Used car prices continue to fall, led by Tesla’s Model 3

(iSeeCars) — The latest iSeeCars.com analysis found used car prices were down 4.7 percent in the last 6 months, and down 8.7 percent from a year ago. The used car with the biggest price drop is the Tesla Model 3, with a 21.5 percent drop since September 2022.

Summary:

• While overall prices are down 8.7 percent, 10 models have price drops of 16-plus percent
• Infiniti QX80, Nissan Armada, Land Rover Discovery, and Tesla Model 3 prices are all down more than 19 percent from a year ago
• Electric vehicles have fallen dramatically, off 13.9 percent compared to a year ago

In September, used car prices were up 7.8 percent compared to a year earlier, but by November they were 2.1 percent below November 2021. The iSeeCars study analyzed 1.8 million used car sales between February 2022 and February 2023 to identify used car pricing trends and which models have seen the biggest price increase and biggest decrease over the past 6 and 12 months.

“The used car market has been fragmented over the past year,” said iSeeCars’ executive analyst Karl Brauer. “While prices are still higher than before the pandemic, they have consistently dropped over the past year, and at an accelerated rate in the past 6 months.”

10 Models with the Biggest Price Drops, September 2022 – February 2023

While overall prices are down 8.7 percent compared to a year ago, and 4.7 percent since September, some models have fallen farther.

“The Tesla Model 3 has lost over 20 percent of its value in the last six months, and while multiple hybrids and the Nissan Leaf are also down between 11 and 22 percent over the same period, the Model 3’s loss of value is close to double that of the next model, the Nissan Kicks,” said Brauer.

These are the cars with the biggest price drops over the past 6 months:

10 Models with the Biggest Price Drops

Looking back a full year, the Tesla Model 3 and Jaguar E-Pace continue to rank among the cars with the largest price declines, but the list also has mostly higher-priced luxury models, including two Audis, two Land Rovers and another Jaguar. The only non-luxury models are the Tesla and the Nissan Armada, which is a mechanical twin to the Infiniti QX80, both of which are down more than 20 percent.

Here are the cars with the biggest price drops over the past year:

10 Models with the Biggest Price Hikes

While the average used car is down in price, some models are fighting the trend, with prices higher than 6 and 12 months ago.

All the cars that have gone up in price over the past 6 months are luxury models, confirming the willingness of wealthier consumers to still spend over MSRP to get the vehicle they want.

Here are the cars with the biggest price hikes over the past 6 months:

When looking back a year, the model with the larger price hikes includes two electric vehicles, two hybrids, and three fuel-efficient hatchbacks, reflecting the increase in fuel prices over the past year and how that has elevated interest in fuel-efficient vehicles.

“It’s worth noting that even the vehicle with the greatest price increase over the past year, Porsche’s 911, is still only up 13 percent,” said Brauer. “This compares to the Tesla Model 3’s 21.5 percent drop over that same period, further illustrating the overall used car market’s downward movement.”

Used Hybrid Models Holding Up, Electric Vehicles Dropping Fast

As a group, hybrid vehicles are doing quite well, with prices only down about 2.1 percent compared to the market’s overall drop of 8.7 percent in the past 12 months.

“The price of fuel increased drastically between February 2022 and February 2023, increasing the value of, and demand for, fuel-sipping hybrids,” said Brauer. “Conversely, electric vehicles have fallen 13.9 percent in the past year, possibly reflecting the average consumer’s unwillingness to pay the higher price for a used EV as inflation and interest rates dampen consumer confidence.”

Coupes and Hatchbacks Are Hot, SUVs and Minivans Are Not