July 25, 2024
Electric & Hybrid Cars

Study finds significant price reductions in used electric vehicles

Preowned vehicle pricing has been fluctuating significantly in recent years, with electric vehicles leading the trend of decreasing prices. iSeeCars’ latest study revealed that several electric models are at the forefront of this favorable trend.

iSeeCars ranked the vehicles with the largest year-over-year price decreases as of May 2024, with the Jaguar I-Pace experiencing the most significant drop at 30.1 percent. Other top 10 cars with substantial price reductions on the used market were also identified.

Out of the top 10 vehicles with the largest price drops between May 2023 and 2024, seven were electric, while those with the most significant price increases were gas-powered. The Porsche 718 Cayman and Genesis G90 saw the biggest gains at 30.4% and 17.3% respectively, followed closely by the Porsche 718 Boxster and BMW 5 Series hybrid.

One factor contributing to the decline in used EV prices is buyer skepticism. iSeeCars’ executive analyst Karl Brauer noted, “With the influx of EVs in the new and used car markets, it indicates an oversupply situation that is likely to persist as more EVs return from leases. Unless there is a significant increase in demand for EVs, prices for these models are expected to continue dropping.”

During the period covered by the iSeeCars study, used electric vehicles experienced more substantial price drops compared to gas-powered models. The study, which analyzed 2.2 million one- to five-year-old used vehicles, found that used EV prices decreased by 29.5% year-over-year, while gas vehicle prices only dropped by 6.1%. This marked the first time that average used EV prices fell below those of gas models, indicating a favorable time to consider purchasing a preowned electric vehicle.

FAQ

Q: Are there any specific electric vehicle models that saw the largest price drops?

A: Yes, according to the iSeeCars study, the Jaguar I-Pace had the most significant price drop at 30.1% year-over-year as of May 2024.

Q: Why are used EV prices falling more than gas vehicle prices?

A: The oversupply of EVs in the market, combined with buyer skepticism and a lack of substantial demand, is contributing to the decline in used EV prices.

Conclusion

Electric vehicles are leading the trend of declining prices in the used vehicle market. With significant price drops observed in several electric models, now could be a favorable time to consider purchasing a preowned EV. Buyer skepticism and an oversupply of EVs are key factors driving the decrease in used EV prices compared to gas models. As more EVs enter the market, the trend of falling prices is expected to continue unless there is a significant increase in demand.

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