The Tesla Model 3 arrives at Kierland Commons in Phoenix on Jan. 26, 2018.
The Tesla Model 3.

Used car prices are generally on the rise due to tariffs, but one brand's used car prices have been freefalling in the past few months.

Tesla's used car price has decreased, even while the broader market is feeling the impact of tariffs. Prices have fallen for several reasons, all benefiting consumers who are looking for a used Tesla electric vehicle.

So, how much have used Tesla prices decreased by? And how do used car buyers take advantage of this price decrease while getting an affordable EV that has plenty of miles left in its future? Here's what to know.

Used Tesla prices are down, according to study

Automotive research site iSeeCars.com conducted a study to determine the state of the used car market. Overall, the study found that used car prices have risen by 3.7% over the last five months, compared to a consistent 2.5-year decline before prices broke the trend.

This is alarming because after the automotive industry has endured months of trade tariffs, price changes are finally trickling down from manufacturers and brands to the consumer. Even more concerning for customers is that the 3.7% increase could be just the beginning, as tariffs could cause used car prices to skyrocket in the long run.

Used Tesla prices are an exception, with prices falling a whopping 5.3% in July with the S,Y, and X models losing the most value respectively. A decrease in demand could be a component for why prices are falling, as Tesla's reputation has taken some hits this year. Additionally, EVs tend to depreciate much quicker than internal combustion engine vehicles.

How used car buyers can take advantage of Tesla depreciation

Getting a brand-new Tesla can be too expensive for some drivers looking for an entry-point to electric vehicle ownership. Used Teslas, on the other hand, can be found at incredibly affordable prices. Even the priciest models have become attainable for drivers thanks to significant depreciation.

Tesla has a used vehicle inventory that features vehicles like the high-performance 2018 Tesla Model S going for as low as $25,600. The 2018 Model S has an original MSRP of $74,500. So, the Model Y is up for sale at heavily discounted rates directly from Tesla.

The electric vehicle and clean energy company is selling 2018 Model X midsize electric SUVs for as low as $29,800. Tesla's 2018 Model X has an original MSRP of $84,000.

Depreciation has made most used Teslas more affordable than the average new vehicle price (over $47,000 according to Cox Automotive). One model stands out in terms of value because of its status as a best-selling SUV and EV.

Used Tesla Model Ys are excellent deals right now

The Model Y, declared as the "best-selling car in the world" at one point in 2023 by Green Cars.com, balances affordability with utility and performance, creating an experience that is practically unparalleled at its price point.

Though the small electric SUV segment has become more competitive over the years, there's a larger quantity of older Model Ys in the used car market than other nameplates. These older models have depreciated heavily compared to newer electric SUV nameplates.

Carvana, one of the most popular online used car platforms, is listing 2022 Tesla Model Ys for as low as $29,990. CarMax, another popular online used car platform lists 2020 Model Ys for as low as $24,879. To put those numbers into context, a brand-new Model Y will run you $44,990 before taxes and additional fees. You can claim a $7,500 EV tax credit for new Model Ys until Sept. 30, bringing the electric SUV's price closer to $37,490. Drivers can claim a $4,000 used EV tax credit for models two-years-old (or older) that cost $25,000 or less.

The 2020 Tesla Model Y has "swift acceleration" and "excellent driver-assist technology" according to Kelley Blue Book. Used Model Ys can provide great value for the money if drivers are looking for an affordable best-selling electric vehicle great tech and driving range.

This article originally appeared on USA TODAY: Is this the best time to buy a used Tesla? Study shows prices are down

Reporting by Charles Singh , USA TODAY / USA TODAY

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