Used Tesla price drops dominate February figures

Used Tesla prices suffered some of the biggest price drops last, accounting for three of the five biggest losers in February.

The latest Market View analysis from used car search service Motors showed that second-hand EV values continued to fall more sharply than ICE in most cases, with the Tesla Model 3 and Y among those that suffered the biggest drops.

The figures show that the previous-generation Mini Electric suffered the heaviest monthly drop. Models in the three-to-four-year-old bracket lost an average of 5.6% value, dropping to £14,429. However, the Tesla Model 3 of the same age was close behind, with a 5.4% drop. That took the average price of a used Model 3 to £20,859. The Model Y suffered a smaller decline, with two-to-three-year-old cars dropping 4.9% to £29,639.

Older Tesla Model 3s (4-5 years) were in fifth position, with a 4.2% decline to an average of £19,009. Overall, used Tesla values have dropped 22% on Motors since February 2024.

Motors’ marketing director Lucy Tugby said that the dropping values were making used Teslas a more attractive prospect for dealers, with a 77% jump in stock levels over the last year.

She commented: “Our Market View data shows that ongoing price reductions have encouraged more dealers to add Teslas to their stock mix. With Tesla Model 3 prices averaging £20,300, these vehicles are becoming more affordable for consumers.

“We will closely watch demand metrics as Tesla faces off against an increasing number of EV options from both emergent and legacy brands.”

While used EV prices have settled down in recent years, Motors’ figures suggest they are still declining faster than those of ICE vehicles. Month-on-month, they were down 4% compared with around 1% for petrol, diesel and hybrids. And its year-on-year data shows that the average price of used EVs has dropped to £25,177 – a 13% decline.

Declining values may be bad news for sellers, but they mean that an ever-growing pool of good quality electric cars with low running costs is opening up EVs to a wider audience. Recent research by EVUK found that the average used EV was £2,000 cheaper than an ICE equivalent and saved owners around £5,300 in running costs over five years.