Tesla Model 3 used prices are now down 21.5% since last year’s peak. On average, the used price of Tesla’s cheapest vehicle is down by more than $11,000.
Due to the high demand and short supply of new EVs, used EV prices went up at an impressive rate last year. At one point last year, used Tesla Model Y prices went out of control and started to sell at higher prices than new Model Y vehicles.
But used prices finally started to come down in December as Tesla started to offer discounts at the end of the quarter. They have continued to come down over the last few months, particularly after Tesla implemented massive price cuts throughout its entire lineup and the new federal EV tax credit came into effect.
iSeeCars has been tracking used car prices and reports that the national average has fallen 4.7% over the last six months, and the Tesla Model 3 is leading the pack:
The latest iSeeCars.com analysis found used car prices have continued to fall over the past year, down 4.7 percent from September and 8.7 percent from a year ago. The Tesla Model 3 had the biggest price drop in the last 6 months, down 21.5 percent since September 2022.
Here are the leaders in price drops for used vehicles over the last six months:
|Rank||Used Vehicle||Average Price (Feb 2023)||$ Price Change from Sept 2022||% Price Change from Sept 2022|
|1||Tesla Model 3||$41,337||-$11,302||-21.5%|
|6||Toyota Prius Prime||$29,856||-$3,875||-11.5%|
|10||Hyundai Ioniq Hybrid||$20,528||-$2,540||-11.0%|
However, the Model 3 doesn’t look so bad in the year-over-year comparison, where it is down 19.3%, which is similar to many other premium vehicles:
|Rank||Used Vehicle||Average Price (Feb 2023)||$ Price Change from Feb 2022||% Price Change from Feb 2022|
|3||Land Rover Discovery||$40,841||-$10,132||-19.9%|
|4||Tesla Model 3||$41,337||-$9,914||-19.3%|
|5||Land Rover Range Rover Velar||$47,255||-$11,263||-19.2%|
|7||Audi S5 Sportback||$44,528||-$9,498||-17.6%|
Most car buyers can’t afford a new car and turn to the used car market, which is a critical part of the auto industry.
When it comes to electrification, we always focus on the new car market since that’s what is needed to transition the industry, and it’s also what feeds the electric used car market, which is still a pretty young one. But it is growing fast and starting to be more exciting.
Last year, things got out of control, but you can now find some decent used electric cars these days. It’s not easy, but it’s doable. As for Model 3, I think you will start seeing some decent deals next year as more cars come off their leases.