An influx of used EVs is causing prices to drop, particularly when it comes to used Teslas, according to new data from Recurrent.
The company, which sells battery health reports for used EVs, also compiles quarterly reports on used EV prices using data from partner firm Marketcheck. This latest report also includes wholesale data from BlackBook. All of this information points to growing used EV sales that are driving down prices.
As Recurrent underscores, part of reason for recent high used EV prices has been the sheer lack of vehicles on the market. Sales volumes of used EVs totaled 140,000 in the first half of the year, however—which means used EVs, as a whole, are selling more strongly than any single new EV model except the Tesla Model Y.
2022 Tesla Model 3
And Recurrent's index for overall used EV pricing has fallen 32% year over year to an average of $27,800. Average prices haven't been that low since early 2021, the company noted.
Prices appear to have risen rapidly for used EVs—by more than a third—before they peaked around mid 2022, based on other reports. There were some complicated supply-chain economics in 2022 especially, resulting in soaring EV battery cost for that year. Now the market seems to be correcting in a way that's seeing some used Tesla models lose value faster than other EVs.
The used Tesla Model 3 has fallen $9,000 in value since 2021, while the Bolt EV has fallen $1,500, as the used EV market is converging around a more affordable price point once again.
2022 Tesla Model 3
In addition, iSeeCars, with its periodic surveys of asking prices from a wide range of dealership inventories and sales sites, sees that used EV prices are down 19.5% for used EVs and about 10% for new EVs over the past 11 months. Considering financing and loan rates, that still means an improvement in affordability on the EV front.
Despite price cuts, Tesla's share of the U.S. EV market has shrunk. That said, it's still selling more cars, with even more resulting used EVs coming in a few years. And these long range models may hold more value in the long term, another study has suggested.