Used electric vehicles are depreciating 10 times faster than their gas-powered counterparts, according to a new study from iSeeCars.com. The average price of a used electric vehicle plummeted 31.8% over the last 12 months, compared with a 3.6% decline overall.

What You Need To Know

  • Used electric vehicle prices have fallen almost 10 times faster than for gas-powered cars over the past 12 months

  • Used EV prices fell 31.8% in February compared with a year earlier; used gas-powered car prices fell 3.6% over the same timeframe

  • The price of a used EV, hybrid or gas-powered car is now roughly the same, at about $31,000

  • Used vehicle prices are expected to remain flat through the fall, according to an analysis from iSeeCars.com

“Elon Musk’s initial price reductions on new Teslas were already impacting EV values a year ago,” iSeeCars Executive Analyst Karl Brauer said in a statement. “But his repeated price cuts kept pushing used Tesla prices down, which spread to all electric vehicles, creating weakness across the used EV market.”

Last year, Tesla dropped the price on its standard Model 3 sedan by about 17% and its Model Y long-range version by about 26%. Last month, the company temporarily cut prices on two versions of its Model Y by another 2%.

The Chevrolet Bolt leads the electric vehicles that have seen the largest price drops over the past year. The Nissan Leaf, Kia Niro, Hyundai Kona and Tesla Model X round out the top five. The Tesla Model 3 and Model S were also in the top 10.

The dramatic drop in the prices of used hybrids and electric vehicles has leveled the playing field among the three powertrains. An average used EV in February cost $30,904, compared with $30,489 for a used hybrid and $31,169 for a used gas-powered vehicle.

“Used car shoppers with a $31,000 budget have access to the majority of models today, regardless of drivetrain,” Brauer said. “But they’re paying approximately 50% more for the average used car than they did before the pandemic.”

Prior to COVID, the average used car price point was about $20,000.

Among brands, Tesla has seen the biggest year-over-year used vehicle price declines, followed by Alfa Romeo, Maserati, Lincoln and Volvo.

Some used car models, however, are seeing prices increase. The price of a used Porsche 718 Cayman increased 29.4% in February compared with a year earlier. The BMW 5 series (hybrid), Volvo S90, Porsche 718 Boxster and BMW 4 series (sedan) rounded out the top five used vehicles that increased in value over the past 12 months.