Used Tesla prices have dropped dramatically since Tesla’s price cut earlier this year. However, they remain high in comparison to other used EV offerings.
As we all know, Tesla is the undisputed market leader in electric vehicles in the United States, accounting for roughly two-thirds of the market.
With all of this consumer interest and demand, it is no surprise that used Tesla prices remain high, even as wait times for new vehicles remain long.
However, used Tesla prices stay elevated post-price cut, despite significant price drops, per iSeeCars data.
Used Tesla market struggled in 2023
Undoubtedly, the used Tesla market suffered significantly earlier this year when the automaker cut new vehicle prices.
According to iSeeCars, the average cost of a Tesla dropped 4.8 percent in the weeks following the cut.
This huge reduction was more than three times greater than the 1.8 percent drop in EV prices during the same timeframe.
However, a closer examination of the data reveals an unexpected trend:
Change in Average Price of Used Tesla Models before and after Jan 12th Price drop announcement
| Model | Pre-announcement Avg price | Post-announcement Avg price | % change | $ change |
| Tesla Model 3 | $44,987 | $42,633 | -5.2% | -$2,354 |
| Tesla Model S | $90,035 | $85,409 | -5.1% | -$4,626 |
| Tesla Model X | $86,828 | $83,457 | -3.0% | $3,370 |
| Tesla Model Y | $56,786 | $53,970 | -5.0% | -$2,816 |
| Average | $56,154 | $53,486 | -4.8% | -$2,668 |
The Model 3 might be the best example of the recently used Tesla situation. Despite a 5.2 percent drop in price during the tracked timeframe, the average used Tesla Model 3 sold for $42,633, making it ineligible for the used EV tax credit.
Moreover, at that price point, the used Model 3 is still more pricey than the base model new Model 3, owing to IRA incentives for new EVs.
The Model Y fared only slightly better. Along with the January price cuts, an average used Tesla Model Y now starts at $53,970, just below the starting price of $54,990. However, it falls short of the starting price when incentives are considered.
Tesla Model 3 price range: $20,000 to $35,000
Interestingly, looking for used Teslas for sale near me on Facebook Marketplace and Craigslist produced only marginally better results.
There are numerous Model 3s in the $30,000 to $35,000 price range, with some rare deals in the $20,000 range.
Several current Tesla owners who want to sell their vehicles are in an unusual situation. A used Tesla is no longer an appreciating asset for the first time in a long time.
On the other hand, buyers looking for a used Tesla continue to face many significantly overpriced options, restricting them from electrifying as quickly as they would like.
Good price deals for some used EVs
Nonetheless, great used EVs are available for those looking for a low-cost entry point. Despite the fact that iSeeCars discovered that the average used EV for sale in the United States cost an eye-watering $50,405, vehicles such as the Nissan Leaf, BMW i3, and Chevy Bolt remain to be excellent entry-level options that frequently fall below the $20,000 mark.
Undoubtedly, the price of used Teslas will continue to fall as they age and the market normalizes.
As with the early years of the Tesla Model S, there may come a time when an average used Model 3 costs less than $25,000.
