Last year, used EV prices were 25 percent higher on average. Now, they’ve dropped by eight percent.
The average transaction price for used cars remains significantly higher than pre-pandemic levels, but not all vehicles are retaining their value equally. A recent iSeeCars study reveals a growing disparity between used gas-powered vehicles and used electric vehicles, with no signs of slowing down.
In May, the gap between the average prices of used EVs and gas cars reached a record high of 8.5 percent, or $2,657. The average price for a used EV last month was $28,767, compared to $31,424 for a used gas car.
That’s a significant drop from June 2023, when used EV values were 25 percent higher, or $8,000 more on average, than their gas-powered counterparts. At that time, the average EV cost $40,783, while gas cars averaged $33,469. According to iSeeCars’s data, EV prices steadily declined through mid-2023, stabilized in the last few months of the year, and then began to decline again in February.
The average price of a used gas car has remained stable at around $31,000 for the past year, fluctuating by no more than seven percent compared to last year, and actually increasing by about $375 from February to May 2024.
This trend is also reflected in the price difference between the Tesla Model 3 and the BMW 3 Series. Last June, a used Model 3 was priced $2,635 higher than a used 3 Series. Eleven months later, the Tesla’s price had dropped to $4,806 below that of the BMW. The study also highlighted that EVs make up the top seven used cars with the most significant price decreases over the last year.
There’s a lot of pessimism surrounding electric vehicles right now. Sales are slowing, prices are dropping, and competition is intensifying globally as automakers strive to make the technology both profitable and desirable.
Poor resale values could hinder EV adoption, as consumers remain cautious about whether these cars will suit their lifestyles. A vehicle is often a person’s second-biggest purchase, and it’s quickly becoming the largest. Most people are reluctant to risk buying an EV that might not retain its value.
iSeeCars’s study analyzed over 2.2 million used cars, aged one to five years, sold in May 2023 and May 2024.
