Shoppers in the used car market are seeing significant price reductions on electric vehicles (EVs), with Tesla (NASDAQ:TSLA) models experiencing the most substantial declines. The latest data highlights a downward trend in used EV prices, providing potential buyers with more affordable options. Market analysts attribute the price decline to multiple factors, including supply chain improvements, increased production, and shifting consumer demand. Additionally, the broader used car market has seen only minor price adjustments compared to the steep drop in EV values.
Previous reports have shown that fluctuations in the used EV market are not new. Tesla vehicles, in particular, have experienced price drops over the last several years, largely due to frequent new model releases and price cuts on new vehicles. Compared to earlier trends, the recent 15.1% decline in used EV prices is one of the more pronounced shifts, giving buyers more options at reduced costs. Luxury EV brands like Porsche and Maserati have also seen notable declines, signaling a broader trend beyond Tesla.
How much have used EV prices fallen?
According to the latest study by iSeeCars, the average price of a used EV dropped by 15.1% over the past year, amounting to a $5,709 price reduction. In comparison, the broader used car market saw only a 0.8% decrease, translating to a $239 drop. Among all brands, Tesla vehicles had the most significant price declines, with an average reduction of $5,013, or 13.6%. This outpaced other brands such as Maserati (10.6%), Chrysler (7.6%), Chevrolet (6.5%), and Genesis (4.8%).
Which EV models saw the biggest price drops?
The Porsche Taycan recorded the largest price decrease among used EV models, declining by 26.5% to an average price of $73,976. Tesla models also saw significant reductions, with the Model S dropping 16.2% to $49,366 and the Model Y falling 15.9% to $31,247. Lower-cost options have also become more accessible, with the Nissan Leaf averaging under $17,000 and the Hyundai Kona and Kia Niro priced below $22,000 following double-digit percentage declines.
“Used electric vehicle shoppers seeking a car for under $25,000 now have several choices, including the Nissan Leaf with an average price below $17,000,” said Karl Brauer, executive analyst at iSeeCars.
In contrast, gas-powered and hybrid used vehicles have remained relatively stable in pricing. The average price of a used hybrid declined by only 0.5%, with a $156 reduction to $29,881. Similarly, used internal combustion engine vehicles experienced a 0.5% drop, with prices decreasing by $153 to $31,281. These modest shifts highlight the stark difference between EV price trends and those of traditional vehicles.
“It’s not easy to find a great deal in today’s used car market,” Brauer noted. “But if an electric vehicle can serve your personal transportation needs, most used models have dropped substantially in cost over the past year, especially compared to gas and hybrid models.”
The decline in used EV prices reflects larger industry trends. Automakers have been adjusting pricing strategies for new EVs, leading to depreciation in the used market. Tesla, in particular, has made several price cuts in recent years, influencing resale values. As more manufacturers ramp up EV production and introduce new models, the availability of used EVs continues to rise, putting downward pressure on prices. For consumers, this means increased affordability, though resale values for current EV owners may continue to decline.
