Used EV prices fall below gas-powered cars for first time

Prices for used electric vehicles have fallen below cars powered with gasoline for the first time, according to a new analysis from iSeeCars.

The average used EV price was $2,657 lower than the average for used traditional and hybrid car prices in May, reversing a decade-old trend. The average used EV price is now $28,767 compared with $31,424 for a non-EV.

“There’s no denying the crash in used electric vehicle values over the past year,” iSeeCars Executive Analyst Karl Brauer said in a statement Tuesday. “We’ve watched EV prices fall between 30 and 40 percent since June of last year, while the average gas car’s price has dropped by just three to seven percent in that same timeframe.”

For years, electric vehicle prices have kept wannabe buyers on the sidelines, but that began to change in February when used EV prices fell blow gas-powered cars for the first time. They have been losing value faster than prices for traditional and hybrid cars in the months since, reflecting weak demand.

For its analysis, iSeesCars looked at 2.2 million used cars between one and five years old that were sold in May 2023 and May 2024. Compared with a year earlier, the average used EV price fell 29.5% while the average used gas car price fell 6.1%.

A year ago, used EV values were $8,000 more, or 25% higher, than the average used gas car.

“While the drop in used EV prices is dramatic, what’s more disconcerting is no indication of used EV values stabilizing,” Brauer said. “At some point used EV prices will have to bottom out, but we don’t appear to be at that point yet.”

The Jaguar I-PACE EV led the list of used cars with the biggest year-over-year price drops. It lost $14,053 in value, or 30.1%. The Chevrolet Bolt EV, Hyundai Kona Electric, Kia Niro EV and Nissan Leaf rounded out the top five used cars with the biggest price decreases over the past year. Eight of the top 10 used cars with the biggest value losses were EVs.

None of the used vehicles that are worth more now than a year ago are electric, the study found.

“With so many EVs entering the new car market in recent years, and then flowing into the used market, it suggests an over-supply condition that will continue as more EVs come off lease,” Brauer said. “Without a major catalyst to increase EV demand, used prices for these models will likely keep falling.”