Used EV Prices Rise Amid Supply Increase

The used electric vehicle (EV) market is experiencing a paradoxical trend where increased supply is coinciding with rising prices. Since February, used EVs have appreciated by just over 5 percent, a shift attributed by analysts to the ongoing geopolitical situation in the Middle East. Despite this price appreciation, the demand for used EVs remains robust. By May, sales of used EVs had seen a significant increase of 25 percent year-over-year. However, a slowdown in June has moderated this growth, bringing the overall year-over-year sales increase to just over 20 percent, according to data from Cox Automotive. This analysis from Cox Automotive also highlights a key difference in inventory turnover between new and used EVs. In June, the supply of used EVs on dealer lots averaged just 38 days, a stark contrast to new EVs, which had an average supply of 81 days. This indicates a faster sales cycle for pre-owned electric vehicles. Further insights from analysts at Recurrent suggest that a substantial portion of the demand for used EVs is concentrated at the lower end of the price spectrum. In previous installments of this used EV buyer's guide, the focus was on vehicles priced up to $25,000, some of which may now be eligible for a $1,750 rebate in California. The current installment shifts focus to used EVs available within the $25,000 to $30,000 price bracket. A search on Autotrader reveals that over 9,000 used EVs are currently listed for sale within this specific price range. The available inventory in this segment can be broadly categorized into three tiers: a large selection of popular models, a moderate availability of a few hundred vehicles nationwide, and a limited number of rare or niche models, where only a handful might be found across the country. This segmentation helps potential buyers navigate the market based on their preferences and the availability of specific models. The data underscores a dynamic market where economic factors and consumer preferences are shaping the landscape of used EV accessibility and pricing.