Used Tesla Prices Plummet, Sparking Surge in Model Y and Model 3 Deals

PAPILLION, Nebraska — A significant drop in used Tesla prices, particularly for the popular Model Y and Model 3, has reshaped the electric vehicle market as consumers increasingly gravitate towards affordable options. As of March 2025, the average price of a used Model Y has decreased by over $6,000 in just twelve months, with listings currently averaging around $30,000.

Data from CarGurus indicates that the price of the Model Y has plummeted from more than $50,000 in early 2023 to a staggering $30,000 today. This decline opens new opportunities for buyers, especially those who had previously found electric vehicles out of their budget. For instance, low-mileage used Model Ys in the Los Angeles market are now frequently priced well below $30,000.

The price reductions are not limited to the Model Y. Used Model 3s prices are also declining, with examples available for as low as $11,999, making them an attractive entry point for first-time electric vehicle buyers. As competition intensifies among electric vehicle manufacturers, prices are expected to continue adjusting.

According to Alex Knizek, associate director of auto test development at Consumer Reports, the rising prices of new vehicles have significantly influenced this trend. “With the historically high price of new autos these days, more and more people are naturally looking to the pre-owned market in search of a better bargain,” Knizek remarked in a recent publication.

Analysts point out that an increased number of viable alternatives on the market is driving down Tesla’s resale prices. Davide Greene, an industry analyst at Cars.com, highlighted a 31% increase in the number of used electric vehicle models available, with 76 different models now on the market. “This expansion gives consumers more choices beyond Tesla, including fresh designs from other brands,” Greene stated.

Kevin Roberts, Director of Economic and Market Intelligence at CarGurus, confirmed the trend: “Teslas have become somewhat of a bargain in the used market. The average list price of a used Model 3 is $23,800, and a used Model Y is down to $30,600, both well below the used EV average of $36,100 in February.”

The shift in consumer interest is evidenced by changing web search behaviors. Data reveals that searches for used Teslas decreased by 7% year-over-year in February 2025, while interest in other used electric vehicles surged by 28%. Greene explained, “The combination of more competition and shifting consumer preferences makes it clear that Tesla’s dominance is being tested.”

This landscape change is attributed to evolving consumer preferences and the growing availability of alternative electric vehicle options. As the market adjusts, it may herald a significant shift in the electric vehicle landscape, raising questions about Tesla’s continuing prominence in this ever-evolving sector.