Snagging a Pre-Owned Luxury Car or EV: Could This Be the Perfect Moment?

Although the tumultuous fluctuations in the post-pandemic used car market have settled down slightly, a fresh study uncovers an emerging pattern: certain sought-after models are experiencing unexpectedly swift devaluation. A review conducted by iSeeCars spotlighted particular automobiles with depreciation rates significantly exceeding the industry norm over the last twelve months. This acts as a significant red flag for prospective buyers. the used car market .

The research analyzed the costs of 1.4 million pre-owned vehicles aged from one to five years old during the period spanning March 2024 through March 2025. Surprisingly, the general mean cost for these used cars experienced only a minor decline. increase Of 1.0 percent ($317) compared to the previous year during this timeframe. This marks the first increase of this kind since October 2022. Nonetheless, some specific models experienced significant declines. At the forefront is the Tesla Model S .

The leading electric saloon experienced a substantial drop in its average resale price by 17.2 percent. This equates to an average decrease of $9,944 within the past year. By March 2025, the typical Model S was priced at $47,931. Such notable devaluation could be indicative of various market factors. long-in-the-tooth design and souring public opinion regarding CEO Elon Musk , yet it's simply an electric vehicle (EV), and these tend to retain their value quite well.

An Examination of the Biggest losers

The Model S is not unique when it comes to facing quick devaluation. Porsche Taycan Another prominent electric vehicle experienced the biggest decrease in MSRP, dropping by $13,422 (15.1 percent) within the year. Electric SUVs also feature on this list, including the Ford Explorer Hybrid decreased by 14.1 percent ($5,136) and the BMW 5 Series Hybrid falling 13.9 percent ($5,557).

Grasping the Drop and Leveraging It

When examining brand performance, Tesla experienced the most significant decrease in average values among all their models. Used Tesla vehicles lost approximately 10.1%, equating to around $3,541, in comparison to the preceding year. This shift can be attributed to Tesla’s strategic decisions made during the prior couple of years. As stated by iSeeCars' executive analyst Karl Brauer, “Tesla implemented lower pricing for new cars to sustain sales expansion; however, this approach ceased being effective as they recorded their initial drop in yearly sales.” Additionally, he suggests that these reduced prices directly impacted the resale market, causing used Tesla vehicle valuations to plummet swiftly.

Other brands seeing considerable average depreciation in their used vehicle lineup consist of Chrysler with an 8.9 percent drop, followed by Maserati at -8.6 percent, Genesis at -6.5 percent, and Dodge at -4.7 percent.

The notable decline in value for these particular models, particularly as the overall used car prices show a minor increase, indicates various elements may be influencing them apart from typical market changes. Factors such as reduced pricing, heightened competitive pressure, and possibly changing customer tastes within electric vehicle (EV) and hybrid markets could be affecting vehicles like the Taycan, Explorer Hybrid, Niro EV, and 5 Series Hybrid. Brands including Maserati and Genesis face this situation comparatively. lower brand recognition Or variations in volume compared to their German luxury counterparts could affect resale values. According to Brauer, even as used car prices increase due to tariff threats, buyers can still come across good deals if they put in the effort to do thorough research.