Prices of used electric vehicles have dropped significantly, now lower than prices of internal combustion engine vehicles

In recent data released by iSeeCars, it has been found that the average prices for used electric vehicles (EVs) have fallen below those of used gasoline cars in February, and this trend has continued to decrease. This marks a significant shift compared to previous years, where used EV prices had been steadily increasing. Let’s take a closer look at this downward trend in used EV prices and its potential impact on the EV market.

### The Decline in Used EV Prices
According to iSeeCars’ analysis, used EV prices have stabilized in 2023 after experiencing a surge for the past two years. However, this year has seen a significant decrease in used EV values. While used-car values overall have dropped, the decline in EV prices has been much steeper. On average, gasoline car values have decreased between 3% and 7% over the past year, while used EV values have seen a decrease of 30% to 39%.

### Model-Specific Price Decreases
Certain EV models have experienced even larger decreases in value. For example, the Jaguar I-Pace saw the biggest drop in prices, with a 30.1% decrease year-over-year. This was followed by the Chevrolet Bolt EV (28%), Hyundai Kona Electric (26.5%), Kia Niro EV (24.8%), and Nissan Leaf (24%). Even popular models like the Tesla Model 3 have seen their prices fall below those of comparable gasoline cars like the BMW 3-Series.

### Trend Analysis and Market Impact
The overall trend of used EV prices surging in 2021 and peaking in 2022 signifies a shift in the market dynamics. With prices now on a downward trajectory, it is evident that the demand for used EVs has decreased. This decline in prices may be attributed to the volatility of new EV prices, as well as last year’s sudden price cuts by Tesla. However, this could also present an opportunity for potential buyers who have been hesitant to purchase a new EV due to high costs.

### Industry Response and Consumer Behavior
As new EV prices remain a concern for many consumers, the drop in used EV prices could potentially attract more buyers to the market. According to J.D. Power, the decrease in consumer consideration for EVs is primarily driven by concerns over affordability. Lower prices for used EVs could help alleviate these concerns and make electric vehicles more accessible to a wider range of consumers.

### Future Outlook and Conclusion
The current trend of declining used EV prices signals a shift in the EV market landscape. While this may present challenges for sellers, it could be a positive development for buyers looking to purchase an EV at a more affordable price point. It will be interesting to see how this trend continues to evolve in the coming months and whether it will have a lasting impact on the adoption of electric vehicles in the used car market.

Share This Article