With new car prices reaching record highs, many buyers are turning to the used car market for more affordable options. Consumer Reports has taken note of this shift, releasing its first-ever ranking of used car brands to help shoppers make informed choices.
Alex Knizek, associate director of auto test development at Consumer Reports, explains the growing trend. “With the historically high price of new autos these days, more and more people are naturally looking to the pre-owned market in search of a better bargain,” he said.
One area seeing the most movement is the electric vehicle (EV) sector, with Tesla models leading the pack in price reductions.
Tesla Model Y and Model 3 See Big Discounts
Tesla’s Model Y, the best-selling EV in the U.S., has seen its used prices plummet. Over the last year, the average price of a used Model Y has dropped by more than $6,000, settling around $30,000, according to CarGurus. Compared to March 2023, the price drop is even more dramatic—over $20,000 lower.
In cities like Los Angeles, low-mileage Model Ys with fewer than 20,000 miles can be found for well under $30,000, making them a tempting deal for buyers looking for an advanced EV at a fraction of its original cost.
The Model 3, Tesla’s compact sedan, has also seen steep price reductions, particularly on high-mileage vehicles. Some used Model 3s are now available for under $15,000, a price point that could attract first-time EV buyers. A 2020 Model 3 with over 170,000 miles, for example, is currently listed at $11,999 on CarGurus, while a lower-mileage 2020 Model 3 Standard Range Plus with 58,000 miles is priced at $19,999.
New Model Y Release and Changing Market Trends
Tesla’s upcoming Model Y refresh, known as “Juniper,” is set to hit the market, which could further impact used car prices. As buyers trade in older versions for the latest model, used Model Y inventory is expected to grow, leading to even lower prices.
At the same time, consumer sentiment toward Tesla appears to be shifting. While the extent of this change is hard to quantify, it’s clear that the company faces increasing competition in the EV space.
More Options in the Used EV Market
Tesla has long been dominant in the EV market, but the landscape is evolving. Other automakers are gaining traction, giving used car buyers more variety.
“The number of used EV models on the market has spiked, growing 31% year over year,” said Davide Greene, an industry analyst at Cars.com. “As of February 2025, there are now 76 different used EV models available, compared to just 58 a year prior. This expansion gives consumers more choices beyond Tesla, including fresh designs from other brands.”
Shifting Consumer Interest
Recent web search trends suggest that fewer people are looking for used Teslas than before. In February 2025, searches for used Tesla models fell by 7% year over year, while searches for other used EVs surged by 28%, according to Greene.
Additionally, used Teslas are staying on dealer lots longer than they did a year ago. Previously, Tesla models would sell faster than competing EVs, but now they are lingering for similar durations, indicating a more competitive market.
“The combination of more competition and shifting consumer preferences makes it clear that Tesla’s dominance is being tested,” Greene added.
