Used EVs More Affordable Than Ever
Over the last couple of years, we’ve often cited higher purchase prices as one of the reasons that consumers have rejected electric vehicles. That has been true for shoppers looking at used cars as well as new cars – used EVs tend to be newer, they were typically more expensive to purchase new, and are often packed with tech. But, thanks to slowing sales of new EVs, a challenging economy, and other factors, used electric cars are more affordable now than they’ve ever been – so much so that they’re even cheaper than used gas cars.
Used Electric Cars vs Used Gas Cars
This news comes courtesy of industry watcher iSeeCars, a company that regularly tracks used vehicle prices across the board. Their latest data, released in June, shows that used EV prices fell below used gasoline vehicle prices in February 2024 for the first time, with the average used EV $265 cheaper than the average used gasoline vehicle. By May 2024, that gap had actually widened: used EVs were over $2,600 cheaper than gas cars. That’s a huge shift compared to a year ago, where the average used EV was more than $8,000, or 25 percent, more expensive than the average used gas car.
The drop in used electric car values comes along with a general softening of the used-car market, as supply chain restrictions have eased and new cars become easier to purchase. But while the averaged use gasoline car’s value has dropped between just 3 and 7 percent year-over-year, used EV values have dropped between 30 and 39 percent in the same period. In May 2024, the average used EV was $28,767, or 8.3 percent below the average ICE car, which was $31,424. Just a year ago, the average used EV was $40,783 and the average used ICE car cost $33,469.
Tesla Model 3 vs. BMW 3 Series
One interesting comparison that iSeeCars makes is between the Tesla Model 3 and BMW 3 Series – high-selling four-door sedans with similar prices, one electric and one gas. In June 2023, a one to five year old Tesla Model 3 was, on average, priced $2,635 above a used one to five year old BMW 3 Series; by May 2024, that same one to five year old Tesla was now $4,806 less than the BMW. (Interestingly, in January 2024, the Tesla Model Y crossover had a $4,570 price premium over the BMW X3, though by May 2024, that premium had dropped to just $175.)
What EVs Have the Biggest Price Drops?
Which one to five year old EV models have experienced the biggest drop in value compared to this time last year?
· Jaguar i-Pace: average used price $32,651, $14,053 less than in May 2023
· Chevrolet Bolt: average used price $18,081, $7,041 less than in May 2023
· Hyundai Kona Electric: average used price $21,602, $7,780 less than in May 2023
· Kia Niro EV: average used price $22,893, $7,561 less than in May 2023
· Nissan Leaf: average used price $17,593, $5,546 less than in May 2023
· Tesla Model 3: average used price $28,439, $8,932 less than in May 2023
· Tesla Model X: average used price $59,296, $13,690 less than in May 2023
· Tesla Model S: average used price $55,340, $10,399 less than in May 2023
iSeeCars’ survey looked at over 2.2 million 1- to 5-year-old used cars sold between May 2023 and 2024. The average prices of each model were compared between the two time periods.
Now Is a Great Time to Buy a Used EV
While all of this may be distressing news for current EV owners that are looking to sell or trade in their vehicles, it’s great news for people in the market for a used electric car. The instability in used EV values has continued to push prices downwards, and iSeeCars’ Karl Brauer says that used EV prices have yet to bottom out.
Don’t forget, too, that in addition to more affordable pricing, EVs selling for less than $25,000 – which is an ever-increasing number – are also eligible for a $4,000 federal tax rebate, if you qualify.
