It’s been no secret that the adoption of all-electric vehicles has faced some serious headwinds as of late, as GM Authority recently reported that 46 percent of Americans who owned an EV wanted to transition back to ICE-powered offerings. With this in mind, it may come as little surprise to learn that prices for used electric vehicles are currently in a free fall.
According to a report from iSeeCars, prices for used EVs dipped below their used gasoline-powered counterparts for the first time in February 2024. From there, the gap between the two has only widened to $2,657 in May 2024. This is quite the intriguing development, as pre-owned all-electric vehicles were roughly $8,000 more valuable than ICE-powered vehicles back in June 2023.
“There’s no denying the crash in used electric vehicle values over the past year,” iSeeCars Executive Analyst Karl Brauer remarked. “We’ve watched EVs prices fall between 30 and 40 percent since June of last year, while the average gas car’s price has dropped by just 3 to 7 percent in that same timeframe. It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable – and less valuable – than traditional models.”
A deeper dive reveals that used prices for EVs have declined between 30 and 39 percent in the past year, while ICE-powered vehicle values have only dipped between three and seven percent on the same year-over-year basis.
“While the drop in used EV prices is dramatic, what’s more disconcerting is no indication of used EV values stabilizing,” Brauer continued. “At some point used EV prices will have to bottom out, but we don’t appear to be at that point yet. The used car market’s attitude toward electric vehicles shows a dramatic shift over the past year. With so many EVs entering the new car market in recent years, and then flowing into the used market, it suggests an over-supply condition that will continue as more EVs come off lease. Without a major catalyst to increase EV demand, used prices for these models will likely keep falling.”
For reference, iSeeCars analyzed more than 2.2 million one- to five-year-old used cars sold between May 2023 and May 2024 to come up with these figures.
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Comments
*Cough* mostly Tesla
It would be interesting to understand how many of the used EVs that were analyzed were Teslas versus all other brands.
Next consideration would be to look at how the manufacturer has decreased prices for their EVs during that same time period.
The “report” link has some information on that if you scroll down far enough. It’s not just Tesla.
Bummer.
Used EV prices are tanking because A) nobody wants them and B) nobody wants one out of warranty because of the cost of the batteries.
So you’re saying people are ignorant about the length of EV battery warranties and the low likelihood that the battery would ever need to be replaced during the life of the vehicle? I can buy that. People do tend to be very ignorant of reality.
more likely they understand the fact that unless you live in a relatively larger city, there’s no place to charge them, you can’t take them on a cross-country (in some cases a cross-county) journey, and the cost of putting in a level-2 charger in your home isn’t cheap. Not to mention the fact that many municipalities and states are now hitting owners with surcharge taxes because they can’t get it from them at the pump, and the weight of a small EV causes as much or more wear on the road as a 3/4 ton pickup.
nice try, calling people ignorant, though…
I would agree with that, but that was not what the post I responded to said. The post I responded to was spreading FUD.
A level two charger cost about $800 installed. You’re correct that cross-country trips can be challenging in EV. How many have you taken in your life? I am 57 years old and have logged hundreds of thousands of miles but never taken across country trip. The vast majority of people drive less than 50 miles a day. If you’re going to drive cross country, you’d be better off renting an ICE and putting the wear and tear on that. The charger problem is a consideration and it’s much more difficult if you live in an apartment as opposed to single-family house. However it is still far cheaper to operate an electrical vehicle over its lifespan than it is in ICE. Lastly, they do weigh more. However it seems like virtually every pickup truck that I see on the road is rigged out and weighs as much as EV sedan. Personally, I’m kind of happy about the news, I’m picking up a new Tesla next month and would like to get a used y for a good price as well. I agree with the woman who said that people do not understand battery warranties. And I would be reluctant to buy an EV from someone other than Tesla due to test was outstanding warranty. Not to mention, it has not been unusual to get a half million miles out of a Tesla based on leasing services experience in California
I get the impression that you lived in California your entire life, and never lived in a state when the temperature drops below zero every winter. EV chargers are practically useless in below freezing weather. You won’t get close to 100,000 miles on an EV is this harsh cold environment. Didn’t take me any extra to fill my ICE vehicle in 13 below zero weather.
Cold weather has nothing to do with how long the battery will last. And a warmed EV battery will charge just as fast in the winter.
