Electric Vehicle Prices Plummeting in the Used Car Market
The trend of declining prices in the used vehicle market has been evident in recent years, with electric vehicles leading the charge. iSeeCars’ recent study has highlighted several electric models that have seen significant price reductions, making them more accessible to buyers in the used car market.
### Top Vehicles with Largest Price Drops
iSeeCars ranked the vehicles with the largest year-over-year price drops as of May 2024, with the Jaguar I-Pace leading the pack with a 30.1 percent drop. The top 10 list also included other electric models such as the Porsche 718 Cayman and Genesis G90, which experienced significant price decreases compared to gas models.
### EVs Driving the Price Drop
Seven out of the top 10 vehicles with the largest price drops between May 2023 and 2024 were electric, signaling a clear trend in the market. On the other hand, all the models with the most significant price gains were gas vehicles. This disparity can be attributed to an oversupply condition of EVs in the market, resulting in falling prices as more EVs hit the used car market.
### Need for Increased EV Demand
The decline in used EV prices can be attributed to buyers’ skepticism and the oversupply of EVs in the market. Without a major catalyst to increase EV demand, prices for these models are predicted to continue falling as more EVs enter the market. This trend is evident in the aggressive price drops seen in used EVs compared to gas models, showcasing a significant shift in the market dynamics.
### Potential Opportunities for Buyers
The iSeeCars study covered 2.2 million one- to five-year-old used models and found that used EVs dropped 29.5 percent year-over-year, compared to just 6.1 percent for gas vehicles. This decline marks the first time that average used EV prices have fallen below gas models, making it an opportune time for buyers to consider purchasing a preowned electric vehicle. With prices dropping and more EVs entering the market, buyers have a window of opportunity to secure a good deal on a used electric vehicle.