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Used EVs Are Now Cheaper Than Used Gas Cars

The average transaction price for a used car remains well above pre-pandemic prices, but not all vehicles are holding their value equally. There’s a widening gap between used gas-powered vehicles and used electric vehicles that shows no signs of slowing down, according to a new iSeeCars study.

In May, the difference in the average price between used EVs and gas cars widened to its biggest gap yet, 8.5 percent—a $2,657 difference. The average used EV was priced at $28,767 last month, while the average gas car was $31,424.

Month Used EV Average Price Used Gas Car Average Price Price Difference % Difference
May 2024 $28,767 $31,424 -$2,657 -8.5%
April 2024 $29,066 $31,391 -$2,325 -7.4%
March 2024 $29,925 $31,015 -$1,090 -3.5%
February 2024 $30,904 $31,169 -$265 -0.9%
January 2024 $33,275 $31,689 $1,586 5.0%
December 2023 $33,572 $29,789 $3,783 12.7%
November 2023 $34,275 $30,116 $4,159 13.8%
October 2023 $34,994 $30,906 $4,088 13.2%
September 2023 $34,926 $31,147 $3,779 12.1%
August 2023 $36,161 $31,466 $4,715 15.0%
July 2023 $38,797 $32,251 $6,546 20.3%
June 2023 $40,916 $32,715 $8,201 25.1%

That’s a drastic fall from a year ago when, in June 2023, used EV values were 25 percent higher, or $8,000 more on average, than their petrol-powered counterparts. The average EV was $40,783, while gas cars were $33,469. EV prices steadily fell through the middle of last year, according to iSeeCars’s data, stabilizing in the final few months of 2023 before accelerating again in February.

The average price of a used gas car hasn’t suffered the same fate. They have held steady at around $31,000 for about a year, shifting no more than seven percent compared to last year, and actually rose about $375 from February to May 2024.

This trend is evident in the price difference between the Tesla Model 3 and the BMW 3 Series. Last June, a used Model 3 cost $2,635 more than a used 3 Series. Eleven months later, the Tesla’s price had fallen to $4,806 below that of the BMW. The study also noted that EVs are the top seven used cars with the most significant price drops over the last year.

Model May 2024 Average Used Price YoY Price Difference YoY % Price Difference
Jaguar I-Pace $32,651 -$14,053 -30.1%
Chevrolet Bolt EV $18,081 -$7,041 -28.0%
Hyundai Kona Electric $21,602 -$7,780 -26.5%
Kia Niro EV $22,893 -$7,561 -24.8%
Nissan Leaf $17,593 -$5,546 -24.0%
Tesla Model 3 $28,439 -$8,932 -23.9%
Tesla Model X $59,296 -$13,690 -18.8%
Jaguar E-Pace $27,811 -$5,658 -16.9%
Tesla Model S $55,340 -$10,399 -15.8%
Maserati Levante $49,096 -$8,991 -15.5%

There’s a lot of doom and gloom around electric vehicles right now. Sales are slowing, prices are falling, and competition continues to heat up worldwide as automakers attempt to turn the technology into profitable products people want.

Poor resale values could hurt EV adoption as consumers continue to see if these cars fit their lifestyles. A vehicle is often a person’s second-biggest purchase in life, and it is quickly becoming the biggest. Taking a gamble on an EV that might not hold its value is a risk most don’t want to take.

iSeeCars’s study analyzed more than 2.2 million one- to five-year-old used cars sold in May 2023 and May 2024.

Read the full article here

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