New Electric Vehicles: Prices are Falling and Inventory is Growing
New electric vehicles are constantly entering the market, leading to fluctuating demand and changing tax credit rules for automakers. However, the silver lining for buyers is that prices for electric vehicles are decreasing as inventory levels continue to rise. CarGurus’ February Intelligence Report examined the movement in new and used EV pricing and supplies, unveiling some interesting trends.
**New EV Pricing Trends**
CarGurus found that new EV pricing decreased by 8.2% since February 2023, with a significant 174% increase in available inventory. On the other hand, used EVs experienced a similar trend, with average prices dropping by over 20% and inventory only rising by 27%.
**Comparison with Gas-Only Vehicles**
Despite the positive pricing trends, electric vehicles still remain more expensive than their gas-only counterparts. New EVs carry a $299 monthly payment premium over gas models, while used EVs have a $239 higher monthly cost. However, this cost disparity could change if EVs don’t improve their days on market metric. New EVs spent an average of 107 days on dealers’ lots compared to 76 days for new gas models, while used EVs sat for 81 days compared to 84 for used gas models.
**Fastest-Selling New EVs for 2024 and Slowest-Selling New EVs for 2024**
CarGurus’ study identified the Ford E-Transit as the slowest-selling new EV, sitting on dealers’ lots for an average of 159 days. The top five fastest-selling new EVs for 2024 include the Kia EV9 (22 days), GMC Hummer EV SUV (27 days), Hyundai Kona Electric (30 days), Mini Cooper (35 days), and Cadillac Lyriq (37 days), with an overall new EV average of 80 days. On the other hand, the slowest-selling new EVs for 2024 were the Mercedes-Benz EQS (121 days), VW ID.4 (122 days), Ford Mustang Mach-E (151 days), Mercedes-Benz EQS (157 days), and Ford E-Transit (159 days).
**Used EV Trends**
The Tesla Model 3 and Model Y were the fastest-selling used EVs, while the Polestar 2 and BMW iX were the slowest. CarGurus also noted that Toyota and Honda dominated the hybrid space, but the Ford Maverick led the used market with just 27 days on dealers’ lots.
In conclusion, the electric vehicle market is seeing a shift with falling prices and increasing inventory levels. While EVs may still be more expensive than gas-only vehicles, improvements in days on market could lead to greater price competitiveness in the future. Brands like Tesla, Kia, Hyundai, and Cadillac are performing well in the new EV market, while Ford is leading the way in the used EV space. As electric vehicle technology continues to evolve and consumer demand grows, it will be interesting to see how pricing and inventory levels further develop in the coming years.