Used car prices are essentially down across the board, and notably. That said, according to iSeeCars, the Tesla Model 3 leads the pack among all US cars, trucks, and SUVs when it comes to the biggest price reductions on the used market in the last six months.
Perhaps you've been considering an EV but don't think you can afford it. Moreover, maybe the lack of widespread and reliable public charging infrastructure in your area still has you second-guessing whether now is the time to take the plunge. We recommend checking the used market now, as pre-owned Tesla Model 3 sedans are selling at a huge discount.
iSeeCars notes that used car prices as a whole in the US are down 8.7% from 2022, and they've been dropping all year. The publication looked closely at 1.8 million used car sales on our shores from February 2022 to February 2023 to get a handle on prices, and more specifically, which models are selling at the biggest discounts.
Over the course of the last six months, the Tesla electric sedan has shown the most substantial price drop. In fact, the publication says Model 3 pre-owned prices are now down a whopping 21.5% from September 2022 and 19.3% year-over-year. Meanwhile, the average used car is only selling at a meager 4.7% discount.
iSeeCars also adds that used EV prices, in general, are down 13.9% compared to prices in February 2022. That said, interestingly, the Nissan Leaf is the only other fully electric car on the list of cars with the largest six-month price drops on the used market, though there is a PHEV and a hybrid. Over the past six months, Leaf prices have come down 12%.
Check out the charts below for more details. The first chart shows the largest used price drops over the last six months, and the second shows year-over-year used price drops.
iSeeCars executive analyst Karl Brauer adds that he's heard some talk about the prices rising, but he assumes they must be in the wholesale and auction spaces. He shares:
“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.”
Regardless of the details, we do know based on history that price hikes and price drops don't last forever. Keep your eyes on the market and try to take advantage of the low prices while you can. If dealers really are having to pay more for these vehicles, they'll likely attempt to raise prices to compensate for their falling margins.