Electric vehicle prices have been dropping rapidly in the used car market, with a 25% decrease in the past year. This has made the average price of a used EV in the U.S. now lower than the average price of used gas cars and hybrids. The Tesla Model 3, Kia Niro EV, and Hyundai Kona Electric are among the models leading this trend. The price drop has accelerated sales of used EVs, with cars spending fewer days on lots before being purchased. Affordability is driving this surge in sales, as used EVs have lost 24.7% of their value in the past year compared to only 6% for used hybrids and 4.4% for used gas cars.
Decrease in EV Prices
Used EV prices have dropped 24.7% since September 2023, compared to 6% for used hybrids and 4.4% for used gas cars. This price drop has brought EV prices more in line with demand, resulting in a faster turnover rate. The price drops are not as drastic as before, with EV prices leveling off at around $25,000. This has led to used EVs spending an average of 38.6 days on the market, similar to gas cars and hybrids.
Affordability and Sales
Used EV prices are now on par with demand, resulting in faster sales and decreased time spent on lots. People waiting for a good deal on a used electric car have been rewarded as prices have dropped significantly in the past year. This has made used EVs a more attractive option for buyers, especially with lower price tags and improved technology.
Popular Used EV Models
Several popular used EV models have seen significant price drops in the past year. The Tesla Model 3 now has an average price of $26,000, the Kia Niro EV is priced around $22,000, and the Nissan Leaf costs $16,000. Other notable low-cost options include the Chevy Bolt EV and the Jaguar E-Pace, making it a great time for mass adopters to consider purchasing a used EV.
Future Outlook
As automakers aim to hit the $25,000 price tag with their next-generation EV models, the used EV market is expected to stabilize at this price point. While demand for hybrids remains steady, the significant price drops in used EVs have made them more attractive to buyers. Overall, if you’re in the market for a used EV, there has never been a better time to make a purchase.