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Used Tesla Model 3 Prices Drop 22% In Just Six Months

New data shows that the Tesla Model 3 is a used car with values dropping like a stone. Prices have dropped by five digits in just six months.

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The Model 3 is a smashing success for Tesla. Its combination of an attainable price point for many and a reputation as an EV that works well in the real world has propelled it to the number one spot among all electrified sedans. One side effect of this success is that there are now many used Model 3s for sale. And used Model 3 values are dropping rapidly.

Used car value data chart including Tesla Model 3 courtesy of iSeeCars.com

The latest data from iSeeCars shows that the Tesla Model 3 is the vehicle with the fastest decline in used car prices in America. Over the past six months, the average used price of a Model 3 has dropped by 21.5%. That equates to an $11,302 reduction in price. While used car prices in general, have cooled off, the Model 3 is an outlier in terms of its steep drop in value. “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 iSeeCars’ executive analyst Karl Brauer

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The average price of a used Model 3 has dropped from about $53K in September to just $41,337 in February. Interestingly, vehicles with premium price levels have actually seen increases. Models from Mercedes-Benz, BMW, Cadillac, and Maserati all saw used values climb over the same period during which the Tesla Model 3 saw its steep decline. “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.”

By contrast to used electric vehicles, which have seen double-digit declines in value over the past six months, used hybrids have, for the most part, retained their values, dropping on average only 2.1%. “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.”

Have you shopped for a used Tesla Model 3 recently? If so, tell us what you found the marketplace to look like in our comments section below.

Image of Tesla Model 3 courtesy of Tesla, Inc. media support. Used car value data chart including Tesla Model 3 courtesy of iSeeCars.com.

John Goreham is an experienced New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. In addition to his ten years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can follow John on Twitter, and TikTok @ToknCars, and view his credentials at Linkedin

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Comments

Alan G (not verified)    March 21, 2023 - 11:39AM

The culprit for the precipice drop is value is obviously the steep drop in price for a new Tesla. What pay the average price for a used model 3 at $56K when you can buy the Performance trim new at $55K?

I feel for the people trying to sell their used cars, but I bought a new M3 last month.