But used electric vehicles are going for bargain prices
of ConsumerAffairsJune 18, 2025
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The average 1- to 5-year-old used car costs $32,317, up 2% ($630) from a year ago
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The average 1- to 5-year-old used electric vehicle price continues to fall, down 8.8% ($2,993) over the past year to $31,110
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The Tesla brand had the largest used car price decline, dropping 8.4% ($2,809) in the past year
After a prolonged slump, used car prices steadily rising, with demand increasing in the wake of tariffs on new cars. According to a new study by iSeeCars, analyzing 2.4 million vehicles, the average price of a 1- to 5-year-old used car rose to $32,317 in May 2025, a 2% year-over-year increase of $630. This marks the third consecutive monthly uptick, following gains of $317 in March and $599 in April.
While modest, these increases may reflect a broader trend that signals recovery in the used vehicle market after prices dropped sharply throughout 2023 and early 2024 as the industry recovered from the disruptions caused by the pandemic.
“Reduced new car production between 2020 and 2022, along with lease customers choosing to buy their vehicles, has severely constrained the supply of 1- to 5-year-old used cars,” said iSeeCars Executive Analyst Karl Brauer.
EV prices are still falling
Despite the overall market rebound, used electric vehicles (EVs) continue to depreciatethough the worst may be behind them. The average price of a 1- to 5-year-old used EV dropped 8.8% year-over-year to $31,110 in May 2025, a loss of nearly $3,000. However, thats a far cry from the 30%+ drop seen a year earlier, suggesting the EV market may be reaching equilibrium.
“While year-over-year EV prices are still in decline, their average market price has been relatively flat over the past 12 months,” Brauer said.
Tesla led the pack in terms of brand-level depreciation. Used Tesla prices fell 8.4%, or $2,809, on average. In fact, all four of Teslas main models made the top 10 list for the steepest year-over-year price declines:
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Tesla Model S: -16.0% ($8,837)
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Tesla Model Y: -14.2% ($4,945)
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Tesla Model 3: -10.8% ($3,078)
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Tesla Model X: -8.9% ($5,292)
Being an electric vehicle and wearing the Tesla brand appears to be a double negative, Brauer said.
While many EVs and family vehicles lost value, others soared. The BMW 4 Series led all vehicles in price growth, with a 19.5% jump equating to $6,648. Close behind were the INFINITI QX60 (up 16.5%) and the Porsche 718 Boxster (up 15.7%).
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