According to a new report from iSeeCars.com, used car prices have fallen steadily over the last year, with electric vehicles being the most affected.
According to the report, used car prices have declined 8.7% from February of 2022, while EVs have dropped 13.9%. This translates to an average loss of $3,024 in preowned values. While prices fluctuated throughout last year, the current downward trend has lasted since November.
The iSeeCars.com study analyzed half-year and full-year trends for used car prices. Out of all vehicles counted in the last six months, the $41,337 Tesla Model 3 electric sedan has dropped the most since September, costing 21.5% or $11,302 less than its price in 2022. This change is also reflected in the EV brand’s new cars, most of which were heavily discounted in January. For all cars sold over the last 12 months, the price of the $41,094 Infiniti QX80 luxury SUV fell more than any other vehicle researched, retailing at 22.3% or $11,780 less than it did last February.
While average used car prices have declined steadily year-over-year, some vehicles still saw gains. The $87,981 Mercedes-Benz S-class luxury sedan is now selling for 11.8% or $9,314 more than it was six months ago, the greatest increase since November. For the last 12 months, the $190,770 Porsche 911 sports car received the largest hike, retailing for 13% or $21,913 more than it did last February.
Even in early 2023, used car prices have continued to fluctuate, creating headaches for dealers who hoped for a smooth start to the year. The downward trends noted in iSeeCars.com’s report is also likely to stoke fears that the days of record-breaking profit margins in the aftermath of the COVID pandemic are at an end. However, with a variety of challenges expected to impact the new car market later in the year, it remains to be seen how the preowned sector reacts.
