Rapid Depreciation in the Used Car Market: A Closer Look
The post-pandemic used car market has seen a significant shift, with certain models experiencing rapid depreciation. According to an iSeeCars analysis, the average used car price rose slightly by 1.0 percent ($317) between March 2024 and March 2025. However, specific models deviated from this trend, losing substantial value.
The Biggest Losers in the Used Car Market
- Tesla Model S: The pioneering electric sedan saw its average used price plummet by 17.2 percent, representing an average loss of $9,944 over the last 12 months. As of March 2025, the average Model S is listed at $47,931.
- Porsche Taycan: Experienced the largest drop in terms of sticker price, losing $13,422 (15.1 percent) over the year, with an average price of $75,407 in March 2025.
- Ford Explorer Hybrid: Saw a 14.1 percent depreciation ($5,136), with an average price of $31,228.
- BMW 5 Series Hybrid: Fell by 13.9 percent ($5,557) to $34,375.
- Tesla Model Y: Lost 13.1 percent ($4,634) of its value, averaging $30,611.
Brand-Wide Trends in Depreciation
Tesla led the pack with an average decline of 10.1 percent ($3,541) across its lineup. Other brands experiencing significant depreciation include:
- Chrysler: -8.9 percent
- Maserati: -8.6 percent
- Genesis: -6.5 percent
- Dodge: -4.7 percent
Understanding the Decline
The depreciation of these models may be attributed to various factors, including price cuts, increased competition, and shifting consumer preferences in the EV and hybrid segments. iSeeCars executive analyst Karl Brauer noted that Tesla’s strategy of cutting new car prices to maintain sales growth ultimately affected used car prices, driving them down rapidly.
Opportunities for Buyers
Despite the overall slight increase in used car prices and the threat of tariffs, buyers can still find deals with thorough research. The market stabilization presents opportunities to purchase vehicles at lower prices, particularly for models like Tesla, which has seen significant declines.
Source: iSeeCars
