FYI: The average price of used EVs has dropped significantly, making them an attractive option for budget-conscious buyers and environmental enthusiasts alike.
Used EV Prices Plummet: A Buyer’s Market in 2024
Over the past year, the prices of one to five-year-old used electric vehicles (EVs) have plummeted by a striking 25%. The current average price of a used EV in the United States now stands at $27,000, which is notably lower than the average price of used gasoline and hybrid cars. This trend is led by models such as the Tesla Model 3, Kia Niro EV, and Hyundai Kona Electric—all at the forefront of this significant price drop.
Faster Sales Fueling the Market
Interestingly, this sharp decline in prices has accelerated the sales of used EVs. These vehicles are now spending fewer days on dealership lots, making them hot commodities in the resale market.
For over a year, we’ve observed the rapid depreciation of electric cars, a trend that kicked off following Tesla’s aggressive price cuts. This has created a whirlwind market shift that’s both thrilling and slightly worrisome. Nonetheless, the focus remains on the positive aspects: lower resale values offer consumers the chance to purchase a technologically advanced, modern EV for less than the price of a used hybrid or gas vehicle. This is not only a win for your wallet but also a win for the environment.
A Deep Dive into the Stats
A recent study by automotive research firm iSeeCars provides a comprehensive look into the dynamics of the U.S. used EV market. According to the study, prices for cars like the Tesla Model 3, Nissan Leaf, Hyundai Kona Electric, and Kia Niro EV have dropped six times faster than those of gasoline cars over the last year. Specifically, used EVs have lost 24.7% of their value since September 2023, compared to only 6% for hybrids and 4.4% for gas cars. This data comes from a dataset that analyzed 1.6 million one to five-year-old used cars sold between August 2023 and 2024.
Karl Brauer, iSeeCars Executive Analyst, stated, “The substantial drop in EV prices over the past year appears to have brought them in line with demand, with used EV days-on-market much lower today, reflecting a faster selling rate compared to a year ago.” In simple terms, affordability is driving these sales.
Market Stabilization and Future Projections
While the price drop is significant, Brauer notes that it isn’t as steep as it was previously. Used EV prices were plummeting by 30-40% at the end of 2023 and the start of 2024. The current 25% decline indicates some level of stabilization. The average cost of a used EV is now $27,000, with expectations to stabilize around $25,000—a target many automakers are aiming for with their upcoming models.
In terms of sales speed, the average time a used EV spends on the market has decreased from 55.3 days in September 2023 to just 38.6 days recently, matching the sales timeline for used gas cars and hybrids.
Steady Demand for Hybrids
Interestingly, while EV prices have been quite volatile, the demand for hybrids has remained consistent. Used hybrid prices are down merely 6% over the past year, contrasted with the 24.7% drop for used EVs.
Great Time for Consumers
“If you’ve been waiting to snag a good deal on a used electric car, now is the time,” Brauer mentioned. “If you bought a used EV a year ago, you likely overspent, but today’s prices make used EVs a viable option—provided they fit your lifestyle and vehicle needs.”
Leading Models and Their Prices
Here are some standout models leading this trend:
- Tesla Model 3 now averages around $26,000, more than $8,500 less than a year ago.
- Kia Niro EV is approximately $22,000, down by about $6,000.
- Nissan Leaf’s average price is $16,000, which is $4,000 cheaper than last year.
- Other notable low-cost options include the Chevy Bolt EV and Jaguar E-Pace.
For new mass adopters, accepting used models can be quite rewarding. The Tesla Model 3, in particular, is a fantastic option even before the release of the Highland model. It benefits from Tesla’s extensive Supercharger network, offers over 300 miles on a single charge in some trims, and continues to improve with regular software updates.
Conclusion
So if Tesla and CEO Elon Musk’s actions don’t deter you, the Model 3 remains a fantastic bargain. If not, there are still plenty of other fantastic options out there. Whether you’re an eco-conscious buyer or just looking for a great deal, now is a great time to consider a used EV.
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William Kouch, Editor of Automotive.fyi
