Consumers looking to save money by buying an electric vehicle and avoiding soaring gas prices have paid a premium over the last year, a new report says.
New data from Recurrent, a car industry analysis company, has found that the overall price of electric vehicles has skyrocketed 25% year-over-year.
In fact, demand for EVs is so high that people owning them who decide to sell have recouped almost all of their original purchase price, the report found.
The market is likely to keep those higher prices, Recurrent said.
“We have been tracking used EV prices for the past year as they increased month after month, always with the assuming that they would come back down,” Scott Case, CEO and co-founder of Recurrent, said in a statement.
“Based on soaring demand and limited supply, we should plan for these higher EV valuations to be the new normal,” he said.
Buyers Should Consider Older Models
For its report, Recurrent crunched the numbers on supply chain issues, a spike of consumer interest in Tesla (TSLA) models from certain years, overall EV sales trends, and how the used car market has been affected by higher prices for new vehicles.
The result is a deep dive look at a market that was worth $163.01 billion in 2020 and is projected to be worth $823.74 billion by 2030.
It also gives a glimpse into how buyers are using this new technology, and what it looks like after they have had an electric vehicle for a few years.
Consumers alarmed by double digit increases in gas prices have been looking to electric vehicles as a way to help stabilize their fuel budgets.
But many have been stymied by the wait times and rising prices of luxury vehicles like Tesla, which is by far the leading brand name in the sector.
That's why more potential EV users should consider buying used cars from other manufacturers, the report found. TheStreet has a breakdown here of where you can find cheaper electric vehicles.
"EV prices will likely remain inflated for some time, so shoppers may benefit from buying an older car if the newer models are outside their budget," Recurrent said.
Looking to Resell Your Tesla?
People who have already bought Teslas and who are ready to pass them along are in a sellers market.
The report found that with so much demand and long delays for new models, now is an excellent time for dealers and owners to churn used cars back to consumers.
"Popular vehicles like the Tesla Model 3 and Ford Mach-E owners, for example, can make a significant profit if they sell their used cars in the current market," the report found.
"Higher used EV prices aren't going anywhere, considering the supply chain strains, rising gas prices and equipment shortages."
