FYI: Despite price drops in 2023, the Tesla Model Y remains a top contender in the used EV market, maintaining strong demand and appeal.
Tesla Model Y: The Resilient Leader of Used Electric Vehicles
At this point, the Tesla Model Y is akin to the iPhone of the electric car world. It seems ubiquitous, continues to outperform many competitors, and even if it’s not the latest or most intriguing model, it remains exceptionally reliable.
No surprise then, that the Model Y continues to dominate the U.S. EV sales charts even as Tesla’s overall sales show signs of slowing and new competitors emerge. As confirmed by iSeeCars data requested by InsideEVs, the Model Y also holds its ground impressively well in the used market.
Used EV Market Trends
Recent analysis of iSeeCars’ data reveals several EV models, with the Tesla Model 3 showing one of the steepest depreciation rates. The Model 3’s average price has plummeted to approximately $26,000, which is $8,500 less than it was a year ago. Other significant decliners include the Nissan Leaf, Hyundai Kona Electric, Kia Niro EV, and Chevrolet Bolt.
Tesla Model Y’s Performance in the Used Market
Despite the overall trend of depreciating EV prices, the Tesla Model Y continues to perform strongly. iSeeCars’ Executive Analyst Karl Brauer noted the Model Y was the 16th best-selling used car in August, encompassing all vehicle types, including EVs, gas cars, and hybrids.
"It’s one of only two electric cars in the top 20, confirming the Model Y’s ongoing appeal even as used EVs are losing value and selling slower," Brauer said. "By contrast, electric vehicles make up half of the 20 slowest-selling used cars, further illustrating how well the Model Y is holding up in an EV-unfriendly used-car market."
Significant Price Drops
However, the Model Y’s prices have also seen a decline. For one- to three-year-old vehicles, the Model Y has experienced a substantial year-over-year price drop. According to iSeeCars, the average price for a Model Y decreased from $44,979 in August 2023 to $33,310 in August 2024—a 25.9% drop. This ties the Model Y with the Audi E-Tron Sportback for the largest percentage drop among used EVs.
A Look at the Data
Here’s a snapshot of used EV price drops, showcasing where the Model Y stands:
- Tesla Model Y: $44,979 to $33,310 (-$11,670, -25.9%)
- Audi E-Tron Sportback: $51,710 to $38,298 (-$13,412, -25.9%)
- Tesla Model 3: $35,700 to $26,656 (-$9,044, -25.3%)
- Chevrolet Bolt EV: $23,487 to $18,685 (-$4,802, -20.4%)
- Nissan LEAF: $20,862 to $16,852 (-$4,010, -19.2%)
- Kia Niro EV: $27,900 to $22,740 (-$5,160, -18.5%)
- Hyundai Kona Electric: $26,500 to $21,653 (-$4,847, -18.3%)
- Tesla Model S: $70,398 to $58,571 (-$11,827, -16.8%)
- MINI Hardtop 2 Door: $26,375 to $22,399 (-$3,976, -15.1%)
- Tesla Model X: $74,057 to $67,321 (-$6,737, -9.1%)
Key Takeaways
The rapid price cuts implemented by Tesla throughout 2023 have significantly impacted the entire EV market. While this has been a tough break for those who purchased a Model Y in 2022 or earlier due to steep depreciation, it has created great opportunities for prospective buyers in the used market.
Purchasing a used Model Y is now more compelling than ever. Numerous well-maintained, near-new examples are available, offering excellent value, especially considering the vehicle’s crossover practicality, substantial range options, and access to Tesla’s unrivaled Supercharger network.
Future Competition
However, the landscape is evolving swiftly. Competitors like the 2025 Hyundai Ioniq 5 and the Ford Mustang Mach-E are starting to offer Tesla-like features such as Supercharger access. General Motors is also anticipated to join this trend shortly.
In conclusion, while today’s market dynamics present great opportunities for used EV buyers, the Model Y remains a standout choice. For more on the EV market and trends, reach out to us at tips@automotive.fyi, or follow us on Twitter @automotivefyi.
William Kouch, Editor of Automotive.fyi
