Prices for used electric vehicles have fallen far below those for gasoline vehicles

As electric vehicle manufacturers cut prices on new models, the price of used electric vehicles has fallen 11% below that of gasoline models, according to data from iSeeCars.

A study of 1.6 million used cars (all between one and five years old) sold between August 2023 and 2024 found that the Tesla Model 3 had the largest drop in value of any vehicle last year, a 24.8% decline. Other electric vehicles saw smaller but still significant drops in value.

The good news is that the price decline in used electric vehicles is not as severe as it was late last year and early this year, which could mean we are almost at the end of the long downward trend.

“The 25 percent drop in used electric vehicle prices over the past year is still several times higher than gasoline or hybrid cars,” Karl Brauer, senior analyst at iSeeCars, said in a statement. “But it is lower than the 30 to 40 percent declines we saw in late 2023 and the first half of 2024, suggesting that average used electric vehicle prices could soon stabilize at around $25,000.”

In August, the average price of a used gasoline vehicle was $30,292, while that of a used electric vehicle was $26,839 – a difference of 11.4%. For comparison, last year electric vehicles sold for 12.1% more than gasoline vehicles.

Here's a look at the cars with the biggest year-on-year price drops (as of August 2024):