Used electric vehicle prices are in free fall, and that’s to the benefit of drivers who are intrigued with EVs but can’t afford the high price points.
Now, those price points have shifted downward in the past few months, according to a new study from iSeeCars.
DON’T MISS: Tesla Posts Record Second Quarter Deliveries
June sales were a real flashpoint for U.S. electric vehicles and not in a good way. EV orders dropped 29.5% for the month, led primarily by steep declines in Tesla vehicle values.
“Used car prices overall are stabilizing,” said iSeeCars executive analyst Karl Brauer. “But there’s been a massive drop in used electric vehicle values this year, with bigger drops every month and no indication of any floor in sight.”
The study analyzed 1.8 million used EVs and tracked their sale prices from June 2022 to June 2023.
In that period, the bellwether Tesla Model 3 saw the largest price decline, falling 30.5%, for a cash loss value of $16,258. Meanwhile, the average gasoline-powered used vehicle was down only 3.6% for the month, losing $1,237 for auto dealers.
Used Electric Vehicle Pricing Collapses
“Pricing for used electric vehicles, led by Tesla, has simply collapsed in 2023, falling farther and faster each month since January,” said iSeeCars Executive Analyst Karl Brauer.
More Tesla:
- Why Tesla Stock Is Going Through the Roof -- And Where It Could Go Next
- Elon Musk's Latest Tesla Announcement Could Shake Up the Entire EV Industry
- Elon Musk Has a 'Purity' Around Motivation For Game-Changing EV Deal
The EV pricing slide has been months in the making. In May 2023, the average price of a 1.5-year-old EV fell by 28.9% and fell by 24% in April on a year-to-year basis.
“Used electric vehicle prices have fallen by nearly 30%, and the free fall keeps accelerating, growing from 8.8% in January to 16.8% in March to 29.5% in June,” the report noted.
The 2023 EV price decline should continue as auto buyers weigh new vehicle purchases with an eye on their household budget. Increasingly, that decision was going against an EV purchase.
Maybe not anymore, given used EV pricing trends.
"A year ago, used EV prices were on the upswing, rising faster than the average used car,” Brauer said. “Electric vehicle prices are now falling at nearly 10 times the rate of the average used vehicle, reflecting a clear shift in EV supply and demand.”
“(This year) year fuel prices have stabilized, interest rates have risen, and shoppers are cautiously weighing their vehicle purchase options as they seek maximum value from their car-buying dollar,” he added.
