Used car prices keep getting cheaper — especially Teslas.
Prices for used Teslas fell significantly in January after the automaker slashed MSRPs on new models. Used electric vehicle sales overall are also picking up in general as a result of lower prices and new tax credits.
In the second half of January, used 2020 and 2021 Tesla list prices were down 4.8% compared to the beginning of the month, prior to Tesla’s announcement of price cuts, according to a new report from iSeeCars.com, a car search company.
The drop extends a downward trend in used Tesla prices that began in the fall. Lower gas prices have made purchasing an electric vehicle somewhat less compelling and high auto loan interest rates for used car purchases have brought used prices down across the board.
Used Tesla Model 3 prices fell 16.8% from September and December and then dropped another 5.2% after the price cuts, according to the report.
Price cuts on new cars like the ones recently announced from Tesla and Ford on EVs are considered rare in the auto industry, but it’s not surprising that used EV prices have fallen in tandem. Naturally, car shoppers judge how much they’re willing to pay for a used car based on what it would cost to buy a new one.
Still, it’s notable that used Teslas just became significantly more affordable. Between the beginning of January and the latter part of the month, the average price of a used Model 3 dropped by $2,354 (-5.2%), while Model Y prices fell by $2,816 (-5%).
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