Used EV Market Sees Strong Growth

May 9, 2024

49 2 minutes read

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Carvana, a leading online platform for buying and selling used vehicles, recently released its EV Trends Report for the first quarter of 2024. This document sheds light on the expanding used electric vehicle (EV) market and emphasizes how improved affordability is catalyzing consumer interest and purchases. As the EV landscape evolves, Carvana’s data offers a clear view of current trends and future opportunities within this sector.

Key Highlights:

Rapid Growth Anticipated for Used EV Sales: Despite electric vehicles accounting for 7.6% of new car sales in 2023, their presence in the used car market remained under 1%.
Narrowing Price Difference: The price gap between Carvana’s used EVs and traditional internal combustion engine vehicles has reduced significantly, from $13,000 in the first quarter of 2023 to $7,000 in the same period in 2024.
Increasing Sales Mix: Carvana’s used EV sales mix has reached a new peak of 4.3% of total sales in the first quarter of 2024, indicating a trend toward electric mobility.
Enhanced Affordability Through Tax Credits: In the first quarter of 2024, 24% of Carvana’s EV and plug-in hybrid electric vehicle (PHEV) sales were eligible for the Federal Used Clean Vehicle Credit, making these vehicles more accessible to a broader range of consumers.

Ernie Garcia, CEO of Carvana, highlighted the significance of these trends: “The significant, multi-year growth in new EV sales is a leading indicator of the potential of the used EV market. As a larger selection of EVs makes its way into the used fleet, prices normalize, and tax credits become available, more used car buyers will have the opportunity to access the EV category,” he stated.

Additional Insights from the Report: The report also provides detailed analysis including state-by-state sales data, and lists the top models that qualify for EV credits. Carvana continues to diversify its inventory to include over 50 different models of EVs, accommodating various customer preferences and price points.

About Carvana: Founded over a decade ago, Carvana has transformed the traditional car buying and selling experience. Offering a fully online platform, it allows customers to purchase cars from the comfort of their homes, with options for home delivery or local pickup across over 300 U.S. markets. A Fortune 500 company, Carvana prides itself on providing a quick, enjoyable, and fair transaction process, boasting a diverse selection of vehicles and comprehensive financing options.