Used Tesla's Surge in Popularity as Prices Dip & Demand Rises
Published On: May 26th, 2025
Used electric vehicles, especially Teslas, are seeing a sharp rise in demand across the U.S. this spring. According to recent market data, used Tesla sales jumped 27% in April alone, making up nearly half of all used EV sales. This uptick comes at an interesting time: the brand’s average resale price actually dropped by 1.8%, signaling that more buyers are now seeing Teslas as financially within reach.
Price has always been a major hurdle when it comes to EV adoption. Even secondhand models have often been out of budget for the average used car buyer. But that’s changing, at least with certain trims. As more off-lease Teslas hit the market and new car incentives shift demand, used inventory is growing, and with it, pricing is starting to soften.
It’s not just Teslas either. Interest in used EVs across all brands is rising. But Tesla remains the dominant player, accounting for around 47% of all used electric vehicle sales. That’s despite a bumpy year for the company: Q1 deliveries dropped by 13%, and its CEO, Elon Musk, has remained a polarizing figure in the public eye. Yet none of that seems to be discouraging buyers from scooping up their vehicles on the secondhand market.
One reason for the rise in used EV interest is simple, high gas prices. While fuel costs aren’t skyrocketing like they did in past years, they remain high enough to make EVs appealing, especially to commuters. And while new EVs still come with a steep price tag, used ones are now becoming a more realistic option, especially for buyers who’ve been priced out of the new car market altogether.
Inventory is also playing a role. Many buyers who started out looking for a fuel-efficient gas car ended up landing on a used EV simply because it was available. Shortages of traditional vehicles, especially compact sedans under $20,000, have steered shoppers into broader categories. And in some markets, a used EV might actually be easier to find than a similarly priced gas-powered car in good condition.
There’s also a shift in how people think about EV ownership. Just a couple of years ago, buying a used electric car came with a lot of concerns, battery life, range anxiety, lack of charging infrastructure. But that’s changed. Buyers are becoming more comfortable with the idea, especially in urban and suburban areas where charging stations are more common. Many buyers are also more informed about battery degradation and warranty coverage than they used to be, which helps reduce hesitation.
For sellers, this moment presents an opportunity. If you’re holding on to a Tesla Model 3 or Model Y that’s in good shape and has low mileage, you’re likely to get a strong offer from dealers or individual buyers. The market is hungry for inventory, and EVs with verified service history and intact battery health reports are moving quickly.
That said, the growth in used EV demand doesn’t mean buyers should rush in without doing homework. Some EVs, especially older models with shorter range or outdated tech, aren’t holding value as well. And even Teslas can vary widely in price depending on battery condition, mileage, and autopilot features. Shoppers should check for battery warranty status, consider potential charging needs, and weigh the total cost of ownership, including insurance and maintenance.
Overall, the used EV market is in a sweet spot right now. Prices have softened just enough to attract new interest, but demand is high enough to keep values from collapsing. Tesla may be leading the charge, but other brands are catching up, and buyers are becoming more open to the idea of secondhand electric vehicles.
As the market continues to evolve, one thing is clear: used EVs are no longer a niche product. For more buyers than ever, they’re starting to look like the smartest choice on the lot.