The prices of used all-electric vehicles in the United States have gone down 28 percent since July 2022, according to the latest car buying report from Recurrent, with used Tesla prices seeing a decrease of more than 30 percent year-over-year as a consequence of the company reducing new vehicle prices.
Furthermore, Recurrent’s data shows that nearly 40 percent of used EVs in the United States are available at less than $30,000, which is good news for people going after the potential $4,000 tax credit offered by the IRS for eligible zero-emissions vehicles that cost $25,000 or less and have a battery of at least 7 kilowatt-hours.
The declining prices for used EVs in the US are partly due to price cuts for new cars, including federal incentives for battery-powered cars, but also because demand for used cars has softened.
As per Recurrent, Tesla models hold their value better than other EVs over three years, with the 2022 Model 3 losing around 30 percent of its value, the Model S 27 percent, the Model X 24 percent, and the Model Y 23.5 percent.
At the same time, the Ford F-150 Lightning appreciated in value on the used car market, compared to the average MSRP in 2022.
“It was always the goal to reach price parity between gas and electric cars; lower purchase prices for new and used EVs make them more accessible and appealing,” said Liz Najman, lead researcher at Recurrent. “Lots of recent headlines have been quick to equate luxury EV sales with overall EV interest, but it’s not that simple. Tesla is coming off its best quarter, and Rivian is exceeding its delivery targets.”
Recurrent included the following models in its 2023 Price Index:
- 2017 Chevrolet Bolt
- 2018 Nissan Leaf
- 2018 Toyota Prius Prime
- 2019 Tesla Model 3
- 2019 Chevrolet Volt
- 2020 Tesla Model Y
- 2020 Hyundai Kona EV
- 2021 Ford Mustang Mach-E
When it comes to popularity, Tesla holds over 30 percent of the used car inventory nationwide, while Ford and General Motors dominate the EV market in the Midwest.
