July 21, 2024
Electric & Hybrid Cars

The prices of used electric vehicles (EVs) are dropping more rapidly than those of gas models.

Despite prices decreasing slightly, brand-new electric vehicles are still significantly more expensive than comparable gasoline models. However, on the secondary market, a recent study by iSeeCars has revealed that used electric vehicle prices have dropped below those of used gasoline models for the first time. The study also found that the prices of used electric vehicles are decreasing at a much faster rate than those of gasoline vehicles.

Analysing over 2.2 million used car prices in February, iSeeCars discovered that electric vehicles are experiencing a depreciation rate of nearly 30 percent year-over-year, which is almost five times higher than that of gasoline vehicles.

Karl Brauer, the executive analyst at iSeeCars, stated, “There is no denying the significant decrease in the value of used electric vehicles over the past year. Since June of last year, we have witnessed a decline in EV prices ranging between 30 and 40 percent, whereas the average price of gasoline cars has only dropped by 3 to 7 percent during the same period.”

Although used electric vehicle prices saw a slight increase towards the end of 2023, they have since plummeted earlier this year, continuing on a downward trend. On the other hand, used gasoline car prices experienced a small resurgence during this period. Brauer noted, “It is evident that used car buyers are no longer willing to pay a premium for electric vehicles and, in fact, view electric powertrains as a disadvantage, diminishing their desirability and value compared to traditional models.”

If you are in the market for a used vehicle, now might be an opportune time to consider purchasing an electric vehicle. One of the challenges dealers are facing in selling used electric vehicles is buyer apprehension concerning the national charging infrastructure and battery lifespan. This presents a favorable scenario for informed buyers to find great deals on used electric models with relatively low mileage at a reasonable cost.

FAQ

Q: Are used electric vehicles more affordable than used gasoline vehicles?
A: According to a recent study by iSeeCars, used electric vehicle prices have fallen below those of used gasoline models for the first time, and they are depreciating much faster than gasoline vehicles.

Q: What factors contribute to the decrease in used electric vehicle prices?
A: Factors such as buyer skepticism towards the national charging network and concerns about battery longevity have played a role in the depreciation of used electric vehicle prices.

Conclusion

The current trend in the used car market indicates that electric vehicles are becoming more affordable compared to gasoline models. With prices of used electric vehicles declining rapidly, informed buyers can take advantage of this situation to find good deals on electric models with relatively low mileage. Despite initial concerns about charging infrastructure and battery life, now could be a favorable time to consider purchasing a used electric vehicle.

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