Used car prices have generally gone down across the board, most noticeably in recent months.
Despite this, iSeeCars reports that the Tesla Model 3 has seen the greatest drop in price among all used cars, trucks, and SUVs sold in the United States over the course of the past half year on the market for pre-owned vehicles.
You might have considered purchasing an electric vehicle (EV) but may believe you can only afford one.
In addition, the dearth of dependable and widespread public charging infrastructure in your region may give you second thoughts about whether or not now is the right time to invest.
Used car prices continue to drop
According to iSeeCars, the average price of a used vehicle in the United States is 8.7% lower than in 2022, and this downward trend has continued throughout the year.
In order to get an idea of prices and, more particularly, which models are selling at the biggest discounts, the publication conducted an in-depth analysis of 1.8 million used car sales that took place on our shores between February 2022 and February 2023.
| Top 10 Used Cars with the Greatest 6-month Price Drops (Sep 2022 vs. Feb 2023) – iSeeCars Study | ||||
| Rank | Used Vehicle | Ave. Price (Feb 2023) | Price Change from Sep 2022 | % Price Change from Sep 2022 |
| 1 | Tesla Model 3 | $41,337 | -$11,302 | -21.5% |
| 2 | Nissan Kicks | $19,713 | -$3,050 | -13.4% |
| 3 | Nissan LEAF | $25,734 | -$3,502 | -12.0% |
| 4 | Toyota C-HR | $22.844 | -$3,072 | -11.9% |
| 5 | Jaquar E-PACE | $33,836 | -$4,437 | -11.6% |
| 6 | Tovota Prius Prime | $29.856 | -$3,875 | -11.5% |
| 7 | Chevrolet Malibu | $19.082 | -$2,463 | -11.4% |
| 8 | Toyota RAV4 | $27,612 | -$3,537 | -11.4% |
| 9 | Toyota Camry | $24,384 | -$3,050 | -11.1% |
| 10 | Hyundai loniq Hybrid | $20,528 | -$2,540 | -11.0% |
| National Average | $31,815 | $31,815 | – 4.7% |
The price reduction that has been the most significant for the Tesla electric sedan has occurred over the past half year.
According to the publication, the prices of pre-owned Model 3 automobiles have recently dropped by a staggering 21.5% since September 2022 and 19.3% year-over-year.
In the meantime, the typical discount on a used car is only 4.7% of the car’s original price.
| Top 10 Used Cars with the Greatest Y-o-Y Price Drops (Feb 2022 vs. Feb 2023) – iSeeCars Study | ||||
| Rank | Used Vehicle | Ave. Price (Feb 2023) | Price Change from Sep 2022 | % Price Change from Sep 2022 |
| 1 | Infiniti QX80 | $41.094 | -$11,780 | -22.3% |
| 2 | Nissan Armada | $33,300 | – $8,471 | -20.3% |
| 3 | Land Rover Discovery | $40,841 | – $10.132 | -19.9% |
| 4 | Tesla Model 3 | 541,337 | – $9 914 | 19.3% |
| 5 | Land Rover Range Rover Velar | $47.255 | – $11,263 | -19.2% |
| 6 | Jaguar E-PACE | $33,836 | – $7 377 | – 17.9% |
| 7 | Audi S5 Sportback | 544,528 | – $9 498 | -17.6% |
| 8 | Audi SQ5 | $43,092 | – $8.928 | – 17.2% |
| 9 | Jaguar F-PACE | $37,497 | – $7.561 | – 16.8% |
| 10 | Mercedes-Benz CLS | $57,454 | – $11.173 | – 16.3% |
| National Average | $31,815 | – $3,024 | – 8.7% |
Used EV prices declined by 13.9%
iSeeCars also reports that prices for used electric vehicles have decreased by 13.9% compared to what they were in February 2022.
Interestingly, the Nissan Leaf is the only fully electric car on the list of vehicles that have experienced the largest price drops over the past six months on the used market.
However, there a plug-in hybrid electric vehicle and a hybrid vehicle. The price of a Leaf has decreased by 12% over the past six months.
The first chart illustrates the biggest used price cuts over the past six months, and the second chart shows year-over-year decreases in used prices.
Used EV market
iSeeCars executive analyst Karl Brauer adds that he has heard a few discussions about the prices increasing, but he presumes that they must be in the wholesale and auction spaces.
But we’re not seeing used car price increases at the retail level, suggesting dealers are having to pay more but aren’t seeing higher prices when it’s time to sell. This potentially means profit margins for dealers are compressing
Karl Brauer, iSeeCars Executive stated on used cars price increase
Insideevs reports that no matter the specifics, we can deduce from past examples that price fluctuations, both increases and decreases, do not endure indefinitely. Watch the market closely; try to capitalize on the current low prices while they last.
If dealers have to pay more for these vehicles, then it is highly likely that they will attempt to raise prices to compensate for their narrowing profit margins.
See Also
- The City of Venice to test the cost-effectiveness of the Tesla Model 3 fleet
- Tesla Model 3 & Y qualify for California’s USD2,000 rebate
- 2023 Tesla Model 3 – Review, Pricing, and Specifications
- Tesla Model 3 is Australia’s third-best-selling vehicle
- Tesla Model 3 as Germany’s top EV in November – overtaking Model Y
