Used and new car prices are somewhat separate, but they do tend to rise and fall together at times. That was the case over the last two years, as Tesla started cutting new-car prices, causing values on the used market to drop like a stone. The story is similar in 2024, as new data from CarGurus shows that prices for the automaker’s EVs have declined by deep double-digit percentages across the board since last year.
The Tesla Model S saw the most significant drop between 2023 and 2024, with used pricing falling 34.4 percent. All models tumbled by more than 27 percent:
- Tesla Roadster: -27.3% used price year-over-year
- Tesla Model 3: -31.5%
- Tesla Model X: -32.4%
- Tesla Model Y: -34.1%
- Tesla Model S: -34.4 percent
These numbers likely feel like salt in the wound for Tesla owners, whose used car values have already tanked over the last year. While it points to less success on the used market, it’s also related to the automaker’s ongoing price changes, as the Model Y recently dropped to below $30,000 to start. The price drops also speak to buyers’ reluctance to invest big money in a used EV when they have concerns about battery longevity and charging, though Tesla’s warranty is pretty robust.
It's easy to poke fun at Tesla for this issue, but it’s far from being the only automaker with falling used values. Recurrent recently found that popular used EV prices have fallen 27 percent over the past year, bringing them closer to comparable gas vehicles. That could help boost demand, which should slow the price declines, which Recurrent said should stabilize prices by the end of the second quarter of 2024.
If you’re shopping for an EV, a used model could be a great deal. Research has shown that battery replacements aren’t as common as many detractors would have you believe, and the price drops make them a much more compelling value. Additionally, many used models qualify for EV tax credits applied at the time of the sale, making them even more affordable.
