Shocking Price Drops: These Are Hottest Used Electric Vehicle D…

Tesla

The turbulent conditions in the new car market may be calming down at last, while the price of used vehicles are plummeting. A recent study conducted by iSeeCars.com has uncovered a decrease in the average prices of used cars by 3.6 percent in June compared to the previous year.

The biggest drop was observed in the EV sector, which is great news for those in the market for a pre-owned electric car.

The decline in prices is indicative of a larger trend. Similar decreases of 2.9 percent in May and 3.6 percent in April were also observed. To draw these conclusions, iSeeCars examined a vast dataset of 1.8 million used vehicles that were 1 to 5 years old.

We now have a better understanding of the current trends in car pricing and used EV buyers should pay close attention. Smart consumers are seeing incredible value in the pre-owned electric car market.

Related: 10 Fun Used Sports Cars Under $30K That Will Soon Skyrocket In Value

Tesla

Following the Ukraine conflict in Spring 2022, a global increase in oil prices greatly impacted consumer habits. In light of these events, electric vehicles became a refuge from unpredictable and inflated gas prices. A year later, the situation has changed significantly. Fuel prices have reached a state of stability, and there has also been an increase in interest rates.

These economic shifts have caused a change in how consumers approach buying vehicles. People are now being more careful and thoughtful in their choices, taking the time to consider all the options to make sure they get the best value for their money when purchasing a car.

The prices of used electric vehicles are now experiencing a significant drop. When comparing the prices from the previous year, the data shows a remarkable 29.5% drop in June alone, continuing a trend of monthly declines.

iSeeCar’s data from the previous months sees a drop of 28.9% in May, 24% in April, and 16.8% in March. This is now a very interesting moment for prospective car buyers, as this trend opens up the opportunity for those thinking about switching to a more environmentally friendly vehicle. Used EVs are now much more affordable than they have been in recent years.

The numbers paint a much different story than a year ago when electric vehicle prices were rising at a pace faster than the average used car. However, they are now dropping almost ten times faster than the average used vehicle, highlighting a significant change in the supply and demand dynamics of the electric vehicle market.

Karl Brauer, Executive Analyst at iSeeCars, described the sharp decline in used electric vehicle prices as a “free-fall.”

The steep decline in the value of used EVs can largely be attributed to Tesla. The company recently reduced prices on its new models, which impact the prices of its used vehicles. Due to Tesla’s strong presence in the used electric vehicle segment, the considerable depreciation in Tesla’s prices has had a ripple effect, influencing the whole sector.

Related: 10 Cheapest New Cars Under $25,000 In 2023

Nissan

Among the vehicles seeing the most noteworthy decreases in price, six electric and hybrid models stand out. Tesla’s impact is so substantial that it claims three out of the top four spots in terms of used car price reductions. The fourth position is held by the Nissan LEAF.

The Tesla Model 3 experienced the most significant drop, with a striking decline of 30.5%. On average, prices of used Model 3s fell by a substantial $16,258. Its sibling, the Model X, faced a decrease of 21.3%. The third Tesla on the list, the Model S, saw a notable 19% reduction in price. The Nissan LEAF also felt the sting of market changes, experiencing a 19.2% reduction in price.

As mentioned, a few hybrid vehicles also made the cut. Among them, the Hyundai Ioniq Hybrid experienced an average decrease in value of $3,893, resulting in a reduction of 16.2%. The BMW 5 Series PHEV also faced a price drop with an average decline of 15.5%.

The influx of newer electric vehicles in the past few years is significantly shifting the EV market. Models from Tesla and Nissan are now finding it harder to maintain their appeal. The fast-paced innovation and constant introduction of new contenders have made these older models seem less competitive and less attractive to savvy consumers.

The dramatic price drops of these top models, particularly those from Tesla, serve as a barometer for the broader market transition currently underway.

Related: 10 Overpriced Economy SUVs With Luxury Car Prices

Stellantis

While the car market is showing signs of stabilization, prices remain considerably higher than their pre-pandemic levels. It is expected that this inflated state will continue throughout 2023. Although the general trend in the market suggests decreasing prices, this pattern doesn’t apply to all used cars. There are a few noteworthy exceptions to this trend, with certain used cars maintaining or even increasing their value.

Certain premium models, along with the Chevrolet Suburban and Nissan Frontier, have experienced a rise in their value since June 2022. These models are bucking the trend, underscoring the fact that consumer appetite for luxury, performance, and utility vehicles like trucks and SUVs continues to be high.

According to the findings from iSeeCars, the Mercedes-Benz SL-Class takes the lead in price gains, with an average increase of $12,352. This is a significant 14.3% rise in its value. The Fiat 500X also saw its value ascend, with a 6.5% increase.

Close behind, the Chevrolet Suburban showed a noteworthy 6.2% upward adjustment in price. Luxury sports cars also found a spot on the list, with the Porsche 911 Convertible and the Porsche 718 Cayman appreciating 5.05% and 4.7% respectively.

Tesla

When it comes to determining which car retains its value the best, the Tesla Model 3 continues to shine. Despite the aforementioned price decrease, the Model 3 still holds its value better than any other electric vehicle currently available. Its five-year resale sits at 51.8%.

Just a year ago, it would have been entirely possible to sell a used Tesla Model 3 for more than you originally paid for. Even with a 30.5% decrease in used Model 3 prices, the average price is still around $37,023 as of June 2023. This is not too far off from the original MSRP range of $40,240 to $53,240.

The used electric vehicle market is experiencing a dynamic period, with things unlikely to settle down in the near future. As we navigate through 2023, it will be fascinating to see how these trends continue to evolve in response to shifts in consumer preference and the ever-growing selection of electric vehicles on the market.

Source: iSeeCars.com