Health and Buyer Confidence

One of the biggest concerns surrounding used electric vehicles is battery condition.

Some buyers worry about the cost of replacing a high-voltage battery or the possibility of reduced driving range after several years.

Although modern EV batteries are generally designed for long service lives, battery health remains an important consideration when determining resale value.

A Model Y with documented battery condition and warranty coverage may be easier to sell than one with uncertain history.

5. Vehicle Supply and Demand

Depreciation also depends on how many vehicles are available in the used market.

When large numbers of similar Model Y vehicles are advertised for sale, buyers have more negotiating power.

However, demand for used Teslas remains meaningful.

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Australian used-car reporting from October 2026 indicated that Tesla values declined more slowly over the preceding year than those of other used EVs in the measured market. The Model Y was also among the fastest-selling used vehicles in the reported dealer data. zecar

This highlights an important distinction: substantial historical depreciation doesn't necessarily mean resale values will keep falling at the same pace.

Tesla Model Y Depreciation vs Toyota RAV4 and Other SUVs

Many Australian buyers compare the Tesla Model Y with conventional SUVs such as the Toyota RAV4, Subaru Forester, Hyundai Tucson, and Mitsubishi Outlander.

From a resale-value perspective, these vehicles can perform quite differently.

Australian depreciation analysis in August 2026 reported the following figures for 2022 models.

These are historical comparisons based on specific variants and original prices, not forecasts of future five-year performance. My Electric Car

Does This Mean the Toyota RAV4 Is a Better Financial Choice?

If retaining resale value is our main priority, the RAV4 has demonstrated a significant advantage in this comparison.

However, depreciation isn't the only expense associated with owning a vehicle.

A Tesla Model Y offers other potential financial benefits, including lower energy costs for drivers who charge at home and fewer conventional engine-related maintenance requirements.

A more complete ownership comparison should consider depreciation, electricity or petrol, insurance, servicing, tyres, registration, and financing.

For some owners, lower running costs can partially offset the Model Y's depreciation disadvantage.

How Much Could You Save on Running Costs Over Five Years?

Let's examine a hypothetical example involving a Tesla Model Y and a petrol SUV.

Assume both vehicles travel 15,000 kilometres annually.

For illustration, we'll use electricity consumption of 17 kWh/100 km and an electricity tariff of A$0.30/kWh for the Tesla.

For the petrol SUV, we'll assume fuel consumption of 7.0 L/100 km and petrol costing A$1.90 per litre.

Under these assumptions, the Tesla saves approximately A$6,150 in energy expenses over five years.

These numbers are illustrative, not current Australian market averages. They exclude charging losses, subscription fees, public fast-charging premiums, and changes in energy prices.

Even with these potential savings, depreciation could remain the Model Y's largest ownership expense.

Does the Tesla Model Y Battery Warranty Help Resale Value?

Yes, battery warranty coverage can be an important advantage when selling a used Tesla.

For new Australian Model Y vehicles delivered from January 1, 2026, Tesla introduced a five-year, unlimited-kilometre basic vehicle warranty under normal-use conditions.

The high-voltage battery and drive-unit warranty generally provides:

The battery warranty includes a minimum 70% capacity-retention provision, subject to the applicable conditions. Earlier vehicles may have different basic vehicle warranties. Tesla Support Australia

Why Does Warranty Coverage Matter After Five Years?

If we sell a Model Y after five years, the battery warranty may still have approximately three years remaining, provided its kilometre limit hasn't been reached.

This can reassure buyers who are concerned about major battery-related expenses.

However, the 70% capacity guarantee doesn't mean every five-year-old Tesla will have lost 30% of its battery capacity.

It's a warranty threshold, not an expected degradation figure.

Buyers should verify the vehicle's actual remaining warranty and battery condition before purchasing.

Which Tesla Model Y Version Holds Its Value Best?

The answer depends on purchase price, used-market demand, age, and equipment.

Tesla Model Y Rear-Wheel Drive

The RWD model is generally the most affordable entry point into Model Y ownership.

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Because its original purchase price is lower, its absolute depreciation in dollars may also be lower than that of more expensive variants.

It provides practical family transport without requiring buyers to pay extra for all-wheel drive or maximum performance.

For cost-conscious Australian buyers, the RWD is worth considering.

Tesla Model Y Long Range AWD

The Long Range AWD version offers additional performance, greater driving range, and all-wheel-drive traction.

These features may appeal to buyers who regularly travel long distances or want a more versatile vehicle.

However, its higher original purchase price means that even a similar percentage depreciation rate produces a larger dollar loss.

