Tesla models dominate biggest used car price drops in February

Tesla models dominated the top five biggest used car price drops in February, according to Motor’ Market View analysis.

While the biggest drop of the month was actually the all-electric Mini hatchback (three to four years), down 5.6% to £14,249. But that was closely followed by the Tesla Model 3 (three to four years) down 5.4% to £20,859 and Tesla Model Y (two-three years) down 4.9% to £29,639.

Older versions of the Model 3 (four to five years) were in fifth position, down 4.2% to £19,009.

The only combustion engine vehicle in the top five was the fourth placed Vauxhall Grandland petrol (under one year), down 4.8% to £21,421.

Continued price reductions have encouraged dealers to grow their Tesla stocks, up 4% MoM and 77% YoY.

While the average price of used Teslas on Motors has now fallen 22% since February 2024 and was down 5% month-on-month (MoM).

Lucy Tugby, marketing director of Motors, said: "Our Market View data shows that ongoing price reductions have encouraged more dealers to add Teslas to their stock mix.

"With Tesla Model 3 prices averaging £20,300, these vehicles are becoming more affordable for consumers.

“We will closely watch demand metrics as Tesla faces off against an increasing number of EV options from both emergent and legacy brands."

Overall, average dealer stock volumes in February were down 8% MoM from 53 to 49 units, in line with 50 units last year.

The drop is on the back of dealers moving to restock in time for January with car supermarkets down 12% MoM from 201 to 177 units and franchised dealers down 14% from 60 to 52 units.

While independents remained unchanged at 37 units.

Average advertised prices realigned in February, down 1.2% (£222) to £17,685, having hit a 14-month peak of £17,907 in January, but up 3.7% (£632) year-on-year.

The drop was driven by car supermarkets which were down 1.4% MoM from £17,331 to £17,090, while franchised dealers were up 0.8% MoM at £24,441 and independents increased 1.1% to £12,799.

The biggest downward price mover by fuel type was electric which dropped 2% MoM from £25,683 to £25,177, a YoY fall of 13% from £28,829. Diesels were down 1.3% to £15,012, followed by hybrids down 1% to £25,072 and petrol dipped 0.9% to £16,833.

Overall, consumer demand was brisk with days to sell improving MoM from 36 to 34.5, with franchised dealers achieving the fastest sales at just 24 days.

Tugby said: "February saw dealers trading through the inventories they had built in January, with buyers benefiting from some competitive prices, as witnessed by faster sales.

“These dynamics left many dealers well placed for the March plate-change where the influx of trade-ins and part exchanges from the debut of the 25-plate will carry momentum into the second quarter."