I will agree if your battery is cold soaked and you drive a short distance to a charger the battery will take longer to charge.
You name should Karen not kary lol wow just because someone didn’t agree with you call them ignorant. That makes you the one
As much as I might not agree with k caddyman.. the ‘life of the vehicle’ is probably the average time a person keeps a car that he is referring to… which is like 7 years… so he would be right. Now with continued incentives (bribes of taxpayers money with interest) that can offset potential battery replacement… given everything else is updated I.e. software updates..
It is not that I disagree. It is that the post was nonsense and spreading FUD.
EVs are not mainstream yet. Those coming off lease have no fan-base of buyers. The average used car buyer is a practical buyer by necessity, and 2-5 year old gas powered cars are simply more practical. I expect it will take until 2030 for used EVs to be a reasonable substitute for used gas vehicles.
Try 2050 to have a nationwide matrix that’s comparable to gas if we’re lucky… some people are just getting reliable high speed internet in rural areas…
Maybe by about 2030, all of today’s new EVs will need new batteries. That will surely make them a hot ticket item …..
Not just the batteries but the insurance is high and all the other electric semi experimental parts are expensive to repair . Need to take to dealership and they don’t have the expertise .
There needs to be large number of a specific model on the road in order for the third party marketplace to invest in ev .
Prius batteries are affordable on replacement market for example . With large numbers of Toyota hybrid taxi and Ubers in nyc . Repairs not that expensive and large battery refurbished supply .
In need for second vehicle to bring child to school and errands . Have driveway with place for charger and solar panels on garage roof . Even at depressed prices , used ev just don’t make sense . Vehicle will has potential to be worthless if get into minor accident that damages high cost system . Only one maybe can make case for is Tesla model 3 since a lot of them out there but so many different battery variations or there so no common parts between identical looking cars at volume
You are spot on out of warranty batteries…people are learning it can cost more to replace the battery than buying a whole new car
When Hertz “dumped” about 20,000 EV’s (mostly Tesla’s) early in 2024 it flooded the market with vehicles and the market adjusted accordingly. The reality is this trend covers all EV’s, not just 2-3 brands.
There are many reasons for this, including but not limited to:
1. New prices decreasing, particularly Tesla.
2. Used supply increasing due to Hertz dumping and people who cannot charge at home discovering they made a huge mistake.
3. The $7,500 EV credit applying to any EV, not just the few that qualify when you purchase an EV.
4. Better new options coming on the market. It’s not just a matter of new or used, it’s a matter of new or something used that sucks.
The tax credit only applies to vehicles under $60k if it’s a sedan and $80k if it’s a SUV/CUV. For a lease the leasing company gets the credit. For a purchase the batteries materials must be sources from an approved country. That’s why many EVs except for GMs don’t get the full tax credit on a purchase.
Leases have different rules, but I do not remember whether they also exclude the dollar limits. But they do exclude the country limitations.
How much is a 1 year old phone worth relative to a new one? With tech, because tomorrow’s may be better than today’s for less money, values tank. I recall JIT was almost required by PC makers because disk drive tech changed so rapidly that the drives you held from a month ago in inventory for PC’s being manufactured lost value. Just holding inventory loses money way beyond interest costs with fast moving tech. Imagine, what is your EV going to be worth in the market if the solid state battery tech happens. Hint, about zero. Now I’m not saying you can’t still drive your old battery EV, it is just no one else is going to pay you for it when they can get the new much improved one for less.
They freaking better make new battery tech compatible to upgrade old ev’s…. I can see plenty of reasons to have that lobbied away to sell new vehicles… the waste makes me angry… you wouldn’t like me when I’m angry..
Then you better prepare yourself to get angry. Not going to be compatible. Different charge profile, different form factors, different weights, different temperature requirements, … Old ones are going to the crusher where hopefully they have at least got the ability to recycle the lithium, cobalt, etc. the only upside I can see is insurance rates should go down. “Total’ed value” will drop so instead of getting a 10K fix repaired, it will get total’ed and you’ll get a check for 7500, the value of the vehicle.