Tesla Model Y Performance

The Performance variant delivers substantially stronger acceleration and additional performance-oriented equipment.

Although it can be attractive to enthusiasts, its higher purchase price increases financial exposure to depreciation.

A Performance model also competes in a more expensive section of the used market, where fewer buyers may be willing to pay a substantial premium for additional power.

We shouldn't automatically assume it will retain a higher percentage of its original price.

Which Version Would We Choose?

For someone primarily concerned about five-year depreciation, we'd start by comparing the RWD and Long Range AWD.

The RWD has a lower entry price, while the Long Range may offer additional everyday flexibility.

The best choice is the one whose features we'll actually use, rather than paying for expensive equipment with the expectation of recovering its cost at resale.

Is It Better to Buy a New or Used Tesla Model Y in Australia?

This is arguably the most important question for anyone concerned about depreciation.

Buying a New Tesla Model Y

Purchasing new offers several benefits.

We receive the latest available design and equipment, a new-vehicle warranty, a known ownership history, and the opportunity to select our preferred configuration.

However, we also accept the risk of substantial depreciation during the first few years.

A buyer planning to sell after only two or three years may be particularly sensitive to unexpected changes in Tesla's new-car pricing.

Buying a Used Tesla Model Y

A used Model Y can offer significantly better value.

For example, purchasing an older Model Y for A$40,000 instead of spending nearly A$60,000 on a new one reduces the amount of money exposed to future depreciation.

The previous owner has already absorbed a considerable portion of the original price decline.

However, that doesn't eliminate the possibility of further depreciation.

We still need to evaluate battery condition, kilometres, tyres, accident history, remaining warranty, and the cost of potential repairs.

A Simple Used Model Y Depreciation Example

Imagine purchasing a used Model Y for A$40,000.

Five years later, suppose it sells for A$22,000.

Our depreciation would be:

• Purchase price: A$40,000
• Resale value: A$22,000
• Total depreciation: A$18,000
• Percentage depreciation: 45%
• Average annual depreciation: A$3,600

Compare that with our earlier example of a new Model Y losing A$35,340 over five years.

The used vehicle would have lost A$17,340 less in absolute value.

Of course, the used Tesla would be older at the end of ownership and might require additional maintenance.

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Nevertheless, buying used can make financial sense for someone looking to minimise depreciation.

How to Reduce Tesla Model Y Depreciation in Australia

Although we cannot control the broader market, several practical decisions may improve our eventual resale outcome.

1. Avoid Paying for Unnecessary Options

Expensive paint finishes, upgraded wheels, and other optional equipment don't necessarily add equivalent value when the vehicle is sold.

Choosing a practical configuration can reduce the original purchase cost.

2. Keep Kilometres Reasonable

Annual mileage affects second-hand prices.

A five-year-old Model Y with 50,000 kilometres may attract different offers from an otherwise similar vehicle with 150,000 kilometres.

The difference becomes particularly important when approaching warranty kilometre limits.

3. Maintain the Vehicle Properly

Electric vehicles still require maintenance.

Tyres, suspension components, brakes, cabin filters, and other items can deteriorate with use.

Maintaining the vehicle properly and keeping records helps demonstrate responsible ownership.

4. Protect the Exterior and Interior

Paint damage, scratched wheels, stained seats, and excessive interior wear can negatively affect resale value.

Regular cleaning and sensible care may help preserve the vehicle's condition.

5. Compare Trade-In and Private Sale Offers

Dealers need to account for preparation costs, warranties, and profit margins.

Consequently, a trade-in offer may be lower than the amount we could receive in a successful private sale.

Comparing several offers helps establish a more realistic market value.

6. Watch Tesla's New-Car Pricing

When Tesla announces new models, equipment changes, or price reductions, used-car values may respond.

Owners considering selling should pay attention to market conditions instead of relying exclusively on what they originally paid.

7. Consider Keeping the Car Longer

Depreciation is often especially significant during the earlier years of ownership.

If the Model Y remains reliable and meets our needs, keeping it beyond five years may spread the initial depreciation expense over a longer period.

However, future battery condition, repairs, insurance, and technological changes should still be considered.

How to Calculate Tesla Model Y Depreciation

Calculating depreciation is straightforward once we know the original purchase price and estimated resale value.

The formula is:

Depreciation (%) = [(Original Price − Resale Value) ÷ Original Price] × 100

For example, consider a Tesla Model Y originally purchased for A$65,000.

If its current resale value is A$35,000:

Depreciation = [(65,000 − 35,000) ÷ 65,000] × 100

Depreciation = 46.15%

This means the vehicle has lost approximately 46.2% of its original value.

