Used Tesla Model 3 EVs suffer gigantic year-over-year price drop as average pre-owned EV now costs less than gasoline car
If you were holding out for a used electric car, now seems like a pretty good time to pull the trigger. According to statistics released by iSeeCars, the average price of a 1-to-5-year-old used EV has dropped by a considerable 25% since a year ago in the US. This massive decline has made, on average, a used EV in the US 11.4% cheaper than a gasoline car and 1.8% cheaper than a hybrid vehicle.
This is a 180-degree turn from a year ago when a pre-owned electric car cost 12.1% more than a gasoline one.
In Dollar terms, where customers had to shell out an average of $35,621 for a pre-owned EV in August 2023, they can now get it for only $26,839 or a substantial $8,782 less. gasoline and hybrid cars have also followed this trajectory, albeit at a slower pace. Compared to a year ago, a used gasoline car now costs 4.4% less at $30,292 while a used hybrid vehicle now comes in at a 6% cheaper price of $29,759.
As expected, the massive YoY drop in the prices of used EVs has spurred an increase in demand.
Pre-owned electric cars are selling quickly
A reduction in the price of used EVs have caused an uptick in demand with iSeeCars reporting an average Days on Market period of only 38.6 days. This is down from 55.3 days in September 2023 and is now in line with the DOM of gasoline (39.6 days) and hybrid cars (37.1 days).
Since used EVs are now selling much faster than in the latter half of 2023 and early 2024, iSeeCar’s Executive Analyst Karl Brauer suggests that “this indicates solid demand for used EVs – if they are priced 8 to 11 percent below hybrid and gasoline vehicles”.
Used Tesla Model 3 suffered the biggest price drop
According to iSeeCars’ report, the Tesla Model 3 ranks first on the list of the top 15 used EVs with the biggest price drops. A used Tesla Model 3 is now $8,558 or 25% cheaper than a year ago and can now be had for only $25,931. The only other Tesla on the list is the Tesla Model S at the 15th place with a YoY reduction of 13.4% for an average price of $53,141.
The second and third place are occupied by the Kia Nero EV and the Maserati Levante with YoY price drops of 21% and 20.2% corresponding to cuts of $5,769 and $11,086 respectively.
Long story short, it seems that the pent up demand for used EVs is finally getting satisfied with the help of deep price cuts. Consumer are now buying pre-owned EVs at a much faster rate than a year ago. As such, iSeeCars’ Karl Brauer postulates that the price to "stabilize somewhere around $25,000".
