The price of used Teslas dropped faster than any other auto brand in the past year, a new report says.
ISeeCars.com – trackers of used-car sales — says the average price paid for a used Tesla was down 8% to $30,708. The next most significant price drops were Chrysler, off 7% to $25,632, Dodge, off 6% to $33,763, Genesis, off 5% to $33,769, and Maserati, off 5% to $43,821.
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Tesla faces numerous problems, most notably the controversial political roles of its high-profile chief executive, Elon Musk. His budget-cutting work for the Trump administration enraged many former Musk/Tesla fans, slashing the appeal of a once high-flying brand. Musk’s recent fallout with President Trump – not a factor in these sales stats – won’t help Tesla’s value.
Note that in May, Tesla had four of its models among the 10 biggest price declines industrywide: Model S, off 16% to $46,503 – the biggest dip, No. 2 was Model Y, off 14% to $29,789, No. 5 was Model 3, off 11% to $25,361, and No. 10 was Model X, off 9% to $54,004.
Elon Musk and Donald Trump talk during a campaign event in Butler, Pa., on Oct. 5. (AP)
It’s not just used Teslas that are out of favor. Sales of its new cars have slumped, too – as has the company’s stock, slashed in value by one-third since a peak in mid-December.
“Multiple factors contribute to a used car’s value, but being an electric vehicle and wearing the ‘Tesla’ brand appears to be a double negative,” said Karl Brauer, iSeeCars’ executive analyst. iSeeCars used-car study focuses on cars between 1 and 5 years old.
Electric vehicles have lost their shine in the used-car market, as drivers fret about their hefty price tags and some operational challenges, notably how to keep the cars charged. Used EV sales prices were off 9% in the year ending in May to $31,110. Used passenger cars and minivans also saw declines, down 2% to $27,292.
Conversely, Americans’ love for larger vehicles drove used SUV prices up 4% to $32,770 as trucks became 2% more expensive to $39,880.
Curiously, prices of hybrids were up 2% to $30,702. Consumers paying up for these combinations of old and new engine technologies suggest some drivers want cutting-edge and efficient vehicles, not just the cost and challenges tied to EVs.
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Overall, the report has some bad news for used-car shoppers: prices have risen on a yearly basis for three consecutive months. For May, prices rose 2% in a year to $32,317. By brand, the biggest gains had a luxury feel: Infiniti, up 10% to $35,915, Acura, up 9% to $37,099, and Lexus, up 8% to $41,712.
According to Brauer, it’s all about not having enough cars on the sales lots thanks to the “COVID hangover” – limited new-car production in 2020-22 – and more drivers keeping leased vehicles.
More concerning, he notes, “This supply issue won’t resolve itself in the near term, suggesting we could continue to see used-car prices grow over the next six months.”
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]