The Surprising Shift in the Used Electric Vehicle Market

The used electric vehicle (EV) market has undergone a remarkable transformation, with prices plummeting and demand surging. Contrary to the perception that EVs are out of reach for many consumers, the latest research reveals a compelling story of affordability and accessibility in the pre-owned EV segment.

Unlocking the Potential of Used EVs: A Buyer's Paradise

Affordability Takes Center Stage

The used EV market has emerged as a haven for budget-conscious consumers. According to the latest analysis by iSeeCars, the average price of a 1- to 5-year-old used EV is now 11.4% lower than that of similarly aged gas-powered cars and 1.8% below hybrids. This remarkable shift has made EVs more accessible to a wider range of buyers, challenging the long-held notion that electric vehicles are out of reach for the average consumer.The study, which examined over 1.6 million 1- to 5-year-old used cars sold in the past year, found the average cost for an EV was $26,839 in August, compared to $30,292 for a gas-powered car and $29,759 for a hybrid. This price disparity is a testament to the rapid depreciation of EV values, which have plummeted by an astounding 24.7% – nearly $9,000 – over the past year.

Demand Surges as Prices Plummet

The drop in used EV prices has not gone unnoticed by consumers. The study found that used EVs have been selling faster as their prices have fallen, with their time to sell outpacing that of gas-powered vehicles and hybrids. In fact, all three vehicle types are now taking nearly the same amount of time to sell on average, indicating a strong demand for used EVs when priced 8% to 11% below their hybrid and gasoline counterparts."Used electric cars have dropped from an average of 55.3 days in September 2023 to 38.6 days in how long they take to sell," said iSeeCars executive analyst Karl Brauer. "This indicates solid demand for used EVs — if they are priced 8% to 11% below hybrid and gasoline vehicles."

The Standout Performers

The study also highlighted the models that have experienced the most significant value drops in the used EV market. Five of the six models that lost the most value over the past year are EVs, led by the Tesla Model 3, which saw a 24.8% decline to $25,931. Other notable performers include the Kia Niro EV, the Nissan LEAF, the Hyundai Kona Electric, and the Chevrolet Bolt."People waiting for a good deal on a used electric car have been rewarded for their patience," Brauer said. "If you bought a used EV a year ago you probably bought too soon, but at today's prices a used EV is starting to make sense — assuming your lifestyle and vehicle needs line up with the benefits and limitations of an EV."

A Shifting Landscape: Implications for Buyers and Sellers

The dramatic changes in the used EV market have significant implications for both buyers and sellers. Consumers who have been waiting for the right time to purchase a used electric vehicle have been presented with a golden opportunity, as prices have dropped substantially, making EVs more accessible than ever before.On the other hand, the study suggests that those waiting for a significant price drop in traditional gasoline-powered vehicles have been disappointed, as their values have remained relatively stable. This has forced some buyers to either wait longer or settle for a used car at a higher price than they had anticipated.As the used EV market continues to evolve, it will be crucial for both buyers and sellers to stay informed and adapt to the changing landscape. With the potential for further price stabilization and the ongoing advancements in EV technology, the used EV market is poised to play an increasingly important role in the broader automotive industry.