Why are new electric vehicle sales declining?

New electric vehicle sales declined by 28% year-over-year in the first quarter, partly due to the removal of a $7,500 consumer tax credit.

What is driving the increase in used EV sales?

The increase in used EV sales is driven by rising gas prices and a large supply of pre-owned electric vehicles from expiring leases.

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Used EVs Surge as New Car Sales Tumble

Q: How do used EV prices compare to gasoline cars?

The surge in used EV supply has pushed prices down, bringing them close to parity with internal combustion engine vehicles, with average prices around $34,821 for used EVs and $33,487 for gas equivalents.

7 Apr

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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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.