Electric vehicle sales are growing year-over-year, but monthly and quarterly trends often ebb and flow, causing uncertainty about what’s actually happening. A new report from car buying and research firm iSeeCars emphasizes these fluctuating sales patterns, especially with regard to used EVs.
iSeeCars claims to have analyzed over 2.3 million new and 1- to 5-year-old used cars to understand the market, and it found a “substantial weakness” in demand for EVs compared to hybrids and gas vehicles. The most substantial of these findings: used EV prices were down 33.7 percent in October 2023, compared to October 2022. Last October, the average used EV price was $52,821. This October, it was $34,994.
To put that in context, overall used car prices were down by 5.1 percent last month, while average used hybrid car prices were down by 9.6 percent, substantially lower than the 33.7 percent price drop used EVs are facing. And EVs were on the market nearly 1.5 times longer compared to last year. On average, a used EV took 52.4 days to sell in October 2023, while the average used car took 49.2 days. This marks a significant change from a year ago when used EVs were on the market for an average of 37.5 days, indicating a considerable decline in demand.
A lot has transpired between then and now. Manufacturers, starting with Tesla, embarked on a price-cutting spree. Even then, EV prices are still higher than
comparable gas cars. This disparity, coupled with
lingering concerns over the reliability of charging infrastructure, seems to have left customers somewhat cautious. “Everything from economic concerns to growing competition among electric vehicles is contributing to their [used EVs] downward trend,” said Karl Brauer, iSeeCars executive analyst.
But there’s probably no need for the alarm bells to ring. Used cars with the biggest price drops are old models, launched years ago. The top five used cars with the largest price drops are the Nissan Leaf, Tesla Model 3, Chevrolet Bolt EV, Tesla Model X, and Model S. “It’s common for old models to drop in price when the market contracts,” said Brauer. “Most of the models on this list were introduced several years ago and need a redesign to remain competitive.”
Not only are redesigns underway, but a handful of new and apparently budget-friendly EVs are also in the pipeline. The facelifted Model 3 Highland has already launched in China and Europe, and its U.S. launch is expected soon. The Ultium-platform-based Chevrolet Bolt EV successor is also on its way—some reports predict production to begin in 2025. Then you also have models like the Volvo EX30, and Chevrolet Equinox EV among several others, which could potentially be promising mass-market cars.
Other key details from the study? Used EVs taking the longest to sell are non-Tesla models, including the Kia EV6, Ford F-150 Lightning, Polestar 2, and Volkswagen ID.4 among others. That said, the Rivian R1T was the fastest-selling used EV in October 2023—it remained on the market for 35.5 days. The Chevrolet Bolt EV and EUV, and the Tesla Model 3 and Model Y were also among the fastest-selling used EVs, as highlighted in
another report last month.
