Study - Used EV Values In Freefall - “10X More Than Gas Vehicles”

The value of used electric vehicles is in freefall. A new study by iSeeCars reveals that the value of used electric vehicles has plummeted by 31.8% in the last year. Meanwhile, the value of used conventionally powered vehicles has seen no meaningful decline over the same period. The study summary says that the decline in values of EVs is "...10 times faster than gasoline models over the past year." (We should note that we don't like to use multiples when describing percent declines.)

The study looked at the average value of used vehicles in February 2023 vs. February 2024. During this period, the average used conventionally-powered vehicle saw a decline of about 3%. Hybrids declined in value by 6.5%. By contrast, the average price of EVs declined by a whopping 31.8%. Interestingly, the average price of a used vehicle is now similar, regardless of its powertrain type. All types average around $30,750. “Shoppers deciding between a traditional car, a hybrid, or an EV, can now make that decision based on factors beyond price, such as range and convenience,” said Karl Brauer, iSeeCars Executive Analyst.

Just 12 months ago, the average price of a used EV was over $45,000. Today, the average is $30,904. This is fantastic news for those shopping for a used EV. It is terrible news for those who presently own a used EV they may wish to trade in or sell. 

On a brand basis, Tesla has seen the steepest decline in valuations. According to the study, Tesla vehicles as a whole have dropped in value by 29% over the past year. By contrast, GMC and Chevrolet have seen valuations climb slightly. Toyota has seen a 3.7% drop overall during the past year. “Elon’s desire to maintain new Tesla sales through price cuts had a very destructive impact on the brand's residual values,” said Mr. Brauer.

On a model basis, eight of the top 10 vehicles with the steepest decline in valuations are EVs. The Chevrolet Bolt EV has seen the most drop in value at just over 30%. The Nissan Leaf and Kia Niro EV are very close to that same drop in percent valuation. Tesla’s Model 3 declined by 24.1%. The model with the biggest dollar drop in value seems to be the Tesla Model X, which this study says has dropped in value by about $20K in just one year. 

The study provides more proof that enthusiasm for electric vehicles has cooled. Empirical evidence like Volvo’s U.S. battery-electric vehicle deliveries dropping by nearly 60% in February and multiple manufacturers slowing EV production to better match waning demand is now becoming easier and easier to find. 

About the Study: Researchers at iSeeCars analyzed over 1.8 million 1- to 5-year-old used cars sold in February 2023 and 2024. The average listing prices of each car model were compared between the two time periods, and the differences were expressed as both a percentage difference from the 2023 price as well as a dollar difference. Heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2023 model year, and vehicles with fewer than four of the last five model years for each period were excluded from further analysis.

You can view the full iSeeCars study results here. 
 

John Goreham is an experienced New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. In addition to his eleven years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can follow John on Twitter, and connect with him at Linkedin.

Chart of used EV changes by iSeeCars.com