I think American car culture ( the only one I think fondly of other than the Italian modernist movement and little Cuba ) would really rejoice in a supplemental market of keeping older ev’s functional. So be it if some electrical engineering is needed to diagnose the mods. I see individuals rising to the challenge as to not be wasteful. Even if it started as a boondoggle it doesn’t need to end as one. New battery tech and its integration will only be constrained by policy, which in one of the only bastions of democracy we do have a say… as long as there is transparency, hope, and vision.
Due to the expected surge and EV adoption and lithium battery adoption in general there’s currently an overcapacity of lithium recycling. 95% of the minerals that go into a battery can be successfully recovered with very little environmental or economic cost. The current problem is these recyclers can’t find enough batteries because they last much longer than people expected.
Fat chance . Thats the real problem . With small fleets of a particular model on the road . No economy of scale for replacement parts . Even Tesla models that sell in large numbers for ev, there are 10 different battery models for model 3 alone . Tesla keeps updating under hood .
It will be interesting to see where this ends since it enforces a “doom loop” for EVs. If people who paid a hefty premium price for a new EV get taken to the cleaners when they want their next new shiny thing, they will be more compelled to go back to ICE to avoid that financial loss again.
If you take into account that ev is more likely to go to crusher at a younger age then Ice . Does the c02 savings bragged about actually pan out ?
If you look at commercial airliner marketplace . Many airliners go to the airplane graveyard early because the engines are more valuable than the rest of the plane . Planes need expensive maintainers checks .
Many ev whose bodies are viable will be more valuable as scrap then as a functioning vehicle
Lots of valid reasons why EV’s are boat anchors on the used market. But none more valid than the lifespan and cost of battery replacements. Whether anecdotal or fact, the word is that 5-7 years and maybe 125k miles True or not, that’s the perception and when your local Ford or Chevy dealer reinforces that by offering you pennies for your LIghtning or Silverado EV in a year or two, it validates the argument. Compare that with a gas engine car that with just a smidgen of maintenance will likely deliver close to 200k of relatively low cost ownership and the choice becomes obvious. Add in the range, charging time and locations, cost of home chargers and occasion EV inferno, sometimes in the owners garage and there’s no compelling statistically based reason to pay a premium for an EV that will be a boat anchor 2-3 years down the road.
Sadly, the US car makers are 8 to 10 years behind Tesla and EV technology. The Tesla warranty for batteries is generally that it has certained 70% of its capacity after 8 years or $120,000 mi. They have very few warranty claims. That cannot be said for the American car companies and many of the foreign car companies who are late to the game
All the EV sycophants in denial. It’s also happening in Europe.
Ev cars are like beanie babies here today gone tomorrow. Don’t get stuck holding one!
EV depreciation is simply SHOCKING! 🤣
Nobody wants to a used battery and 75% of EVs look terrible . So it makes sense
Well you will need to get used to EVs as the government has mandated no gas cars will be sold NEW in the USA in 2030
And any gasoline car owners will be beaten, doused with gasoline and set on fire. 😳🔥
The plane is to raise the gas tax , penalties ever increasing emissions compliance and pressure to put gas stations out of business .
Read the progressive activist websites road to ev roadmap .
They plan to do the same for beef .
In Denmark they are charging farmers $1000 a cow tax to cover greenhouse emissions .
Under Biden in the USA , they are restricting access to federal lands causing ranchers to reduce their herds
Sadly, the US car makers are 8 to 10 years behind Tesla and EV technology. The Tesla warranty for batteries is generally that it has certained 70% of its capacity after 8 years or $120,000 mi. They have very few warranty claims. That cannot be said for the American car companies and many of the foreign car companies who are late to the game
If people refuse to buy them the companies go bankrupt and with it the economy. As the economy sours so do the voters who lost their jobs and the party responsible for the tanking economy all for a costly green agenda nobody but themselves asked for, won’t be able to rely on the electoral college anymore to save their chances to play as dictators. Does the party pushing EVs understand that reality yet or is grandpa Joe still in senile land like he was during the debate two nights ago gone from reality?
Democrats are on their way out . Supreme Court just ruled that if congress wants to ban ice cars , the. They will need to pass a law . The epa can no longer decided on their own based on vague environmental law .
