Tesla Model 3 Leads Ongoing Plunge in Used Electric Vehicle Prices

Highlights: 

• The Tesla Model 3, Kia Niro EV, Maserati Levante, Nissan Leaf, Hyundai Kona Electric, and Chevrolet Bolt saw the biggest used vehicle price drops over the past year

• 1- to 5-year-old used electric vehicle prices have swung from 12.1 percent above used gasoline cars to 11.4 percent below used gasoline cars since August of 2023

• The average used EV lost 25 percent of its value over the past year, sliding from $35,621 in August of 2023 to $26,839 in August of 2024

• By comparison, gasoline prices were down 4.4 percent and hybrid prices were down 6 percent between August of 2023 and August of 2024

• Used EVs are selling much faster than they did a year ago, suggesting the massive price drops have improved demand for used electric vehicles

While used car prices continue to drop from their COVID-era highs, used electric vehicle prices are dropping much faster. Used EVs prices have fallen four times faster than hybrids and six times faster than gasoline models, losing 24.7 percent of their value over the past year. This compares to a 6 percent drop in used hybrid prices and 4.4 percent drop in used gasoline prices, according to the latest iSeeCars study.

The study analyzed the pricing trends of over 1.6 million 1- to 5-year-old used cars sold in August 2023 and 2024 to determine the difference in market values between used gasoline, hybrid, and electric vehicles.

Used Electric Vehicle Prices Are Much Lower, But They’re Selling Faster

“The 25 percent drop in used electric vehicle prices over the past year remains several times higher than gasoline or hybrid cars,” said Karl Brauer, iSeeCars Executive Analyst. “But it’s lower than the 30 to 40 percent drops we were seeing at the end of 2023 and first half of 2024. And the substantial drop in EV prices over the past year appears to have brought them in line with demand, with used EV days-on-market much lower today, reflecting a faster selling rate compared to a year ago.”

While used EV prices continue to fall, used hybrid and gasoline cars are showing remarkable stability. Both vehicle types are holding stable at around $30,000, while used electric vehicles fell below $27,000 for the first time last month.

“The used car market clearly couldn’t support electric vehicles priced in the mid- to low-$30,000 range,” said Brauer. “But with used EV prices showing smaller declines in recent months it’s possible these cars will stabilize somewhere around $25,000.”

Used Cars Are Selling Faster Across All Vehicle Types

While price remains the primary metric for measuring demand, the speed at which cars are selling also reflects the market’s appetite for used cars. All three vehicle types (gasoline, hybrids, and electric cars) are selling faster today than they did a year ago. This suggests an increase in used vehicle demand, with the EVs seeing the biggest decrease in time to sell.

“Used electric cars have dropped from an average of 55.3 days in September 2023 to 38.6 days in how long they take to sell,” said Brauer. “This is a bigger drop than gasoline or hybrid cars, with all three vehicle types now taking the same time to sell on average. This indicates solid demand for used EVs – if they are priced 8 to 11 percent below hybrid and gasoline vehicles.

Used Gasoline Car Prices Still Holding Steady

Gasoline cars have seen a slight decline in price over the past year compared to the previous year, but the variation in these year-over-year differences has been less than 5 percent most months. It reflects the ongoing demand that built up during COVID, when new cars were scarce and many new car buyers had to turn to used cars when they needed to replace a vehicle. 

“Used car shoppers waiting for a big price drop in traditional gasoline vehicle values have been disappointed, and forced to either wait longer or buy a used car at a higher price than they anticipated,” said Brauer. 

Used Hybrid Car Prices: Strong Demand Means Stable Pricing

Used hybrid prices in August have dropped 6 percent over the past year, a bit more than gasoline cars, but they’ve held stable at around $30,000 and show every indication of remaining near that price point for the foreseeable future. 

“The benefits of high fuel efficiency, low purchase cost, and zero range anxiety have kept hybrid demand strong,” said Brauer. “Automakers have seen growing consumer preference for hybrids over EVs in recent months, and are planning to increase hybrid production in the next few years.”

Used Electric Vehicle Prices Dropping Like a Lead Balloon

The year-over-year decline in electric vehicle prices is very slowly moderating, but it continued at 20 to 30 percent in recent months. This pushed used EV prices below $27,000 for the first time in August of 2024, more than 11 percent below gasoline models. 

“People waiting for a good deal on a used electric car have been rewarded for their patience,” said Brauer. “If you bought a used EV a year ago you probably bought too soon, but at today’s prices a used EV is starting to make sense – assuming your lifestyle and vehicle needs line up with the benefits and limitations of an EV.”

15 Cars With the Biggest Price Drops

Looking at the biggest price drops over the past year, five of the top six cars are electric vehicles, led by the Tesla Model 3 and Kia Niro EV. Luxury cars from brands like Jaguar, Land Rover, and Maserati are also prominent on the list.

“The strength of the used car market means there are few deals to be found,” said Brauer. “But if you’re in the market for a Tesla Model 3, a small entry-level EV, or a luxury SUV from Land Rover, you can find much better prices than were available a year ago.”

15 Cars With the Biggest Price Gains

These 15 cars have all gone up in price over the past year, with the Porsche Cayman leading the list with a 21 percent, $17,532 increase in value. Other hot used cars include the Volvo S90, Chevrolet Camaro, BMW 2 Series, and Mitsubishi Outlander PHEV.

“Performance cars built in limited numbers often do quite well in the used market,” said Brauer. “The same can be said for iconic models like the Jeep Wrangler, BMW M5, and Chevrolet Camaro, the latter of which is no longer in production and is likely finding buyers who want one of the last models available. And the growing popularity in plug-in hybrids is likely pulling used Mitsubishi Outlander PHEV’s prices up.”

Used Car Buying Opportunities Do Exist

“Used car buyers may not be seeing the price reductions they were hoping for after the market spiked during COVID, but there are deals to be found out there, especially if you’re ready and willing to give a used electric car a try,” said iSeeCars Executive Analyst Karl Brauer.

Methodology

iSeeCars analyzed over 1.6 million 1- to 5-year-old used cars sold in August 2023 and 2024. The average listing prices of each car model were compared between the two time periods, and the differences were expressed as both a percentage difference from the 2023 price as well as a dollar difference. Additionally, the number of days each car was listed on iSeeCars.com was also mathematically modeled and aggregated. Heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2023 model year, and vehicles in production for fewer than four of the last five model years for each period were excluded from further analysis.

More from iSeeCars:

• Longest-Lasting Cars, Trucks, and SUVs to Reach 250,000 miles

• Why Window Stickers are Important

• What Are the Cheapest Teslas?

About iSeeCars.com

iSeeCars.com is a data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resources, including the iSeeCars VIN Check report and Best Cars Rankings. iSeeCars has saved users over $421 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.

This article, Tesla Model 3 Leads Ongoing Plunge in Used Electric Vehicle Prices, originally appeared on iSeeCars.com.