Summary:

Used vehicle prices dropped by less than 4 percent year-over-year for the third month in a row Used electric vehicle prices have fallen by nearly 30 percent, and the free fall keeps accelerating, growing from 8.8 percent in January to 16.8 percent in March to 29.5 percent in June Tesla’s Model 3 and Model X are leading the drop in used car pricing, followed by the Nissan Leaf and Tesla Model S

Used car pricing appears to be stabilizing, with overall prices down 3.6 percent year-over-year in June, according to a new iSeeCars.com study. This follows price drops of 2.9 percent in May and 3.6 percent in April, along with drops of 6 to 8 percent from January to March.

But used electric vehicle prices are collapsing even as overall used car prices stabilize. June saw used EV prices drop 29.5 percent from a year earlier, after falling 28.9 percent in May, 24 percent in April, and 16.8 percent in March. iSeeCars analyzed over 1.8 million 1- to 5-year-old used cars to identify the latest used car pricing trends.

“A year ago, used EV prices were on the upswing, rising faster than the average used car,” said iSeeCars Executive Analyst Karl Brauer. “Electric vehicle prices are now falling at nearly 10 times the rate of the average used vehicle, reflecting a clear shift in EV supply and demand.”

“Used car prices have stabilized recently, and were down less than 4 percent over the past 3 months,” said Brauer. “But used car prices remain well above pre-pandemic levels, and will likely stay in this elevated state throughout 2023.”

"Used electric vehicle prices are in a free-fall, dropping 15.7 percent since January and by an increasing amount every month so far in 2023,” said Brauer. “With Tesla cutting prices on new models its used EV values have tumbled. And because Tesla makes up the bulk of the used EV market the dramatic drop in Tesla values has impacted the entire category.”

“In Spring 2022 the war in Ukraine sent the cost of oil skyrocketing. Consumers saw electric vehicles as a safe haven from volatile gas prices,” said Brauer. “A year later fuel prices have stabilized, interest rates have risen, and shoppers are cautiously weighing their vehicle purchase options as they seek maximum value from their car-buying dollar. None of these factors contribute to electric vehicle demand.”

Used Cars With the Biggest Price Drops

The top models with the largest price drops include six hybrid and electric vehicles, led by Tesla’s models. “Tesla occupies three of the top four slots in used car price drops, with Nissan’s LEAF rounding out the top four and confirming the market’s shift away from older, high-volume electric vehicles,” said Brauer. “With so many newer EVs entering the market over the past two years cars like the Model 3, X, S, and LEAF are looking less competitive and less compelling.”

“We also see multiple Land Rovers and a Jaguar in this list, two brands that often struggle with resale value, especially when the market turns and used cars overall aren’t seeing the same demand they experienced for the past 3 years,” said Brauer.

Used Cars With the Biggest Price Gains

Despite the market’s overall pricing trend, not all used cars are dropping in value. Several premium models, along with the Chevrolet Suburban and Nissan Frontier, have gone up in value from June of 2022, confirming ongoing demand for performance models, SUVs, and trucks.

Used Car Price Changes By City

Across the 50 largest US metro areas, all but three show an overall drop in prices from June of 2022. However, even in those three cities the Tesla Model 3 is the model with the largest year-over-year price drop, and it holds the same distinction in a total of 31 metro areas. The Model S and the Model X lost the most value in one city each. A Land Rover model lost the most value in six metro areas, reflecting its pricing nationally, while the Mercedes-Benz GLC and Volkswagen Atlas led in two cities. An all-new GLC and highly revised Atlas were just introduced, likely contributing to the drop in used values for those models.

“Used car prices are still well above pre-pandemic levels, but they’ve come off their highs from last year and should be relatively stable over the next 6 to 12 months,” said Karl Brauer. “Shoppers in need of a used car can find deals now, particularly on used Teslas, which have lost substantial value over the past 12 months.”

Methodology iSeeCars analyzed over 1.8 million 1- to 5-year-old used cars from June 2022 and 2023. The average listing prices of each car model were compared between the two time periods, and the differences were expressed as both a percentage difference from the 2022 price as well as a dollar difference. Heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2022 model year, and vehicles with fewer than 4 of the last 5 model years for each period were excluded from further analysis.

About iSeeCars.com

iSeeCars.com is a data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resources, including the iSeeCars VIN Check report and Best Cars Rankings. iSeeCars has saved users over $406 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.