Ice will be around for much longer as ev is not ready for most use cases
What a tremendous opportunity for those who would like a pre owned EV. I have over 11,000 miles on my EV so it is certainly used, and it would be a great pre owned purchase. Has Cadillac’s 4 year and 50,000 mile warranty. And 100,000 mile warranty on the battery. For those who want to enjoy the very different and fun driving experience of an EV , consider doing it now while prices may be down. Easiest way to purchase a pre owned EV may be on Tesla’s website —- hassle free and I would trust that Tesla has vetted these cars. Mustang Mach Es could be a real value and once you drive the GT you’ll want one. My brother in law got a brand new Nissan LEAF for $144 per month 2 year lease.
The Ford Lightning would be a great commuter truck —- somewhat lower range, but so what if for the most part one is just commuting and running around town. For the occasional road trip PlugShare will map the route and make charging on the road easy.
Must be because EV popularity is “skyrocketing.” Prices are nosediving because EV sales are so hot the heat from it must be changing the basic laws of supply and demand…
Although your post mentions supply, it totally ignores it.
I would not buy a used EV The cost is coming down not just on Tesla`s but all EV new Models !
I have owned a Tesla Model Y LR for 2 yrs now no cost to maintain , only 2 @ rotation of tires.. have charger in my garage,, Its a great fast fun easy to drive vehicle!
Not for everyone.. I use it for local driving to golf course & beach.. Need a 2nd ICE Vehicle for longer trips.. Until they add more charge stations+ Longer range battery tech and chargers at ever gas station it still is not the answer for every driver
Just imagine 50% of the cars on the road being ev . It’s 4th of July weekend and people are driving to the jersey shore . You would need charge stations along the highway and I these beach towns that would be used for 3 months a year max . Hundreds of charge poles at a rest stop . And where is all the power to charge 100 cars at once coming from .
More then just we need charge stations . Over simplification to persuade people .
You’re looking at this through a very narrow point of view. You assume all the people are arriving at the same time, same charge state and can’t charge at their destination.
Do most people drive more than 300 mi to get to the Jersey shore? I don’t think it’s worth driving that far
The alternative to more charge stations is faster charging. We’d need a lot more gas pumps if it took over 30 minutes to fill up a tank of gas. And faster charging also solves the problem that EVs simply are a poor choice for people who can’t charge at home. Kill two birds . . ..
Just stating what the situation currently looks like during summer weekend at the jersey shore and the commute home .
Rest stops serve hundreds of cars per hour on Jersey turnpike . 90 degree heat , air conditioning on in cars . Bumper to bumper traffic .
People are nowhere near there home chargers
What I describe is a very common situation .
I’ve done roadtrips with friend who drives a model y . Early on it was great as long as you were going to places that had super chargers along the way . The past two trips were stressful . We had to wait almost two hours for a charge stall to open up on one trip . This added an extra 2 hours to a 6 plus hour drive . Not fun . The second trip we had to wait 40 min for a stall to open up .
I was ready to buy a model three as our one family car . No way after that . We routinely go skiing and visit family in Vermont . A trip that is 600 miles it can take between 6 and 9 hours with 1-2 gas and goes . It can take 2 hours just to clear nyc metro area on busy weekends . With no reliable available charging it’s a no go.
In cold range is less . In heat with ac going range is less .
AC doesn’t hurt the range of EVs anywhere near what heating does. Bumper to bumper traffic is what EVs excel in. Highspeeds kills range. EVs can sit in traffic for hours and lose very little range.
I’m sure little Snookie would find a way to deal with the Situation on her way to the Jersey Shore…
Once again, if you’re going on a long road trip you’re better off running a vehicle with unlimited mileage. Just use the EV for the other 99% of the time that you drive. It will be far far less expensive over the long term
There is going to be a major problem as we shift to EVs, which we need to do because of climate change. I understand that a large portion of the population does not understand the science or probably more important doesn’t want to understand the science, but it is real and it is getting worse at an increasingly rapid pace. Once we switch to EVs, there will be no need for all the extra parts needed for an ICE drivetrain. That will be a lot of jobs. Also, overtime auto repair shops will decline. ICE engines are very complex and require a lot of maintenance over time. As they are being phased out and all most people will need to have done is replace a windshield wipers and tires. That’s going to cut down on a lot of repair places.
We will need gas stations for a long long time. The latest information I read indicated they expect peak gasoline consumption around 2028 after which point it will start declining as EV use grows.