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Used EVs Surge as New Car Sales Tumble
7 Apr
Summary
- New EV sales dropped 28% year-over-year in Q1.
- Used EV sales increased 12% year-over-year in Q1.
- Expiring leases are significantly boosting used EV supply.
New electric vehicle sales experienced a significant downturn in the first quarter, plummeting by 28% year-over-year. This decline follows the removal of a $7,500 consumer tax credit.
Conversely, the market for used EVs has surged, with sales increasing by 12% year-over-year in the first quarter. Short-term growth was even more pronounced, showing a 17% rise between the fourth and first quarters.
Contributing to this used EV boom are the rising costs of gasoline, with average prices exceeding $4 per gallon. Additionally, a substantial number of electric vehicles from expiring leases are now entering the pre-owned market, doubling their share of off-lease vehicles by the end of the year.
This increased supply of used EVs has naturally led to lower prices, bringing them closer to parity with internal combustion engine vehicles. Currently, the average price for a used EV is $34,821, compared to $33,487 for a comparable gas-powered car.
