(iSeeCars) — As noted in our recent used car pricing report, used car values are consistently declining for the first time in over two years. But even as the values for used cars are dropping across the board, Tesla models experienced some of the biggest price drops in recent months. Used Tesla Model 3 prices, for example, were down 16.8 percent between September and December 2022.
- The average late-year Tesla used car value has dropped 4.8 percent in just the past month
- This compares to a 1.5 percent drop across all late-year used cars in the same time period
- Plug-in hybrid vehicles are also declining in value at an accelerated rate
These declines in Tesla values only accelerated when the company announced substantial price reductions for new Tesla models on January 13th, 2023. These latest price cuts were done to better align Tesla’s pricing with recent government legislation, though falling sales volume and rising inventory levels, across the industry and for Tesla specifically, suggest these cuts were also made to ensure new Teslas continue to move in a softening economy.
Used Tesla Values Take a Big Hit in January
How have these cuts in new Tesla prices impacted used Tesla values? iSeeCars analyzed Tesla used car prices between January 3rd and January 11th, the day before the price cuts were announced. Comparing that to used Tesla prices between January 15th and January 31st, immediately after the announcement, iSeeCars confirmed a 4.8 percent drop in Tesla values.
Used Model 3 values led the drop, down 5.2 percent after the price reductions, while used Model X prices declined the least, down 3.9 percent. These drops manifested as price reductions of $2,354 on the Model 3, $2,816 on the Model Y, $3,370 on the Model X, and $4,626 on the Model S, all in less than a month.
|Change in Average Price of Used Tesla Models Before and After Jan 12th Price Drop Announcement – iSeeCars Study|
|Model||Pre-Announcement Avg Price||Post-Announcement Avg Price||% Change||$ Change|
|Tesla Model 3||$44,987||$42,633||-5.2%||-$2,354|
|Tesla Model S||$90,035||$85,409||-5.1%||-$4,626|
|Tesla Model X||$86,828||$83,457||-3.9%||-$3,370|
|Tesla Model Y||$56,786||$53,970||-5.0%||-$2,816|
It’s worth noting that search activity for Teslas skyrocketed in this same timeframe, up 21.3 percent against an average of 6.5 percent for all used cars on iSeeCars.com.
Non-Traditional/Alternative Fuel Vehicles Dropping Faster than Internal Combustion Cars
Looking beyond Tesla, prices of alternative fuel vehicles dropped faster than traditional gasoline models in the past month, with plug-in hybrids leading the decline at 3.8 percent. Note that electric cars, with a 1.8 percent drop, are only slightly ahead of the industry average, further illustrating Tesla’s substantial drop in value versus the overall EV market.
|Change in Average Price of Used Non-Tesla Models by Fuel Type Before and After Jan 12th Price Drop Announcement – iSeeCars Study|
|Vehicle Group||Pre-Announcement Avg Price||Post-Announcement Avg Price||% Change||$ Change|
|Plug-in Hybrid Vehicles||$54,158||$52,107||-3.8%||-$2,051|
|Alternative Fuel Vehicles||$42,950||$41,685||-2.9%||-$1,265|
iSeeCars analyzed over 1.4 million used cars from model years 2020 – 2021 listed for sale on iSeeCars.com between January 3, 2023 – January 11, 2023 (pre-announcement period) and January 15, 2023 – January 31, 2023 (post-announcement period). The average prices of each Tesla model, as well as non-Tesla models by fuel type, were compared between the two periods.
iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars free VIN check reports and Best Cars rankings. iSeeCars.com has saved users over $372 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.
This article, Tesla Prices Are Falling Fast – Three Times Faster Than the Market Average, originally appeared on iSeeCars.com.