Study: Used Electric Vehicles Lose Luster In Deepening Price Crash. | Story
New research finds that car buyers are rejecting putting a “premium” tag on an electric vehicle as EV prices have declined over the past year.
In June 2023, according to an analysis of 2.2 million one- to five-year-old used cars conducted by iSeeCars, average used EV prices were more than 25% higher than used gas car prices. By May, however, used EVs were, on average, 8% lower than the average price for a used gas-powered car in U.S.
In dollar terms, the gap widened from $265 in February to $2,657 in May, according to the analysis, which said that over the past year gas-powered used vehicle prices have fallen 3% to 7%. EV prices, meanwhile, have fallen 30-39%.
In February of this year, used EV prices fell below those of their gasoline-powered counterparts for the first time.
“It’s clear used car shoppers will no longer pay a premium for electric vehicles,” iSeeCars executive analyst Karl Brauer said in an iSeeCars report published earlier this month. According to Brauer, electric power is now a drawback in the minds of consumers, making them less valuable in the marketplace than traditional vehicles.
