Prices of used electric vehicles have started to stabilize in the United States in the first half of the year after a period of increases, according to research firm Recurrent Auto’s recent report.
EV prices are nearing a plateau
Recurrent Auto’s Used Electric Car Prices & Market Report – Q3 2024 suggests electric vehicle prices are leveling off in H1 2024, particularly in the $20,000 to $25,000 price range owing to support from the $4,000 government-subsidized used EV tax credit.
These new insights suggest that now may be an ideal time for automotive dealers to return to or start offering used electric vehicles.
“That’s really important for both sides of the market. For dealerships, it’s ok to jump back in – you won’t be trying to catch a falling knife anymore. For EV buyers, the fear of crushing depreciation on new EVs won’t be so crushing moving forward.”
Recurrent Auto CEO Scott Case
However, Recurrent Auto does not expect prices of used EVs to decline below the $20,000 to $25,000 “sweet spot” unless they are much older model years with a low range.
Notably, models outlined in Recurrent Auto’s pricing index include the following:
- 2018 Chevrolet Volt
- 2019 Toyota Prius Prime
- 2019 Tesla Model 3
- 2020 Bolt EV
- 2020 Tesla Model Y
- 2021 Chrysler Pacifica Hybrid
- 2021 VW ID4
- 2022 Nissan LEAF
- 2022 Mustang Mach-E
Affordable used EV inventory surges
With used electric vehicle prices stabilizing, the market share of affordable units under $30,000 has substantially surged. This segment now represents almost 60% of all used EVs available, a more than threefold increase from August 2022.
In addition, the inventory of used EVs under $25,000, potentially eligible for the new EV tax credit, has also grown substantially. They reportedly accounted for over 30% of the market. This trend suggests that finding a good deal on used EVs is becoming easier, especially for budget-minded consumers.
Forecasts
Recurrent Auto projects that the used electric vehicle prices will become even “more predictable” in Q3 2024.
Meanwhile, it expects older model-year, lower-ranged EV prices to continue declining in the coming months.
Moreover, the new electric vehicle leasing increase is expected to significantly boost inventory in the used market in a couple of years.
“Unlike the used ICE market that’ll continue to be volume constrained due to supply chain disruptions from COVID, skyrocketing PHEV and BEV lease rates from 2023 onward will mean that the used EV market really takes off in 2026.”
Recurrent Auto CEO Scott Case
All that said, the used EV market is indeed gaining major traction. Stabilizing prices, government support, and a growing selection of budget-friendly used EV models are creating a prime time for both buyers and dealers to jump in.
The report offers a wide range of insights on the used electric vehicle market going into Q3 2024. You can read the full Q3 2024 used EV market report here.
