Used car prices rose 2% to $32,317, driven by limited supply.
Tesla’s average used price dropped 8.4%, with four models among top 10 biggest decliners.
SUVs and hybrids posted the strongest year-over-year price increases among all segments.
Used car prices have risen in the U.S. for the third consecutive month, reversing a two-year downward trend. According to a new study, the average price of a 1- to 5-year-old used vehicle in May 2025 reached $32,317, an increase of 2% or $630 compared to the same month last year.
In contrast, the average price of a 1- to 5-year-old used electric vehicle dropped 8.8%, or $2,993, to $31,110. Tesla recorded the largest year-over-year decline among brands, with its average used vehicle price falling 8.4% to $30,708.
2021 BMW 4 Series Coupe | Photo: BMWThe increase in used car prices is primarily attributed to limited vehicle supply, which comes from reduced new vehicle production during the pandemic and a higher rate of lease buyouts. The used vehicle market saw price increases of $317 in March, $599 in April, and $630 in May. This pattern has continued nearly uninterrupted since June 2024.
Electric vehicle prices, which experienced steep losses of more than 30% in 2023 and early 2024, appear to be stabilizing. The recent 8.8% drop in EV value marks a slowing pace of depreciation. Despite the decline, EV prices have remained relatively flat over the last 12 months.
Among vehicle segments, SUVs recorded the highest year-over-year price increase at 4.3%, followed by hybrids at 1.8% and trucks at 1.7%. Passenger cars and minivans declined by 2.0%, while electric vehicles posted the sharpest decline.
Tanking Tesla
Top 10 Cars With the Biggest Year-over-Year Price Drops: | ||||
Rank | Model | Average Used Price | $ Price Difference (YoY) | % Price Difference (YoY) |
1 | Tesla Model S | $46,503 | -$8,837 | -16.0% |
2 | Tesla Model Y | $29,789 | -$4,945 | -14.2% |
3 | Porsche Taycan | $75,644 | -$10,998 | -12.7% |
4 | Ford Explorer Hybrid | $31,811 | -$4,044 | -11.3% |
5 | Tesla Model 3 | $25,361 | -$3,078 | -10.8% |
6 | Jeep Gladiator | $34,253 | -$4,112 | -10.7% |
7 | Ford Escape Plug-In Hybrid | $26,201 | -$3,139 | -10.7% |
8 | Mercedes-Benz GLB | $32,403 | -$3,566 | -9.9% |
9 | Maserati Levante | $44,433 | -$4,663 | -9.5% |
10 | Tesla Model X | $54,004 | -$5,292 | -8.9% |
Overall Average | $32,317 | $630 | 2.0% | |
Four Tesla models ranked among the top 10 used vehicles with the largest price drops. The Model S fell 16.0%, or $8,837, to $46,503. The Model Y declined 14.2%, or $4,945, to $29,789. The Model 3 and Model X also made the top 10, with respective declines of 10.8% and 8.9%.
Other vehicles that saw large declines include the Porsche Taycan (–12.7%), Ford Explorer Hybrid (–11.3%), and Jeep Gladiator (–10.7%).
On the other end of the spectrum, the BMW 4 Series led all models in price appreciation, gaining 19.5%, or $6,648, to $40,751. It was followed by the INFINITI QX60 (+16.5%), Porsche 718 Boxster (+15.7%), and Chevrolet Trax (+15.5%).
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At the brand level, Tesla experienced the sharpest decline, followed by Chrysler (–6.5%), Dodge (–5.9%), and Genesis (–5.3%). Brands that posted price gains included INFINITI (+9.5%), Acura (+8.9%), and Lexus (+7.8%). These brands generally feature strong SUV lineups, which helps explain their positions.
The iSeeCars analysis covered over 2.4 million 1- to 5-year-old used cars sold in May 2024 and May 2025. Results excluded heavy-duty vehicles and discontinued models.
