In a recent car buying report by Recurrent, it has been observed that the prices of used all-electric vehicles in the United States have experienced a notable decline, making electric cars more attainable for consumers. Since July 2022, the prices of used EVs have gone down by approximately 28 percent, with Tesla models seeing a decrease of more than 30 percent year-over-year. This drop can be attributed to Tesla’s decision to reduce new vehicle prices, among other factors.
One encouraging aspect of Recurrent’s data is the revelation that nearly 40 percent of used EVs in the US are now available for less than $30,000. This development comes as positive news for individuals aiming to take advantage of the potential $4,000 tax credit offered by the IRS for eligible zero-emissions vehicles, specifically those costing $25,000 or less and possessing a battery capacity of at least 7 kilowatt-hours.
See also: Tesla Leads Significant Decline in Used Electric Car Value in the US, Impacting Market as a Whole
The decrease in used EV prices can be attributed to various factors. Firstly, there have been price cuts for new electric cars, coupled with federal incentives aimed at promoting battery-powered vehicles. Additionally, softened demand for used cars has played a role in driving prices down.
Recurrent’s report highlights that Tesla models, in particular, tend to retain their value better than other EVs over a three-year period. For instance, the 2022 Model 3 experienced an approximate 30 percent depreciation, while the Model S, Model X, and Model Y saw reductions of 27 percent, 24 percent, and 23.5 percent, respectively.
Interestingly, amidst the general trend of declining used EV prices, the Ford F-150 Lightning appreciated in value on the used car market when compared to the average MSRP in 2022.
Lead researcher at Recurrent, Liz Najman, emphasizes that the goal of achieving price parity between gas-powered and electric cars is becoming more achievable. Lower purchase prices for both new and used EVs make them more appealing and accessible to a broader range of consumers. Najman also points out that luxury EV sales don’t necessarily reflect the overall interest in electric vehicles. Tesla has recently experienced a successful quarter, while Rivian has exceeded its delivery targets.
See also: Used EV Sales Soar by 32% in Q1 as New Electric Vehicle Market Continues Record Climb
Recurrent’s 2023 Price Index includes various popular EV models from different years, such as the Chevrolet Bolt, Nissan Leaf, Toyota Prius Prime, Tesla Model 3, Chevrolet Volt, Tesla Model Y, Hyundai Kona EV, and Ford Mustang Mach-E.
Regarding popularity, Tesla continues to dominate over 30 percent of the used EV inventory nationwide. In contrast, Ford and General Motors have a strong presence in the EV market in the Midwest.
