High supply and low demand for used EVs means plummeting prices
Used EV prices have fallen off a cliff, according to a new study.
Used vehicle prices in general dropped by less than 4 percent year-over-year for the third month in a row, said an iSeeCars.com survey, compared with used electric vehicle prices which have fallen by nearly 30 percent. And the drop “keeps accelerating, growing from 8.8 percent in January to 16.8 percent in March to 29.5 percent in June.”
Tesla’s Model 3 and Model X are leading the tumble in used car pricing, followed by the Nissan Leaf and Tesla Model S, the study reported.
“A year ago, used EV prices were on the upswing, rising faster than the average used car,” said iSeeCars Executive Analyst Karl Brauer. “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.”
Competition with the used segment and other manufacturers is also dropping prices of new EV sales, as reflected by discounts required to keep the product moving, according to a Reuters story. “The U.S. EV market is growing, but not fast enough during the latest quarter to prevent unsold EVs from stacking up at some automakers’ dealerships or to allow Tesla to avoid new price cuts, according to analysts and industry data,” the story said.
Reuters cited data from Cox Automotive that suggested dealers for established automakers such as General Motors, Ford, Hyundai and Toyota have more than 90 days’ worth of unsold EVs at their stores at current sales rates, while the average for all vehicles is a 52-day supply.
Ford dealers, for example, had 86 days’ worth of F-150 Lightnings and 113 days’ worth of Mustang Mach-E electric crossovers on hand, Cox said, though Ford said the data overstates the supply. Ford cut the price of the Mach-E in May.
“Used electric vehicle prices are in a free-fall, dropping 15.7 percent since January and by an increasing amount every month so far in 2023,” said Brauer. “With Tesla cutting prices on new models, its used EV values have tumbled. And because Tesla makes up the bulk of the used EV market the dramatic drop in Tesla values has impacted the entire category.
“Used car prices are still well above pre-pandemic levels, but they’ve come off their highs from last year and should be relatively stable over the next 6 to 12 months,” said Brauer. “Shoppers in need of a used car can find deals now, particularly on used Teslas, which have lost substantial value over the past 12 months.”
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I have watched used Chevy Volts off and on for about 5 years now. Always holding value just enough above my temptation level to snag one as an experiment.
Range has increased so fast that many of the older EV are undesirable to a chunk of the interested market. Then you have the horror-stories of battery pack costs in older EV.
Add in those that are paying attention and realizing that EV are still in the 8-track to cassette phase “maybe I should wait for the CD” makes sense… waiting for the MP3 might make even more.*
*unless you swap your vehicle for new every 3 years anyways as you likely won’t get burned by having the now-obsolete devalued used car.
I would never consider buying one of those useless , worthless cars or trucks!!
We loved our Volt. Had it for 8 years, and only traded it in, cause we could use another tax credit, and the battery warranty was up. Wife drove it to/from work (daily 36 miles round trip) for that whole time. about 4 oil changes, and tires was the only maintenance needed. Could go from April to October on a tank of gas.
‘Gasoline Forever!’ was on a t shirt being sold at the Iola Show last week. Wanted one…they were sold out. Was out and about in suburban Mpls and drove up a car dealer row yesterday. Could not believe the amount of new EV’s sitting there not sold. All makes.
This shows that no one trust a used EV. The reliability is definitely not good on these vehicles, I can only imagine how it will cost to fix one of these!
I don’t trust a new ev either, when’s the govt going to learn you can’t jam this junk down our throats.
Sounds as though you are hopeful that the government might someday. Me? Not so much.
If you wanna drive a battery car, that’s fine. Nobody cares. Ice vehicles are not causing the CO2 problems. Just understand that before you try to save the planet. Let’s do an environmental impact study of what it cost to mine all the shit out of the earth to make one battery and what do we do with it when it’s no longer becomes viable.
Totally hilarious. EVs aren’t competitive with IC even now. Order of magnitude leap needed in battery cycle life and cost before most people will seriously consider one. 🤪
Its the darn batteries, stupid. Crazy expensive. My use case would be perfect for a “60/60” EV – 60 real world miles at 60 MPH – and WITHOUT a bunch of expensive, needless “technology”. Could be done with cheap lead-acid batteries. Unfortunately, consumers are now accustomed to simply replacing things every 2 or 3 years – thanx to the silly smartphone. That’s fine, I’ll keep my 40 year old Diesel going – far cheaper and far nicer to drive than anything made today – petrol or electric.
