ÙSED pure electric vehicles in the United States are continuing to shed value at an astonishing rate according to analysis of more than 1.9 million used car sales while internal combustion engine vehicles and hybrid vehicles are holding their values, according to research by iSeeCars.

The research company said that some used electric vehicle prices have fallen between 15 per cent and 20 per cent each month over the past six months. 

“This puts the average 1- to 5-year-old used EV price at $32,198, or just $917 above the price of the average gasoline (petrol) vehicle at $31,281,” according to the latest iSeeCars study that analyzed over 1.9 million used cars sold in February 2024 and February 2025 to identify used car pricing trends.But used gasoline and hybrid models are holding their own with each category down by just 0.5 per cent, or less than $160 in the same period.

Electric vehicle prices continued their sharp decline, dropping 15.1 per cent ($5,709) from a year ago, the research showed.

When ranked by brand, Tesla’s used models lost 13.6 per cent in value on average over the past year, more than any other nameplate. 

The Tesla Model S, Model Y and Model 3 all ranked in the top six used cars with the biggest price drops in the past year, with the Porsche Taycan at the top of the list.

Tesla’s new vehicle discounting, an aging product line-up and stalling demand in new and used EVs are likely contributors, the company said. It did not mention public reaction to Elon Musk’s role in realigning government efficiency as a factor.

Maserati was the second most affected brand at 10.6 per cent loss of value, followed by Chrysler at 7.6 per cent, Chevrolet at 6.5 per cent and Genesis at 4.8 per cent.“Several mainstream and premium brands had big used car price drops over the past year, in terms of percentage,” iSeeCars executive analyst Karl Brauer said. “But only Tesla and Maserati lost more than $5,000 in dollar value.”

The report said that electric vehicle pricing was, however, slowly stabilizing.“Used electric vehicle pricing was dropping around 30 per cent every month in the first half of 2024, but over the past six months it’s been down between 15 per cent and 20 per cent. But those are still much bigger drops than gasoline and hybrid models’ pricing are experiencing.

A possible upside was that the sharp drops in value “made EVs a potential bargain for used car shoppers who can satisfy their mobility needs with an electric vehicle”. 

“Unfortunately for any used ICE car shoppers waiting for prices to drop, there’s little reason to believe they will. Used car prices overall have largely stabilized, dropping less than 6 per cent most months over the past year, and less than 1.5 per cent over the past five months. 

“The average price of 1-to 5-year-old used cars has shifted less than $1,000 over the past year. There’s no indication prices will drop from their current levels throughout 2025 and, with tariffs looming, the price of both new and used cars could potentially rise.

“The average price of 1-to 5-year-old used cars dropped as low as $29,651 in December 2024, then bumped back up above $31,000 this January and February. Market data from Lease End shows an increasing number of people buying out their leased vehicles at the end of the lease term, limiting the supply of used vehicles.

“Without a major shift in either supply or demand, pricing for used cars will remain around $30,000 for the foreseeable future,” Mr Brauer said. “A drop in interest rates might increase demand for used vehicles, but a downward shift in consumer confidence will reduce it, and both elements could play a part in used car pricing this year.

“It’s not easy to find a great deal in today’s used car market,” Mr Brauer said, “but if an electric vehicle can serve your personal transportation needs, most used models have dropped substantially in cost over the past year, especially compared to gas and hybrid models.”

“Focusing on electric vehicles, while all EVs show substantial year-over-year losses in value, three of Tesla’s models rank in the top 4, along with the Porsche Taycan, for experiencing the biggest drops. 

“A used Porsche Taycan has lost 26.5 per cent of its value over the past year, followed by the BMW 5 Series hybrid and Tesla Models S and Y that have lost more than 15 per cent of their used values. This translates to thousands of dollars of lost value for owners but an undeniable purchase opportunity for buyers.

“It’s hard to ignore the prominence of EVs when it comes to lost used car value, with six of the top 10 models being electric vehicles,” Mr Brauer said.

Used hybrid vehicle value holding up much better

Like petrol cars, overall hybrid vehicle prices are holding steady at nearly $30,000, but in contrast to EVs, hybrid vehicles’ prices span a range of a 16 per cent drop to a 7 per cent price increase, with multiple models actually gaining value over the last year.

All prices in US dollars