The landscape for Tesla drivers has shifted significantly this year. Many feel disconnected from the views of Elon Musk, whether it’s about politics, cryptocurrencies like DOGE, or recent changes in executive compensation. Nonetheless, a wave of used Teslas has appeared on dealer lots across the country, and they’re not lingering for long. These vehicles are being sold faster than most other used options, both electric and gas-powered.
According to a report released by Edmunds on the top-selling three-year-old vehicles in the third quarter of 2025, the Tesla Model S is leading in sales speed. It sold in an average of just 21.5 days, well below the average of 41 days for used cars. The Model 3 followed closely at 22 days, while the Model Y came in at fourth place, averaging 26.3 days to sell.
Scrutinizing three-year-old models offers valuable insights into the car market, as buyers generally upgrade within this timeframe. Even though Tesla sales have faced some challenges this year, the Model Y and Model 3 remain among the most popular EVs in the U.S. As more vehicles from 2024 and 2025 leases become available, we expect a steady supply to meet demand. However, the decline of the used EV federal tax credit, worth up to $4,000, had initially contributed to this momentum.
The final quarter of the year serves as a crucial indicator of whether demand for used EVs will continue to rise. In October, electric vehicle sales witnessed a dramatic 81% drop year-on-year for the Honda Prologue EV, as reported by Car and Driver.
Edmunds highlighted that the removal of the federal credit could guide more buyers toward the used car market for affordability. It’s important to note that Tesla isn’t the only brand seeing strong demand in the used EV segment. The Hyundai Ioniq 5, Volkswagen ID. 4, Audi e-tron, Kia EV6, and Ford Mustang Mach-E also ranked among the top 20 fastest-selling used EVs, each taking less than 32.4 days to sell.
One driving factor for the quick sales of used EVs is their limited availability. In the third quarter, only 1.6% of used car inventory comprised EVs. This scarcity mirrors the market conditions three years ago and suggests that more models will hit the market next year.
A substantial inventory of 2022 Model 3 and Model Y vehicles has bolstered Tesla’s performance in recent reports. However, affordability remains a concern. The average sale price for a three-year-old Model 3 was $24,447 (approximately €22,500), a significant drop from its original price of over $32,000. Similarly, a 2022 Model Y sold for around $28,000 (approximately €25,800), compared to its initial sticker price of nearly $69,000. All EVs tend to depreciate more steeply than their gas counterparts, although the Hyundai Ioniq 5 and VW ID. 4 managed to retain about 47% of their value after three years—better than the Model Y’s approximately 40% retention.
While Tesla has experienced a growth in deliveries in 2023, there are clear signs of slowing down in 2024. The company previously adjusted to a slump in international demand by rolling out cheaper, less-featured versions of the Model 3 and Model Y. These adjustments, however, haven’t sat well with enthusiasts or experts alike.
As we look ahead, the performance of used Teslas in comparison with rival models will be telling for the health of the brand in the eyes of average consumers.
Why are used Teslas more popular than other used cars? The high demand for used Teslas stems from their rapid resale value retention and desirability, making them an attractive option for buyers seeking quality used electric vehicles.
What factors affect the resale value of used Teslas? Factors such as initial purchase price, market demand, the condition of the vehicle, and the availability of similar models heavily influence resale values.
How much can you expect to pay for a used Tesla? Generally, a three-year-old Tesla Model 3 sells for about $24,447 (approximately €22,500), while a Model Y averages around $28,000 (approximately €25,800).
Are other used EVs selling quickly as well? Yes, besides Teslas, models like the Hyundai Ioniq 5 and Volkswagen ID. 4 are selling fast, often in under 32.4 days, indicating solid interest in the used EV market overall.
Finally, what does the future hold for used EV demand? It hinges on external factors, including government incentives and overall economic conditions, but the last quarter of the year will reveal crucial trends in the market.
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