The used electric vehicle (EV) market in the United States is experiencing a significant decline in prices, with the average price of a used EV dropping by $2,993 (8.8%) year-over-year to $31,110. In contrast, the overall used car market has become more expensive, with prices increasing by $630 (2.0%) to $32,317. According to a study by iSeeCars, Tesla models are bearing the brunt of the price drops, with the Model S sedan experiencing a 16% decrease in price to $46,503, and the Model Y crossover seeing a 14.2% decrease to $29,789.
Other EV models have also seen significant price drops, including the Porsche Taycan, which has decreased by 12.7% to $75,644, and the Tesla Model X, which has dropped by 8.9% to $54,004. The Kia Niro EV has also seen a decrease in price, with a 6.9% drop to $21,316. Electric vehicles make up five of the top 10 models with the biggest price drops, with four of those being Teslas.
The decline in used EV prices is attributed to multiple factors, including the increasing supply of EVs in the market and the public’s growing acceptance of electric vehicles. However, EVs are still known for their notable depreciation compared to gas-powered vehicles. According to iSeeCars Executive Analyst Karl Brauer, “being an electric vehicle and wearing the ‘Tesla’ brand appear to be a double negative” when it comes to used car values.
The overall used car market is experiencing a shortage of inventory, particularly for 1- to 5-year-old vehicles, due to reduced new car production between 2020 and 2022. This shortage has led to higher prices for used cars, with trucks, SUVs, and hybrids seeing increases in price. However, passenger cars and minivans have seen a decrease in price, with a 2.0% drop to $27,292.
The study by iSeeCars analyzed 2.4 million used cars sold in May 2024 and May 2025 to identify used car pricing trends. The findings suggest that while the used EV market is experiencing a decline in prices, the overall used car market is becoming more expensive due to low inventory levels. As the market continues to evolve, it will be interesting to see how used EV prices fluctuate in response to changes in supply and demand.