Why used Teslas are flying off the lot
New car prices have been rising steadily for more than a year, with tariffs and inflation adding fuel to the fire. In September, the average transaction price exceeded $50,000 for the first time in history. As more buyers turn to the used car market in search of relief, prices are rising there as well.
Despite all the noise about slowing new EV sales, however, used EVs are proving surprisingly resilient.
A new report from auto industry news firm Edmunds said the average price of a three-year-old used vehicle rose 5% to about $31,000 in the third quarter of this year. At the same time, these vehicles are also sitting in dealerships longer as buyers become more selective and cautious, and it takes longer to sift through high used car prices versus new car incentives to find what works best for them.
However, electric cars are bucking this trend.
For example, the three-year-old Tesla Model S sells much faster than the Toyota Corolla Hybrid, taking an average of 21.5 days to find buyers, compared to 29 days for the Toyota. In fact, eight of the 20 fastest-selling three-year-old vehicles are now EVs. This list is no longer dominated by Teslas. Buyers are also looking for electric models from Hyundai, Kia, Ford and Audi.
“Three-year-old pre-owned EVs sold faster than gas-powered vehicles over the past year, including the last two quarters of 2024,” Ivan Drury, director of insight at Edmunds, told me in an email. “The difference now is that faster turnover is happening across a wider mix of used EV models, not just a handful of those moving in at the start of the year as we saw last year when there were fewer units and types for sale,” he added.
Drury noted that the surge in used EV purchases during the third quarter was not driven by the same frenzy that drove new EV buyers to claim the now-dead $7,500 federal tax credit. While some used models also qualify for a smaller $4,000 used EV tax credit, used vehicles rarely benefit from the aggressive incentives automakers offer for new ones. What accelerated the sale of used EVs was mainly the cost.
See the table below for the average prices of three-year-old used EVs. Aside from the Model S, which averages $44,621, all of the other seven EVs are priced in the mid-$20,000s, a symbol of how affordability is driving adoption. In most cases, buyers are getting a much more advanced vehicle compared to gas cars at the same price and with much lower running costs.
| vehicle | Days on the lot
(Edmunds data Q3 2025) |
3 year award | Original MSRP |
| Tesla Model S | 21.5 | $44,621 | $115,356 |
| Tesla Model 3 | 24 | $24,447 | $57,009 |
| Cadillac CT5 | 25.8 | $31,549 | $52,179 |
| Tesla Model Y | 26.3 | $27,624 | $69,017 |
| Lexus NX 350h | 26.9 | $40,575 | $49,520 |
| Lexus NX250 | 27.5 | $32,161 | $42,308 |
| Lexus RX 350L | 28.7 | $39,773 | $59,049 |
| Toyota Corolla Hybrid | 28.9 | $20,238 | $26,823 |
| Kia Rio | 29.5 | 14,203 dollars | $18,912 |
| Lexus NX 350 | 29.6 | $36,573 | $49,895 |
| Hyundai Ioniq 5 | 29.7 | $23,964 | $50,660 |
| Volkswagen ID.4 | 30.9 | $23,145 | $49,071 |
| Toyota GR Supra | 31 | $50,322 | $57,796 |
| Honda Accord | 31.3 | $24,895 | $32,096 |
| Audi Q8 e-tron | 31.7 | $28,322 | 77,342 dollars |
| Honda passport | 31.9 | $31,446 | $43,855 |
| Kia EV6 | 32 | $24,447 | $54,167 |
| Ford Mustang Mach-E | 32.4 | $26,920 | $57,018 |
| Toyota Corolla | 32.7 | $23,902 | $28,245 |
However, three-year-old used EVs are hard to find and only make up 1.6% of the total three-year-old car market. EV sales have grown rapidly over the past few years, so there are far fewer three-year-old EVs available than new EVs. This is one of the reasons why buyers act quickly. They want to make a deal before he’s gone.
However, in the mid-$20,000 price range, the EV pricing proposition is strong. Buyers get pre-owned models that are quieter than gas-powered cars, benefit from America’s growing fast-charging network, and offer performance and acceleration that are orders of magnitude better than gas-powered used cars at the same price.
Buying used electric cars is also more predictable than choosing new ones. “Consumers looking at new products could be trapped each month waiting for the best deal as automakers wrestle with prices, but in the used market you already know what’s going on,” Drury said. So he expects this trend of used EVs selling faster than used gas cars to continue in the coming months.
In addition, the new EV market is significantly different from what it was three years ago. Buyers have more options with better range, faster charging and overall improved technology. Buyers taking out three-year leases tend to opt for these new vehicles, meaning the supply of used electric vehicles is likely to be strong in the coming months, Drury said.
And while an influx of new affordable EVs is on the way, driving one home may not be as easy as it seems. The new Nissan Leaf is fantastic, agreed the InsideEVs team after taking it for a long drive recently. But Nissan cut production of the Leaf by more than half this year because of the battery problem. And General Motors said the upcoming Chevy Bolt will be a “limited run” only.
So in case you can’t get your hands on one of these new, exciting and affordable models, rest assured that if you look hard enough, you should be able to find something in the used electric car market that will meet your needs and not be overpriced.
Do you have a tip? Contact the author: suvrat.kothari@insideevs.com