Let’s be honest, electric vehicles (EVs) are becoming more affordable, but they can still be pricey, particularly with budget models starting at over $35,000. This price tag is generally for new electric vehicles, but used EVs are becoming much more budget-friendly. A recent report even indicates that the price of used EVs is dropping faster than those of gas-powered cars.
Yes, the idea might be a bit unsettling. New EV owners don’t want their shiny rides to plummet in value after just a few years. In the bigger picture though, this trend is actually positive.
According to a report from iSeeCars, in June 2023, the average price of used EVs was 25% higher than that of used gas cars. By May 2024, however, used EV prices had dropped to 8% lower than those of gas vehicles. That’s a significant shift.
In terms of actual costs, the average price of a used EV in February 2024 was $265 less than an internal combustion engine (ICE) vehicle. By May 2024, this gap had grown to a considerable $2,657. This change is noteworthy when compared to June 2023 when EVs were selling for $8,000 more than their gas counterparts.
Several factors could explain this dramatic price shift, and they aren’t as daunting as one might think.
A key reason is that electric cars are finally going mainstream. For the last decade or so, various elements have kept EV prices high. Only in the past few years have electric vehicles been more widely accepted. Initially, they were primarily for early adopters willing to tackle issues like charging. But as EVs become more common, they’re no longer viewed as luxury items.
With EVs being mainstream for several years now, there are more used models available, not just Teslas. As basic economics teaches us, increased supply generally leads to lower prices if demand stays the same. There are now enough used EVs to meet the needs of more buyers willing to purchase a car that’s a few years old. This makes the used EV market more competitive.
A lot of this boils down to the fact that electric cars no longer have the novelty they once did. You’ll find plenty of older Teslas and models from Hyundai, Kia, and Ford that are being resold after three or four years.
So, what does this mean for you? If you’re looking to sell your used electric vehicle, you might not get as much money for it. On the flip side, if you’re in the market to buy a used EV, you’ll likely find better deals now. This is great news because it means electric cars will be more accessible to those who were previously priced out. More EVs on the road is beneficial for the environment and could also accelerate the expansion of charging networks.
There are many places you can look for a good used electric vehicle. CarMax, for instance, had over 800 used electric cars listed at the time of writing. Carvana had even more, with over 1,600 listings.
It’s also smart to check local listings on platforms like Craigslist and Facebook Marketplace. These sites often have numerous car listings, and you might stumble upon a fantastic deal.
What’s next for used EVs? Prices will likely continue to fall as more affordable and better-quality EVs hit the market. Eventually, as used EVs become available in a wider price range, prices will probably stabilize.
Overall, this is a win-win situation. It means electric vehicles are maturing, the technology is improving, and manufacturers are offering a broader range of models to suit various needs.