Researchers have discovered that the average price of used cars has increased for the first time in years.
However, some of the most popular used electric vehicles have actually seen their values decrease in that same time span.
What's happening?
A study from online automotive search engine iSeeCars found the average listing price for a recent used car was $31,624 in March 2025, up 1% from the year before. According to the researchers, they analyzed over 1.4 million used cars sold in March 2024 and 2025. These vehicles were between one and five years old.
iSeeCars executive analyst Karl Brauer noted that the recent increase in used car prices is a sharp turnaround from the previous year.
"Used car prices had been falling by as much as 7.3% in June 2024, but over the past six months, used car prices stabilized," Brauer said.
However, recent world events have caused the used car market to adjust itself.
"Now used car prices are going up, and this is before tariffs have impacted new car pricing, which will add further upward pressure to both new and used car prices," Brauer added.
Despite the overall trend in the used car marketplace, companies such as Tesla, Porsche, and Ford have seen some of their used cars decrease in value. iSeeCars noted the 20 vehicles that saw the biggest drop-off in value over the past 12 months.
At the top of the list, the Tesla Model S saw a 17.2% drop in sales price since March 2024. That was followed up by the Porsche Taycan with a 15.1% decrease in value. The Ford Explorer Hybrid rounded out the top three, experiencing a 14.1% decline.
Why is the value of used cars important?
In addition to the Tesla Model S being the used vehicle seeing the largest price drop, Tesla also landed at the top of the list of car companies experiencing the biggest decline in overall used car value. The list also includes companies such as Chrysler, Maserati, and Volvo.
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Cost concerns 💸 "While overall used car prices are relatively stable, these 10 brands are dropping," noted Brauer. "This suggests consumers looking to save money on their next used car purchase can still find deals, if they do their research."
According to iSeeCars, all used Tesla cars have dropped over 10% in their value since 2024. The drop in used car value comes at the same time that Tesla has seen a dramatic decrease in new car sales. Through the first quarter of 2025, the company has reported around $2 billion less in revenue compared to 2024.
"Tesla has been one of the most profitable automakers in the world in recent years, but the ongoing drop in its new and used vehicle values, along with sagging sales, will be a drag on revenue and profit," said Brauer.
Although the company may be suffering a setback, consumers can benefit from lower prices while purchasing vehicles with zero tailpipe emissions and a lower impact on the environment.
What's being done about Tesla's drop in revenue?
In an effort to right the ship, Tesla CEO Elon Musk has decided to reduce his hands-on role with the Department of Government Efficiency and refocus his time on the company.
As CNN reported, Musk announced his decision during a call with investors. "Starting next month, May, my time allocation to DOGE will drop significantly," Musk said.
Tesla has seen an increase in heated protests at its dealerships around the globe. Much of the pushback has stemmed from Musk's involvement in politics and DOGE.
Both Republican and Democratic administrations have introduced efforts to tackle fraud over the years, but critics of DOGE are skeptical about the agency's processes. For instance, in February, ABC News reported that Musk's misreading of record-keeping systems led him to falsely conclude that millions of dead people were incorrectly receiving Social Security checks, and no specific people have yet faced any allegations by DOGE of this type of fraud.
Ultimately, Musk remains confident in his involvement in the Trump administration.
"I think the right thing to do is fight the waste and fraud and try to get the country back on the right track," Musk said. "If the ship of America goes down, Tesla will go with it."
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