Used Car Prices Continue to Fall, Led by Tesla’s Model 3

Summary:

• While overall prices are down 8.7 percent, 10 models have price drops of 16-plus percent

• Infiniti QX80, Nissan Armada, Land Rover Discovery, and Tesla Model 3 prices are all down more than 19 percent from a year ago

• Electric vehicles' prices have fallen dramatically, down 13.9 percent compared to a year ago

The latest iSeeCars.com analysis found used car prices have continued to fall over the past year, down 4.7 percent from September and 8.7 percent from a year ago. The Tesla Model 3 had the biggest price drop in the last 6 months, down 21.5 percent since September 2022.

In September, used car prices were up 7.8 percent compared to a year earlier, but by November they were 2.1 percent below November 2021. The iSeeCars study analyzed 1.8 million used cars sales between February 2022 and February 2023 to identify used car pricing trends and which models have seen the biggest price increases and biggest decreases over the past 6 and 12 months.

“The used car market has fragmented over the past year,” said iSeeCars’ executive analyst Karl Brauer. “While prices are still higher than before the pandemic, they have consistently dropped over the past year and at an accelerated rate in the past 6 months.”

10 Models with the Biggest 6-Month Price Drops

While overall prices are down 8.7 percent compared to a year ago, and 4.7 percent since September, some models have fallen much farther.

“The Tesla Model 3 has lost over 20 percent of its value in the last six months, and while multiple hybrids and the Nissan Leaf are also down between 11 and 22 percent over the same period, the Model 3’s loss of value is close to double that of the next model, the Nissan Kicks,” said Brauer.

These are the cars with the biggest price drops over the past 6 months:

10 Models with the Biggest Year-over-Year Price Drops

Looking back a full year the Tesla Model 3 and Jaguar E-Pace continue to rank among the cars with the largest price declines, but the list also has mostly higher-priced luxury models, including two Audis, two Land Rovers and another Jaguar. The only non-luxury models are the Tesla and the Nissan Armada, which is a mechanical twin to the Infiniti QX80, both of which are down more than 20 percent.

Here are the cars with the biggest price drops over the past year:

10 Models with the Biggest Price Hikes

While the average used car is down in price, some models are fighting the trend, with prices higher than 6 and 12 months ago. All the cars that have gone up in price over the past 6 months are luxury models, confirming the willingness of wealthier consumers to still spend over MSRP to get the vehicle they want.

Here are the cars with the biggest price hikes over the past 6 months: