Tesla used car prices fell 10.1% in March YoY, largest drop among 10 auto brands.

Tesla used car prices fell 10.1% in March YoY, largest drop among 10 auto brands.

Tesla's used car prices have experienced a significant drop, with a 10.1% year-over-year decline in March 2025, making it the brand with the largest price decrease among the top 10 auto brands. This substantial drop underscores the ongoing trend of depreciation in the used car market for electric vehicles (EVs).

According to a recent study by iSeeCars, which analyzed 1.4 million one- to five-year-old used cars sold in March 2024 and March 2025, Tesla's used car prices have been falling for over two years. The study found that the Model S, Model 3, and Model Y all made the top 10 list of used cars with the biggest price drops. The Model S, Tesla's flagship luxury sedan, saw the most significant decrease, with a 17.2% drop in price over the past year, amounting to a $9,944 reduction. The average price of a used Model S in March 2025 was $47,931 [1].

The Model 3, while cheaper than the Model Y, also experienced a notable price drop of 10.9%, with the average price in March 2025 at $26,084. This makes the Model 3 the most affordable option among the top-selling used Teslas.

The study also revealed that EVs made up half of the top 10 cars on the list, with the Porsche Taycan and Hyundai Kona Electric joining the three Teslas. Other vehicles on the list included the Ford Explorer hybrid, BMW 5 Series hybrid, Maserati Levante, Mercedes-Benz AMG GT, and Jeep Gladiator.

Tesla's price cuts on new models have had a cascading effect on the used car market, driving down the prices of used Teslas. According to iSeeCars Executive Analyst Karl Braue, "Price cuts on new Teslas immediately impacted used Teslas, driving their prices down at a rapid rate." This strategy aimed to maintain sales growth but ultimately led to a decline in annual sales for Tesla last year [1].

The overall used car market has seen a 1.0% year-over-year increase in prices, but the significant drop in used EV prices, particularly for Tesla, highlights the market's evolving dynamics. This trend could present opportunities for investors looking to acquire used EVs at lower prices, while also signaling potential challenges for automakers and dealerships in the used car market.

References:
[1] https://www.motor1.com/news/757260/used-tesla-car-prices-biggest-drop/