The used electric vehicle market is finally picking up momentum as new EV sales in the US approach 7% of the total auto market, according to new data from Cox Automotive. In the first quarter of this year, used EV sales increased by 32%, with even more growth projected in the near future.
Previously, used EV sales had been sluggish, but the availability of more used models due to the surge in new electric vehicle sales has led to an increase in the used market. Cox Automotive predicts that new EV sales will exceed 225,000 units in Q1, more than doubling from 3.1% in 2021.
In October, Electrek reported on the stabilization of used EV prices after a surge in the average price last summer. The most recent data shows that the average price of a used EV is now around $43,400, down 4% from last year and significantly lower than the average cost of a new model at around $59,000.
This drop in price is attributed to Tesla’s recent price cuts, which have influenced the market, causing other automakers like Ford to follow suit. As more EV makers ramp up production, there will be an influx of newer, more technologically advanced models, leading to even more used EVs becoming available.
Retail used EV sales increased by 32% year-over-year in Q1, reaching 42,756 units. According to Jonathon Smoke, chief economist at Cox Automotive, the trend is only expected to accelerate from here, with used EV sales doubling in the first quarter compared to Q1 2021 and set to grow even further.
The largest US wholesale vehicle marketplace, Manheim, reported a 40% increase in used EV transaction volume in the first quarter of this year compared to last year. With analysts forecasting that new EV sales in the US will reach one million for the first time this year, the trend is only expected to intensify.
