iSeeCars, an automotive search engine service, has determined that used electric vehicle prices increased five folds at 54.3% year-over-year compared to its gas-powered counterparts at just 10.1% in July, according to Teslarati.
As Karl Brauer, iSeeCars Executive Analyst, explained, the market’s escalating prices for secondhand electric vehicles demonstrate the strong demand for these eco-friendly automobiles.
“Until recently, mainstream electric vehicles typically depreciated rapidly due to improvements in battery technology and a lack of demand in the secondary market. 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,” Brauer said.
Monthly 2022 vs. 2021 Year-Over-Year Price Comparisons: Conventional Fuel Vehicles Vs. EVs
|Y-o-Y % Change, Conventional Fuel Vehicles||Y-o-Y % Change, EVs|
Over 13.8 million used cars around 1-5 years old that were sold between January and July of 2021 and 2022 were included in the firm’s analysis. Used conventional fuel vehicles had a 36.3% price increase in January, comparable to the 54.1% recorded by used electric vehicles. Over the last two months, this gap has considerably increased.
Interestingly, the price gap between used EVs and used ICE vehicles has further increased this year. For instance, vehicles like the Nissan LEAF, whose price increased by 45.0% year-over-year in July 2022. The Chevrolet Bolt EV had a price increase of 29.3% in the same month, which was also pretty significant.
“The price increase for the Nissan LEAF, which was once the highest depreciating car on the market, is likely due to heightened gas prices as well as the heightened desirability for the redesigned 2018 model that offers increased range and is now coming off lease to enter the used car market,” Brauer said.
Electric Vehicle Year-Over-Year Price Increase By Model, July 2022 vs. 2021
|Rank||Electric Vehicle||% Y-O-Y Price Increase||$ Y-O-Y Price Increase||Average Used Car Price|
|2||Chevrolet Bolt EV||29.3%||$6,417||$28,291|
|3||Tesla Model S||27.5%||$17,906||$83,078|
|4||Tesla Model X||19.7%||$14,863||$90,484|
|5||Tesla Model 3||16.2%||$7,781||$55,766|
|6||Kia Niro EV||15.7%||$5,124||$37,732|
|7||Tesla Model Y||13.6%||$8,381||$70,065|
Evidently, the used EV market for Tesla had a more moderate price increase in July. Used Model Ys only had a price increase of 13.6% YoY, used Model 3 sedans with a 16.2% price increase, and used Model X vehicles 19.7% price increase. Only used Model S sedans had a significant price increase of 27.5%, which may be related to the proliferation of recently refurbished models like the Model S Plaid.
“Demand for used versions of the Model 3, Model X, and Model Y was high last year before the rise of gas prices because they were relatively scarce in the used car marketplace, which helps explain why they have not had as steep of a yearly price increase,” Brauer added.
On the other hand, the only used electric vehicle to experience a price drop was the Porsche Taycan. Brauer said that although used Taycan prices only dropped 3.5% year-over-year, this may indicate that used EV buyers have a maximum price they are willing to spend.
“The Porsche Taycan is the only electric vehicle that has gone down in price compared to last year, perhaps suggesting an upper limit to what consumers are generally willing to pay for used EVs,” he said.