Used Electric Vehicles Now Priced Below Gas-Powered Cars
Published on 2024-06-16
EV prices fell below gas prices, making EVs less desirable, and used EV sales are increasing, making them more accessible.
Used electric vehicles (EVs) now cost less than their gasoline-powered counterparts, a trend that has accelerated since February. By May, used EVs were 8% cheaper than used gas cars, with a price difference of $2,657. This shift reflects a declining "premium" associated with EVs.
Over the past year, used gas car prices have fallen 3-7%, while used EV prices have significantly decreased by 30-39%. Consumers view gasoline power as less desirable, making EVs less valuable.
The gap between used luxury brands and EVs has also widened, with Tesla models costing less than comparable BMWs. In May 2023, a Tesla Model 3 was priced $2,635 higher than a BMW 3 Series, but by May 2024, it cost over $4,800 less.
Increased sales of used EVs, spurred by a larger market, contribute to lower prices. In 2022, over 176,000 used EVs were sold, and in May, that number exceeded 45,000. As EVs enter the used market at lower costs, a wider range of potential buyers can consider EVs.
Over the past year, used gas car prices have fallen 3-7%, while used EV prices have significantly decreased by 30-39%. Consumers view gasoline power as less desirable, making EVs less valuable.
The gap between used luxury brands and EVs has also widened, with Tesla models costing less than comparable BMWs. In May 2023, a Tesla Model 3 was priced $2,635 higher than a BMW 3 Series, but by May 2024, it cost over $4,800 less.
Increased sales of used EVs, spurred by a larger market, contribute to lower prices. In 2022, over 176,000 used EVs were sold, and in May, that number exceeded 45,000. As EVs enter the used market at lower costs, a wider range of potential buyers can consider EVs.