It was only a year ago that electric vehicle owners were flipping their cars for a profit, but those days appear to be over. Used EV prices fell 29.5% in June compared with a year earlier, according to a new study from automotive research firm, iSeeCars.

What You Need To Know

  • Used electric vehicle prices fell 29.5% in June compared with a year earlier, according to a new study from iSeeCars

  • The Tesla Model 3 saw the largest drop in value, falling 30.5%, or $16,258, compared with June 2022

  • The average used vehicle price has decreased 3.6%, or $1,237, over the same time period

  • The Nissan Leaf, Tesla Model X and Tesla Model S have also seen price drops of more than 19%

While the average used car price fell 3.6%, or $1,237, last month compared with a year earlier, used values for Teslas in particular are cratering. The Tesla Model 3 saw the largest decline in used value over the past 12 months – down 30.5%, or $16,258, compared with a year ago. The Tesla Model X, Nissan Leaf and Tesla Model S all saw price drops of more than 19% in June.

“Used car prices overall are stabilizing,” iSeeCars Executive Analyst Karl Brauer said in a statement. “But there’s been a massive drop in used electric vehicle values this year, with bigger drops every month and no indication of any floor in sight.”

In January, used EV prices fell 8.8% compared with a year earlier. The value declines accelerated to 13.8% in February, 16.8% in March, 24% in April and 28.9% in May before suffering their worst devaluation last month.

Record high gas prices resulting from the war in Ukraine last summer prompted an unprecedented demand for electric vehicles that auto makers could not meet due to supply chain challenges. Last June, EV buyers were willing to pay thousands of dollars more for a used vehicle than the original owner paid to buy it new, but supply chain challenges have since eased.

“Pricing for used electric vehicles, led by Tesla, has simply collapsed in 2023, falling farther and faster each month since January,” Brauer said. “With Tesla cutting prices on new models, its used EV values have tumbled. And because Tesla makes up the bulk of the used EV market, the dramatic drop in Tesla values has impacted the entire category.”

Some used cars, however, are still seeing price gains. A used Mercedes-Benz SL-Class has increased 14.3% (or $12,352) compared with a year ago. The Fiat 500X, Chevrolet Suburban, Porsche 911 Convertible and Porsche 718 Cayman round out the top five used cars that have seen the biggest price gains over the last 12 months due to “ongoing demand for performance models, SUVs and trucks,” the report found.

For its analysis, iSeeCars looked at more than 1.8 million one-to-five-year-old used cars from June 2022 and 2023 and compared the average listing prices of each car model for the two periods.