With Tesla slashing prices on new models, used electric vehicles are more affordable than ever.
The Tesla Model Y and Model 3 are currently at the center of the rapidly changing used electric vehicle (EV) market, with both models experiencing significant price drops. The Tesla Model Y, often seen as the top-selling EV in the U.S., has recently seen its prices fall by 25.9% year-over-year. This has brought the average cost of a one- to three-year-old Model Y down to $33,310, compared to $44,979 in 2023—a decrease of $11,670. Despite this drop, the Model Y remains in high demand, ranking as the 16th best-selling used car overall in August 2024.
The story is similar for the Tesla Model 3, which has seen even steeper depreciation. The price of a used Model 3 has dropped by over $8,500 in the last year, bringing the average price down to around $26,000. This trend is part of a broader market shift, with used EV prices falling at a much faster rate than gas and hybrid vehicles. In fact, used EVs have lost 24.7% of their value in the last year, compared to 6% for hybrids and just 4.4% for gas cars.
One of the key reasons for these price drops is Tesla’s rapid price cuts for its new vehicles over the past year, which have influenced the entire EV market. While this has been tough for those who bought these models before the price drops, it’s great news for anyone in the market for a used EV. Lower prices are making used electric vehicles more accessible to a wider range of buyers, and demand is picking up as a result. In fact, used EVs are now spending significantly less time on the market, with average days-to-sell dropping from 55.3 days in September 2023 to just 38.6 days today.
Other EVs, like the Kia Niro EV and Hyundai Kona Electric, have also seen their prices drop sharply. The Kia Niro EV is now selling for about $22,000, which is $6,000 less than it was last year. Meanwhile, the Nissan Leaf, a popular entry-level EV, has dropped to around $16,000, making it one of the most affordable used EVs available.
While Tesla models are still leading the charge, other electric vehicles are also becoming attractive options on the used market. The Model Y, in particular, remains a top choice due to its 300-mile range, crossover practicality, and access to Tesla’s Supercharger network. Even though Tesla CEO Elon Musk may have stirred up controversy in recent years, the Model Y continues to be a solid buy for those seeking a reliable, feature-packed EV at a much lower price.
The Model 3 also remains relevant, despite being on the market for several years. Thanks to over-the-air software updates, Tesla vehicles continue to improve over time, making even older models a great deal. With Tesla’s extensive charging network and the Model 3’s 300+ mile range, it’s still one of the best-value EVs available today.
Overall, if you’re considering a used EV, there’s never been a better time. Prices are lower than ever, and the used market is finally catching up to the demand for affordable electric cars. Whether you’re looking at a Tesla Model Y, Model 3, or another EV, these price drops mean more options at a better price point.
