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DETROIT – Automotive research firm iSeeCars published a study this week explaining the dynamics of the used EV market in the U.S. The study said that prices of cars like the Tesla Model 3, Nissan Leaf, Hyundai Kona Electric and the Kia Niro EV have dropped six times faster than gas cars over the past 12 months.
For starters, used EVs have lost 24.7% of their value since September 2023, compared to 6% for used hybrids and 4.4% for used gas cars. That’s according to a dataset that included 1.6 million one to five-year-old used cars sold between August 2023 and 2024.
- Prices of one to five-year-old used EVs plummeted 25% over the past year.
- The average price of a used EV in the U.S. is now $27,000, lower than the average price of used gas cars and hybrids.
- Tesla Model 3, Kia Niro EV and Hyundai Kona Electric are among those leading this plunge.
- The price drop is accelerating their sales, with fewer days spent on lots.
“The substantial drop in EV prices over the past year appears to have brought them in line with demand, with used EV days-on-market much lower today, reflecting a faster selling rate compared to a year ago,” Karl Brauer, iSeeCars Executive Analyst said. In short, affordability is driving sales.
Brauer added that the price drops we’re seeing now aren’t quite as drastic as before. Used EV prices were dropping by 30-40% at the end of 2023 and the start of 2024. The 25% indicates things are leveling off a bit. The average cost of a used EV is now $27,000. It’s expected to stabilize at around $25,000—a price tag many automakers are attempting to hit with their next-generation models.
This has led to used EVs being on the market for an average of 55.3 days in September 2023 to just 38.6 days now. That means used gas cars, hybrids and EVs now take the same amount of time to sell.
The study also added that demand for hybrids remains robust, with fewer fluctuations and price drops like EVs. Used hybrid prices are down just 6% over the past year, whereas used EV prices are down a whopping 24.7% as mentioned.
“People waiting for a good deal on a used electric car have been rewarded for their patience,” Brauer said. “If you bought a used EV a year ago you probably bought too soon, but at today’s prices a used EV is starting to make sense—assuming your lifestyle and vehicle needs line up with the benefits and limitations of an EV.”
So which models are headlining this trend? The average price of a Tesla Model 3 is now about $26,000, over $8,500 less than a year before. The average price of a Kia Niro EV is roughly $22,000, about $6,000 less than last year. The humble Nissan Leaf now costs $16,000, about $4,000 less than 12 months ago. Other notable low-cost used options include the Chevy Bolt EV and the Jaguar I-Pace.
That’s great for the new wave of mass adopters, so long as they’re willing to accept used models.
The Model 3 especially makes sense. Even the versions that arrived before the Highland remain relevant today. It benefits from the vast Supercharger network, has trims that can cover over 300 miles on a single charge and it keeps improving over time with software updates.
If Tesla and CEO Elon Musk don’t rock your boat with their cultural shenanigans and pivot away from cars, the Model 3 remains a great bargain. If they do, you have plenty of other great options to consider. Either way, if you’re in the market for a used EV, there’s never been a better time.
To read more, click on Inside EVs
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