While the average price of used cars in the U.S. is rising, Tesla models are bucking the trend with steep year-over-year declines.
Used Car Prices Are Rising — But Not for Tesla
Used car prices in the U.S. are generally on the upswing in 2025. According to a new study by iSeeCars analyzing over 2.4 million vehicles between one and five years old, the average used car now costs $32,317, up from $30,673 in June 2024 — a 5.4% increase.
But not all brands are enjoying this rebound. In fact, Tesla leads the list of vehicles with the sharpest price drops, with several of its models losing significant value over the past year.
Tesla Models Dominate the Biggest Used Car Price Drops
Here are the top used cars that have seen the steepest year-over-year price declines from May 2024 to May 2025:
| Rank | Model | Avg. Price | Price Change ($) | Price Change (%) |
|---|---|---|---|---|
| 1 | Tesla Model S | $46,503 | -$8,837 | -16.0% |
| 2 | Tesla Model Y | $29,789 | -$4,945 | -14.2% |
| 3 | Porsche Taycan | $75,644 | -$10,998 | -12.7% |
| 4 | Ford Explorer Hybrid | $31,811 | -$4,044 | -11.3% |
| 5 | Tesla Model 3 | $25,361 | -$3,078 | -10.8% |
The Tesla Model S tops the list with a 16% drop, representing an $8,837 loss. Other Tesla models — the Model Y, Model 3, and Model X — also make the top 10, suggesting a broader brand trend.
Why Are Tesla’s Used Car Prices Dropping?
Several factors are influencing Tesla’s declining resale value:
- EV Market Saturation: As more electric vehicles (EVs) enter the market, resale values are being impacted across the board.
- Price Cuts on New Teslas: Tesla has frequently slashed new car prices, making used models less attractive.
- Brand Volatility: CEO Elon Musk’s public persona and recent headlines may be influencing consumer sentiment.
- EV Depreciation Trends: EVs still face steeper depreciation rates than gas-powered vehicles, especially as battery technology rapidly improves.
According to Karl Brauer, executive analyst at iSeeCars, “Being an electric vehicle and wearing the ‘Tesla’ brand appears to be a double negative.”
Used Electric Vehicles Still Declining, But Slower Than Before
The study also reveals that while EV resale values are still dropping, the rate of decline has slowed. In June 2024, used EVs fell by 29.1% year-over-year. As of May 2025, the annual drop is 8.8%, or $2,993 on average.
| Month | Avg. Used EV Price | YoY Difference ($) | YoY Difference (%) |
|---|---|---|---|
| 2025-May | $31,110 | -$2,993 | -8.8% |
| 2025-April | $31,372 | -$2,941 | -8.6% |
| 2024-June | $28,595 | -$11,764 | -29.1% |
Car Brands with the Biggest Declines in Resale Value
Tesla also leads when it comes to brand-wide depreciation.
| Rank | Brand | Avg. Price | Price Change ($) | Price Change (%) |
|---|---|---|---|---|
| 1 | Tesla | $30,708 | -$2,809 | -8.4% |
| 2 | Chrysler | $25,632 | -$1,776 | -6.5% |
| 3 | Dodge | $33,763 | -$2,112 | -5.9% |
| 4 | Genesis | $33,769 | -$1,894 | -5.3% |
| 5 | Maserati | $43,821 | -$2,099 | -4.6% |
Luxury brands like Genesis, Maserati, and Audi are also seeing value erosion, although not as sharply as Tesla.
Which Models Still Offer Strong Resale Value?
While this study focuses on depreciation, other vehicles — especially hybrids and fuel-efficient gas-powered models — are holding their value or appreciating due to continued demand and limited inventory.
What This Means for Buyers and Sellers
- Buyers: Now might be a good time to shop for a used Tesla or other EVs, especially if long-term ownership is planned.
- Sellers: Be aware of shifting market dynamics. If you own a Tesla, timing your sale might help minimize losses.
Conclusion: Is Tesla Losing Its Used Market Edge?
Tesla once enjoyed near-mythical resale value among electric car brands, but 2025 data paints a different picture. While the overall used car market is growing, Tesla’s models are falling behind in value retention — a trend that could reshape the brand’s position in both new and used car markets.
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