Now is an opportune moment to consider buying a used electric vehicle (EV). Recent data from iSeeCars reveals that the average price of a used electric car, aged between one to five years, has plummeted by an impressive 25% over the past year in the United States. This significant drop has made used EVs not only more appealing in comparison to gasoline-powered cars but also more affordable than hybrids. To put it in perspective, while one had to pay around $35,621 for a used EV in August 2023, the average price has now dipped to $26,839, representing a substantial reduction of $8,782.
This trend isn’t confined to EVs alone. The prices of used gasoline and hybrid cars have also seen declines, albeit less dramatic. Used gasoline cars now cost 4.4% less compared to last year, priced at $30,292, and used hybrids have become 6% cheaper, standing at $29,759.
With such remarkable price drops, the demand for pre-owned EVs has surged. According to iSeeCars, the days these vehicles spend on the market have reduced significantly. On average, used EVs now spend just 38.6 days on the market, down from 55.3 days in September 2023. This is comparable to the market durations of gasoline (39.6 days) and hybrid cars (37.1 days).
Karl Brauer, Executive Analyst at iSeeCars, notes that this quick turnover underscores a strong demand for used EVs, especially when they are priced competitively, about 8 to 11 percent below their gasoline and hybrid counterparts.
One of the most striking examples is the used Tesla Model 3, which has experienced the steepest price drop among the top 15 used EVs. The Tesla Model 3 is now 25% cheaper than a year ago, with a current average price of $25,931, down by $8,558. Another notable Tesla on the list is the Model S, which has seen a 13.4% year-over-year price reduction, bringing its average price to $53,141.
Other significant price reductions include the Kia Nero EV and the Maserati Levante, which have dropped by 21% and 20.2% respectively, resulting in savings of $5,769 and $11,086.
In summary, it appears that the pent-up demand for used EVs is being met thanks to these substantial price cuts. Consumers are snapping up pre-owned electric vehicles much faster than they did a year ago. Brauer anticipates that the market will stabilize with prices hovering around the $25,000 mark. For those eyeing an eco-friendly ride, now might be the perfect time to invest in a used EV.