For the most accurate calculation, use the amount actually paid for the vehicle and the realistic sale proceeds, keeping any on-road costs and selling fees consistent with the purpose of the comparison.

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Will Tesla Model Y Depreciation Improve in the Future?

It's possible, but there are competing influences.

On one hand, Australia's electric vehicle market is becoming more established. More drivers are familiar with battery-electric vehicles, charging infrastructure continues to develop, and the second-hand market has a growing range of options.

These developments may support used-EV demand.

The Model Y also benefits from being a well-known vehicle with an established Australian ownership base.

On the other hand, future electric SUVs could become cheaper, more efficient, and more advanced.

Additional competition may encourage manufacturers to reduce new-car prices, making older vehicles less valuable.

Battery technology is another uncertainty.

If future EVs offer much greater driving range or significantly faster charging at comparable prices, buyers may become less interested in older models.

Therefore, we wouldn't rely on an assumption that Model Y depreciation will automatically improve.

A conservative financial plan is still sensible.

Is the Tesla Model Y Worth Buying Despite Depreciation?

The Tesla Model Y can still be an appealing vehicle for Australian drivers.

It offers spacious accommodation, strong electric performance, a practical SUV body, and the potential for relatively affordable home charging.

However, buyers should separate two questions:

Is the Tesla Model Y a good vehicle?

And:

Is the Tesla Model Y a good financial purchase?

A car can be enjoyable, reliable, and practical while still losing a considerable amount of value.

For someone planning to keep a Model Y for many years, depreciation may be less concerning than it would be for a driver who replaces vehicles every two or three years.

For buyers focused almost entirely on minimising financial losses, a used Model Y or an SUV with stronger historical resale value deserves consideration.

The best decision depends on how long we intend to keep the car, our driving habits, charging arrangements, and overall budget.

Frequently Asked Questions About Tesla Model Y 5-Year Depreciation in Australia

1. How much does a Tesla Model Y lose in value after five years in Australia?

A planning estimate is approximately 55% to 65% depreciation over five years, although actual results may differ. For a Model Y purchased new for A$58,900, that suggests a resale value of roughly A$20,600 to A$26,500. The first Australian Model Y vehicles arrived in 2022, so confirmed five-year local depreciation histories are not yet available as of November 2026.

2. What will a Tesla Model Y be worth after five years?

The value depends on the original price, variant, distance travelled, condition, and future used-car demand. A Model Y originally purchased for A$70,000 could be worth approximately A$24,500 to A$31,500 after five years under a 55%–65% depreciation scenario. This is an estimate rather than a guaranteed market valuation.

3. Does the Tesla Model Y depreciate faster than the Toyota RAV4?

Australian historical data shows that some older Tesla Model Y variants have depreciated considerably faster than comparable Toyota RAV4 models. However, future depreciation may differ because purchase prices, supply, competition, and consumer demand continue to change.

4. Is buying a second-hand Tesla Model Y a good idea in Australia?

A used Model Y can offer attractive value because its first owner may already have absorbed substantial depreciation. Before purchasing, buyers should check battery health, remaining warranty coverage, kilometres, accident history, vehicle condition, and comparable used-car prices.

5. Which Tesla Model Y has the lowest depreciation?

There isn't enough Australian five-year resale history to identify a definitive winner across every Model Y variant. The Rear-Wheel Drive version generally has a lower initial purchase price, which can help limit depreciation in dollar terms. However, percentage depreciation depends on future demand and the prices buyers are willing to pay.

Conclusion: Should Australian Buyers Worry About Tesla Model Y Depreciation?

Tesla Model Y depreciation is an important consideration when calculating the true cost of ownership in Australia.

Historical data shows that early Model Y vehicles have experienced substantial value losses, particularly following changes in Tesla's new-car pricing.

Based on the available market evidence, planning for approximately 55% to 65% depreciation over five years is a cautious approach, although actual future values may fall outside this range.

For a Tesla Model Y purchased at approximately A$58,900, that could mean losing around A$32,400 to A$38,300 in value during the first five years.

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Fortunately, depreciation isn't the entire ownership story.

Lower energy costs, potentially reduced routine maintenance requirements, practical everyday usability, and remaining battery warranty coverage can make the Model Y appealing despite its resale-value risks.

For Australian buyers who prioritise financial value, purchasing a well-maintained used Model Y may be particularly attractive.

Ultimately, we'd recommend evaluating the Tesla Model Y based on its total five-year ownership cost, not simply its purchase price or expected resale value.