A used Tesla Model 3 cost $25,931, from a drop of $8,558, or 24.8%, compared to last year.
The average used electric vehicle lost 25% of its value over the past year, sliding from $35,621 in August of 2023 to $26,839 in August of 2024, according to an iSeeCars study released Sept. 9.
By comparison, gasoline prices were down 4.4% percent and hybrid prices were down 6% between August of 2023 and August of 2024. That means used EVs prices have fallen four times faster than hybrids and six times faster than gasoline models.
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. A used Tesla Model 3 cost $25,931, from a drop of $8,558, or 24.8%, compared to last year. A used Kia Niro EV was priced $21,692, for a 21% drop of $5,769 compared to last year.
Pricing and Sales Speed of Used EVs
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.
“The 25% 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, in a news release. “But it’s lower than the 30% to 40% 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.”
Used hybrid and gasoline 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,” Brauer said. “But with used EV prices showing smaller declines in recent months it’s possible these cars will stabilize somewhere around $25,000.”
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 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% in recent months. This pushed used EV prices below $27,000 for the first time in August of 2024, more than 11% below gasoline models.
“People waiting for a good deal on a used electric car have been rewarded for their patience,” Brauer said. “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.”
