The Surprising Surge in Used EV Affordability

The used electric vehicle (EV) market has undergone a remarkable transformation, with prices of one to five-year-old models plummeting by an astounding 25% over the past year. This dramatic shift has made EVs more accessible than ever before, with the average price of a used EV in the U.S. now sitting at a mere $27,000 – lower than the average price of used gas-powered and hybrid vehicles. This trend is being led by popular models like the Tesla Model 3, Kia Niro EV, and Hyundai Kona Electric, which have seen their resale values plunge, accelerating their sales and reducing the time they spend on dealer lots.

Unlocking the Potential of Affordable Used EVs

The Rapid Depreciation of EVs

The used EV market has been undergoing a remarkable transformation, with prices of one to five-year-old models plummeting at a rate that far outpaces their gasoline and hybrid counterparts. This trend can be traced back to the rapid-fire price cuts implemented by Tesla last year, which sparked a ripple effect across the industry. While this may seem concerning at first glance, it presents a unique opportunity for savvy consumers.According to a recent study by automotive research firm iSeeCars, used EVs have lost an astounding 24.7% of their value over the past 12 months, compared to just 6% for used hybrids and 4.4% for used gas-powered vehicles. This dramatic depreciation has brought the average cost of a used EV down to a mere $27,000, making them more affordable than the average used hybrid or gas-powered car.

The Surge in Affordability and Demand

The substantial drop in used EV prices has had a significant impact on the market, with these vehicles now spending less time on dealer lots. The average days-on-market for used EVs has decreased from 55.3 days in September 2023 to just 38.6 days today, indicating a faster selling rate compared to a year ago.This surge in affordability is driving increased demand, as more consumers recognize the benefits of owning a used electric vehicle. "People waiting for a good deal on a used electric car have been rewarded for their patience," said Karl Brauer, iSeeCars Executive Analyst. "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."

The Standout Models in the Used EV Market

The price drops have been particularly pronounced for some of the most popular EV models on the market. The average price of a Tesla Model 3, for instance, has plummeted by over $8,500 in the past year, now sitting at around $26,000. The Kia Niro EV has seen a similar drop, with the average price falling by roughly $6,000 to approximately $22,000. Even the humble Nissan Leaf has become a more affordable option, with its average price dropping by $4,000 to just $16,000.Other notable used EV bargains include the Chevy Bolt EV and the Jaguar E-Pace, both of which have seen significant price reductions. These models offer a compelling alternative for those looking to make the switch to electric without breaking the bank.

The Enduring Appeal of the Tesla Model 3

The Tesla Model 3 remains a standout in the used EV market, offering a compelling combination of performance, range, and technological features. Even the versions that arrived before the Highland update remain highly relevant, thanks to the vast Supercharger network and the car's ability to continuously improve through software updates.For those who are willing to overlook the cultural shenanigans surrounding Tesla and CEO Elon Musk, the Model 3 presents a great bargain in the used EV market. With its ability to cover over 300 miles on a single charge and its seamless integration with the Tesla ecosystem, the Model 3 continues to be a top choice for those seeking a high-tech, modern electric vehicle at an affordable price point.