Now Might Be The Best Time To Buy A Used Luxury Car Or EV

While the chaotic surges of the post-pandemic used car market have calmed somewhat, a new report reveals a recent trend: some popular models are losing value at a surprisingly rapid pace. An analysis by iSeeCars highlighted specific vehicles whose depreciation over the past year far outstrips the market average. This serves as a crucial “buyer beware” signal for those shopping the used car market.

The study examined the prices of 1.4 million one-to-five-year-old used vehicles between March 2024 and March 2025. The overall average used car price actually saw a slight increase of 1.0 percent ($317) year-over-year during this period. This is the first such rise since October 2022. However, there were steep drop-offs for particular models. Leading the pack is the Tesla Model S.

Base Trim Engine

Electric

Base Trim Transmission

Single Speed Automatic

Base Trim Drivetrain

All-Wheel Drive

The pioneering electric sedan saw its average used price plummet by 17.2 percent. That is an average loss of $9,944 over the last 12 months. As of March 2025, the average Model S is listed at $47,931. The significant depreciation may reflect its long-in-the-tooth design and souring public sentiment on CEO Elon Musk, but it’s also just an EV, and those rare hold value well.

A Look at the Biggest Losers

The Model S is far from alone in experiencing rapid depreciation. The Porsche Taycan, another high-profile electric vehicle, saw the largest drop in terms of sticker price, losing $13,422 (15.1 percent) over the year. Electrified SUVs also appear on the list, with the Ford Explorer Hybrid dropping 14.1 percent ($5,136) and the BMW 5 Series Hybrid falling 13.9 percent ($5,557).

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Understanding the Plunge And Taking Advantage

Looking at brands overall, Tesla saw the steepest average decline across its lineup, with used models losing an average of 10.1 percent, or $3,541, in value compared to the previous year. This trend is likely linked to the company’s strategy over the past two years. “The new car price cuts were driven by Tesla’s desire to maintain sales growth, but that strategy stopped working last year when the automaker saw its first decline in annual sales,” said iSeeCars executive analyst Karl Brauer. He also believes the company’s price cuts immediately hurt the prices of used Teslas, driving those “down at a rapid rate.”

Other brands experiencing significant average depreciation across their used models include Chrysler (-8.9 percent), Maserati (-8.6 percent), Genesis (-6.5 percent), and Dodge (-4.7 percent).

The significant depreciation of these specific models, especially when the average used car price shows a slight gain, suggests several factors might be at play beyond general market fluctuations. Price cuts, increased competition, and potentially shifting consumer preferences in the EV and hybrid segments could be impacting models like the Taycan, Explorer Hybrid, Niro EV, and 5 Series Hybrid. For brands like Maserati and Genesis, relatively lower brand recognition or volume differences compared to German luxury rivals might influence resale values. For buyers, while used car prices are rising amid the threat of tariffs, Brauer says buyers can still find deals if they do their research.

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Source: iSeeCars