--- title: Prices for Used Teslas and Other EVs Are Dropping More Than Gas-Powered Cars description: Used Tesla prices fell nearly 5% after the EV maker slashed MSRPs in January — a much bigger drop than other EVs and gas-powered cars. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 597 covers: - Shopping - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Shopping - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-02-06T18:23:59.000Z' modified: '2024-01-10T14:34:07.000Z' section: Shopping tags: - cars - News word_count: 500 canonical: https://money.com/used-tesla-prices-gas-powered-cars/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![CarMax Auto Dealership Tesla and Mustang Mach-E display](https://img.money.com/2023/02/News-Used-EV-Car-Prices-Drop.jpg) Used car prices keep getting cheaper — especially Teslas. Prices for used Teslas fell significantly in January after the automaker [slashed MSRPs](https://money.com/ev-price-war-tesla-ford/) on new models. Used electric vehicle sales overall are also picking up in general as a result of lower prices and new [tax credits](https://money.com/2023-ev-tax-credits-save-7500/). In the second half of January, used 2020 and 2021 [Tesla](https://money.com/how-to-buy-tesla-stock/) list prices were down 4.8% compared to the beginning of the month, prior to Tesla’s announcement of price cuts, according to a new [report](https://www.iseecars.com/tesla-pricing-study) from iSeeCars.com, a car search company. The drop extends a downward trend in used Tesla prices that began in the fall. Lower [gas prices](https://money.com/gas-prices-lower-2023-forecasts/) have made purchasing an electric vehicle somewhat less compelling and high [auto loan interest rates](https://money.com/best-auto-loan-rates/) for used car purchases [have brought used prices down](https://money.com/used-car-prices-decrease-2023-forecast/) across the board. Used Tesla Model 3 prices fell 16.8% from September and December and then dropped another 5.2% after the price cuts, according to the report. ## Why it matters Price cuts on new cars like the ones recently announced from [Tesla and Ford on EVs](https://money.com/ev-price-war-tesla-ford/) are considered rare in the auto industry, but it’s not surprising that used EV prices have fallen in tandem. Naturally, car shoppers judge how much they’re willing to pay for a used car based on what it would cost to buy a new one. Still, it’s notable that used Teslas just became significantly more affordable. Between the beginning of January and the latter part of the month, the average price of a used Model 3 dropped by $2,354 (-5.2%), while Model Y prices fell by $2,816 (-5%). - During the same time period, the average price of a used electric vehicle was down $924 (-1.8%). The new tax credits can make the price of a used EV up to $4,000 cheaper, but there are some key restrictions, including a max purchase price of $25,000 that excludes many used EVs. - The average price of used plug-in hybrids, which are also eligible for tax credits, declined by 3.8% in January, a steeper decline than the drop in used EV prices. - Prices for used gas-powered cars dropped during this same time period by a smaller percentage (-1.5%) than used hybrids (-2.6%) as well as secondhand electric vehicles and plug-in hybrids. - The combination of the tax credits and the lower prices contributed to a 33% increase in used EV sales in January compared to December, according to Pat Ryan, CEO of car shopping app CoPilot. ## Bottom line For much of the pandemic, [used car prices](https://money.com/used-car-prices-auto-insurance-book-value/) soared higher month after month. Buying a used Tesla is now becoming much easier and less expensive. On the other hand, if you bought a used car last year, it’s quite possible that it's already lost quite a bit of value. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/used-tesla-prices-gas-powered-cars/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Shopping", "item": "https://money.com/shopping/" }, { "@type": "ListItem", "position": 3, "name": "Electric Vehicles", "item": "https://money.com/electric-vehicles/" }, { "@type": "ListItem", "position": 4, "name": "Prices for Used Teslas and Other EVs Are Dropping More Than Gas-Powered Cars" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/used-tesla-prices-gas-powered-cars/#webpage", "url": "https://money.com/used-tesla-prices-gas-powered-cars/", "name": "Prices for Used Teslas and Other EVs Are Dropping More Than Gas-Powered Cars", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-02-06T18:23:59.000Z", "mainEntity": { "@id": "https://money.com/used-tesla-prices-gas-powered-cars/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/used-tesla-prices-gas-powered-cars/#breadcrumb" }, "dateModified": "2024-01-10T14:34:07.000Z" }, { "@type": "NewsArticle", "headline": "Prices for Used Teslas and Other EVs Are Dropping More Than Gas-Powered Cars", "articleSection": "Shopping", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/02/News-Used-EV-Car-Prices-Drop.jpg", "width": 4200, "height": 2800, "caption": "News-Used-EV-Car-Prices-Drop" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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