AGGRESSIVE discounting by Tesla has cut a swathe through retained values across the total American electric vehicle fleet with the latest numbers showing used car prices for EVs dropping by an average of 31.8 per cent in the past year.

And according to market analyst ISeeCars, the year-on-year drop in resale values for used EVs in September 2023 was a massive 39 per cent. 

This compares with the average used car prices in the US of $US31,153; a drop of just 3.6 per cent.

The ISeeCars survey coincides with reports from Britain saying the UK dealers are turning away customers who have trade-ins of battery electric vehicles citing “shocking“ levels of depreciation for BEVs and their intention to avoid exposure to the risk inherent in that market.

iSeeCars analyzed over 1.8 million 1- to 5-year-old used cars sold in the US in February 2023 and 2024. By comparing the average prices of cars by segment, brand and model, the analysis shows a general softening of used car prices overall, but a dramatic drop in used electric vehicle prices.

iSeeCars commented: “The weakness in the EV market is obvious when looking at the models that have lost the most value. Three Tesla models are ranked in the top 10 cars for biggest price drops, including the Model X with a 24.6 per cent decrease, the Model 3 with a 24.1 per cent decrease and the Model S with a 20.5 per cent drop.

“EVs make up seven of the top 10 models that lost the most value this year,” the company said. 

“Older EVs like the Chevrolet Bolt and Nissan LEAF lost the most value, but three of Tesla’s four models are also among the top 10 cars that lost value.”

The seven electric models that led the used car market in price drops are: Chevrolet Bolt, Nissan Leaf, Kia Niro, Hyundai Kona, Tesla Model X, Tesla Model 3 and the, Tesla Model S

iISeeCars said that hybrid cars lost value of 6.5 per cent over the previous12 months.

“In addition to EVs, there were three luxury models among the top 10 used cars that dropped in price. But even these models only lost about half as much value as the Chevrolet Bolt EV.

“Used Teslas lost more value than any other brand, and with a 28.9 percent decline they lost more than twice as much value as second-place Alfa Romeo,” ISeeCars said. “Elon’s desire to maintain new Tesla sales through price cuts had a very destructive impact on the brand’s residual values.”