A bit of a surprise to me, and I feel sorry for those who have bought EV’s (including family members). Car purchase is always a gamble, though.
Further proof that humans are incredibly short-sighted, and far too eager to leap towards the unknown without enough forethought.
It’s called the “next shiny thing”.
Yes, EV’s are evil the batteries are toxic and the government wants to control us so we must all go back to internal combustion engines because change is hard. Personally, I think steam-powered is a little too modern for my taste and choose the far superior horse and buggy.
Don’t even get me started on LED lightbulbs. I am still using candles made from animal fat.
Seriously, you can not stop progress and everyone will soon be driving electric cars whether you want to or not.
Progress is great, and true progress takes the world by storm, without having to be mandated. No one forced IC cars on those horse and buggy folks. EV cars have been around as long as IC cars, but what held them back is still holding them back to a certain extent. When the EPA mandates specific targets for IC’s to hit, it is essentially creating costs to the IC’s to make the EV’s cost competitive.
The fact that this “progress” as you call it is being forced by government makes your examples irrelevant. Apples and oranges.
And don’t forget the fee that going to be assessed to replace the gas tax for the roads. There’s no free lunch.
If you build them, we won’t buy them. 🤣👎
I’d bet that the prior respondents have never owned an EV, they couldn’t be more wrong. Teslas have been much more reliable than ice cars for us and a pleasure to drive. This from someone who owns a 2015 S plus two 3’s. One has 97,000 miles and one 84,000. Both zero maintenance but for replacing the 12v batteries that power accessories. Kind of ironic it’s the old school part that failed.
I now also own a Rivian R1S which is fantastic but for the lack of charging network. Luckily Elon to the rescue next year. Lest anyone think I’m an ice hater, I love my classic gas cars (Ford GT, ‘60 Ford Starliner etc). My Mercedes GLS was super, loved the Yukon. It’s just that electric is better and more reliable. Once you have one you realize it. Til then bag away
I could not agree more. I own two Tesla’s (one with 83,000 miles) and they have been by far the best cars we have owned. Yes, I also have ICE cars and motorcycles and love them too (for a different reason).
People tend to fear what they do not understand.
The only thing I fear is living in a world that I can no longer afford to own or drive a car in.
Again, you couldn’t be more wrong
And it’s not best for everyone, I wouldn’t buy one if I lived in an apartment. Taking my Rivian out searching for juice when I’m visiting Vegas sucks. Tesla is a game changer with their network and pricing on the 3 and Y. Still, for apartments without reliable chargers it’s rough.
I’m also a big fan of solar, at least til CA just changed the rules for excess generation. My panels pay for themselves in 6-8 years and after that my energy is almost free, it’s a no brainer of your roof is solid and you don’t need a reroof in 10.
I’m not for forcing anything on anyone, I’m ok with subsidies til a good tech catches as it has now. EV mandates and other energy imo way out of line and unrealistic.
Rich maybe but I’ve been very poor too so I understand the assumptions. Best to all.
THE SKY IS FALLING, THE SKY IS FALLING! Oh goodness Chicken Little whatever shall we do?
This article is bullshit. I’m actively looking for electric cars, and prices decreased several months ago on new Teslas, thereforeD use prices went down SLIGHTLY. A ten year old Tesla is still impossible to buy under $30k.
As of last week the dealers i’ve talked to now will sell for sticker price instead of $20k over sticker like last month. Does that count as prices falling like a rock?????
Bunch of mad old men who are frightened of technology, I’m refering to the authors, and the others folks leaving the comments.
The purchase price is just the beginning. Many will soon need new, very expensive batteries.
Based on what data? Batteries are rated to last for hundreds of thousands of miles. Tesla batteries on average lose only 12% of their capacity after 200,000 miles. Do some fail early? Sure, but it’s extremely rare.
Wow an oversupply is causing a drop in used prices. How unusual that this is happening. /sarcasm
Truth of the matter is that ev’s are to expensive and not practical for the majority. And the fact that they are being mandated (forced) by government makes me more suspicious and less likely to consider one, period.