Used cars drop in value, and EVs are leading the charge

According to a study from iseecars.com published this month, used car prices have slumped somewhat with the EV market especially being dragged down by the Tesla Model 3’s 24.8% drop compared to last September. The rest of the entry-level EVs (Bolt, Niro, Leaf) that have recently become used cars have also seen dramatic depreciation, on par with luxury vehicles like the Maserati Levante and Mercedes-Benz AMG GT over the same period.
While it’s tempting to blame rapid EV depreciation on a cooled EV market in general, rapidly advancing EV tech means even 2-or-3 year old electric cars are no longer state of the art. Overall, this means that it’s getting much cheaper to buy a late-model EV, and that the used car market in general continues to heal from Covid-era pricing.
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According to data from CarGurus, that healing is staccato rather than steady. Over the past month CarGurus has seen used car prices up just under half a percent, likely part of a continuing overall downward trend. While the trend is certainly downward, there are still used vehicles going up, though by small margins.
From the iseecars.com data, the top year-over-year price boosts in the used market have been for the Porsche 718 (21.4%), Volvo S90 (16.3%), and Chevrolet Camaro (8.4%) respectively. The overall market is still finding its way towards an old normal, but the shift towards electrification is wreaking havoc on the prices of outbound ICE performance cars, as that 718 won’t be four-cylinder powered for much longer. The Camaro is another combustion enthusiast machine felled by corporate ax, with abounding rumors of an electric return in one form or another.
CarGurus’ monthly analysis of the few used cars up in price is also interesting, with a brand new EV in the top three. Between the 3.4% rise of the recently out-of-production Chrysler 300 and the 2.2% rise of the recently updated Toyota Camry, the Honda Prologue has seen used prices jump 3.2%. Potentially a sign of scalpers attempting to exploit unfilled demand for a vehicle whose production hasn’t quite caught up yet. As the market heals, it appears the circumstances of a vehicle matter at least as much as what powers it.