Tesla Model Y Prices Have 'Largest Year-Over-Year Drop'

Yet it's still a strong seller and has a ton of appeal, "even as used EVs are losing value and selling slower," one expert said.

Tesla Model Y Prices

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Patrick George

By: Patrick George

Sep 13, 2024 at 1:30pm ET

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At this point, the Tesla Model Y is almost like the iPhone of electric cars. It feels like everyone you know has one, it still does a lot of things better than many of its competitors and even if it's not the newest or most interesting thing on the market, there's still a ton of things it does exceptionally well.

No wonder, then, that the Model Y is still the top-selling EV in the U.S. even as Tesla's sales slow down and more competitors start closing in. That the Model Y can hold its own quite well is even true in the used market, according to data from iSeeCars requested by InsideEVs.

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Recently, we looked at iSeeCars' data for several used EV models and focused on the Tesla Model 3. That was one of the quickest-depreciating cars over the past year or so: the average price of a Tesla Model 3 is now about $26,000, $8,500 less than it was a year before. Other EVs that have seen huge price drops on the used market include the Nissan Leaf, Hyundai Kona Electric, Kia Niro EV and Chevrolet Bolt.

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But we had to ask how the EV sales leader is doing. And it turns out the Model Y's prices have gone down just as much, even as it "shows strong demand in the used car market," as iSeeCars' Executive Analyst Karl Brauer told me. He added that the Model Y was ranked as the 16th best-selling used car in August across the whole sector, which includes EVs, gas cars and hybrids.

Tesla Model Y charging

"It’s one of only two electric cars in the top 20, confirming the Model Y’s ongoing appeal even as used EVs are losing value and selling slower," Brauer said. "By contrast, electric vehicles make up half of the 20 slowest-selling used cars, further illustrating how well the Model Y is holding up in a used-car market that’s not particularly EV-friendly right now."

And yet, the Model Y is still cheaper than it was in years past.

The folks at iSeeCars say that for one- to three-year-old cars in August 2023 and 2024, the Model Y is the one tied for the largest year-over-year price drop percentage. (Their list does exclude the Porsche Taycan because its costs are so much higher than average, so keep that in mind.)

According to their data, the average one- to three-year-old Model Y cost $44,979 in August 2023. But this past month, the average was down to $33,310—a 25.9% drop good for an $11,670 difference year-over-year.

I mentioned that the Model Y is tied, and it's with the Audi E-Tron Sportback (now renamed the Q8 Sportback E-Tron from 2024 onward.) Audi's EV averaged $51,710 on the used market a year ago, and now it's down another 25.9% to $38,298. At the same time, it's fair to say that there's quite a few more Model Ys on the used market than Audi E-Tron Sportbacks, so I think that the Tesla takes the win here.

Here's iSeeCars' full chart of used EV price drops with those models added in:

Rank Largest % Price Drop Model Avg Price 1-3yo Aug 2023 Avg Price 1-3yo Aug 2024 % Difference YoY $ Difference YoY

Tesla Model Y $44,979 $33,310 -25.9% -$11,670

Audi E-Tron Sportback $51,710 $38,298 -25.9% -$13,412

Tesla Model 3 $35,700 $26,656 -25.3% -$9,044 4 Chevrolet Bolt EV $23,487 $18,685 -20.4% -$4,802 5 Nissan LEAF $20,862 $16,852 -19.2% -$4,010 6 Kia Niro EV $27,900 $22,740 -18.5% -$5,160 7 Hyundai Kona Electric $26,500 $21,653 -18.3% -$4,847 8 Tesla Model S $70,398 $58,571 -16.8% -$11,827 9 MINI Hardtop 2 Door $26,375 $22,399 -15.1% -$3,976 10 Tesla Model X $74,057 $67,321 -9.1% -$6,737 Average $39,227 $29,582 -24.6% -$9,645

So what does all this tell us? To me, it's a few things.

First and foremost, we're seeing how 2023's rapid-fire price cuts on Tesla's EVs—particularly the Model 3 and Model Y—have pushed down the entire EV pricing market. (I can tell you I feel quite bad for anyone who purchased a Model Y in 2022 or earlier, because the depreciation hit they're dealing with is pretty brutal.)

I'd also argue that a Model Y is now a better buy than ever on the used market. While prices of the new ones have gone down lately too, anyone considering a Model Y really should check around for decent one- to three-year-old examples. They've sold so many of these EVs that surely there are plenty in very good used or even near-new condition.

And even if lots of prospective buyers and even current Tesla owners have been put off lately by CEO Elon Musk's public behavior, the Model Y is still an objectively good machine. With a good amount of crossover practicality, around 300 miles of range depending on trim level and access to the excellent Supercharger network, it's probably still just the most no-nonsense EV you can buy.

Granted, that's changing fast. The 2025 Hyundai Ioniq 5 is getting a Tesla-style NACS plug from the factory when debuts this fall, and the Ford Mustang Mach-E also offers Supercharger access with an adapter. General Motors' EVs are expected to join that party in the coming months or even weeks. The competition is getting better and better.

What do you think?

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But for now, as Brauer told us last time, "at today’s prices a used EV is starting to make sense." And I can't fault anyone for pulling the trigger on a used Model Y in the low $30,000 range right now.

Contact the author: patrick.george@insideevs.com

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