Used EV Prices Soar, Gas Cars Prices Level Off As More People Embrace the Future

Used EV prices soar, gas cars prices level off as more people embrace the future 6 photos
Photo: Ford
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Electric vehicles are not very popular in the U.S., with only around a 5% adoption rate. This has led to an underdeveloped used EV market and a rapid depreciation. Nevertheless, things are changing, and a new study by iSeeCars shows that people flock to buy electric cars, shunning ICE vehicles.
Used vehicles are an essential part of a functional car market. Still, in the case of electric vehicles, things have moved slowly. The first EVs on the market, like the Nissan Leaf, were underbaked and problematic. The Leaf had problems with the failing batteries, fueling the belief that electric vehicles generally are not suited for long ownership. Things have been changing and changing fast in the past year.

According to a new report by iSeeCars, Americans have started to see electric vehicles for what they really are: marvelous pieces of technology that can save money in the long run. The skyrocketing fuel price, ever-improving charging infrastructure, and mature battery technology have changed the perception. This has led to a steep price increase for used electric vehicles while also making the used gas car prices level off.

Sure, the global microchip shortage is still a thing, so don’t expect combustion-engined vehicles to get more affordable. Nevertheless, the study shows that the ICE car prices leveled off in the year’s second half. Over the same period, prices for electric cars have continued to increase significantly. In July, the increase topped 54% from the same month last year, while gas-powered cars were up just 10.1%.

“Until recently, mainstream electric vehicles typically depreciated rapidly due to improvements in battery technology and a lack of demand in the secondary market,” said iSeeCars Executive Analyst Karl Brauer. “However, soaring gas prices, improvements in public charging infrastructure, and a lack of inventory for new EVs have led to soaring demand for used electric vehicles.”

The Nissan Leaf registered the most significant price increase (+45%), which is a surprise. The Leaf used to be the highest depreciating car on the market. The price increase might be due to the improved new model coming off lease and entering the used car market.

Another flagging EV with a steep price increase (+29.3%) is the Chevy Bolt, which remains the most affordable used electric vehicle on the market. With an average used car price of $28,291, the Bolt has us scratching our heads. GM sells a new Bolt as low as $26,595, and even at this price, it struggles to find enough customers. Why anyone would pay more for a used example is beyond us.

Three Tesla models complete the Top 5, although the results are somehow skewed. Tesla’s EVs were already selling at a premium on the used car market a year ago, so the increase (which is still sizeable at 16%-27.5%) is not that obvious. The surprise is the Porsche Taycan, which registered a 3.5% price decrease, which is embarrassing. Nevertheless, the Taycan has an average selling price of $138,033, indicating that people have limits when paying for used EVs.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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