It is for the first time ever that the prices of used EVs have dropped below used gas cars.
A comprehensive study by iSeeCars reveals that used EVs are witnessing a significant drop in prices in comparison to used gas cars. This survey incorporated over 2.2 million used cars which are 1- to 5 years old sold between May 2023 and 2024. It concluded that the price of an average used electric car was 29.5% less vs 6.1% less for the average used gas car. This translates to $28,767 for EVs in contrast to $31,424 for gas cars. These numbers were $40,783 and $33,469 a year ago.
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Used EVs Cheaper Than Gas Cars
To prevent anomalies, heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2023 model year, and vehicles in production for fewer than four of the last five model years for each period were excluded from further analysis. The executive analyst at iSeeCars, Karl Brauer said, “There’s no denying the crash in used electric vehicle values over the past year. We’ve watched EV prices fall between 30 and 40 per cent since June of last year, while the average gas car’s price has dropped by just 3 to 7 per cent in that same timeframe.”
| Month | Avg. Used EV Price | Avg. Used Gas Car Price | $ Diff. | % Diff. |
| May 2024 | $28,767 | $31,424 | -$2,657 | -8.5% |
| April 2024 | $29,066 | $31,391 | -$2,325 | -7.4% |
| March 2024 | $29,925 | $31,015 | -$1,090 | -3.5% |
| February 2024 | $30,904 | $31,169 | -$265 | -0.9% |
| January 2024 | $33,275 | $31,689 | $1,586 | 5.0% |
| December 2023 | $33,572 | $29,789 | $3,783 | 12.7% |
| November 2023 | $34,275 | $30,116 | $4,159 | 13.8% |
| October 2023 | $34,994 | $30,906 | $4,088 | 13.2% |
| September 2023 | $34,926 | $31,147 | $3,779 | 12.1% |
| August 2023 | $36,161 | $31,446 | $4,715 | 15.0% |
| July 2023 | $38,797 | $32,251 | $6,546 | 20.3% |
| June 2023 | $40,916 | $32,715 | $8,201 | 25.1% |
Brauer continues, “It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable – and less valuable – than traditional models. Over the past year, the average used price for traditional internal combustion engine vehicles has shifted by no more than 7 per cent, with prices most months changing between 3 and 6 per cent. This is in stark contrast to the 30 to 40 per cent drops in used EV pricing.”
What is intriguing in this study is that the 8 out of 10 used cars with the biggest price drops are EVs. Here is the list of the top 10 used cars with the biggest year-on-year price reductions.
| Rank | Model | Avg. Used Price | YoY $ Price Diff. | YoY % Price Diff. |
| 1 | Jaguar I-PACE | $32,651 | -$14,053 | -30.10% |
| 2 | Chevrolet Bolt EV | $18,081 | -$7,041 | -28.00% |
| 3 | Hyundai Kona Electric | $21,602 | -$7,780 | -26.50% |
| 4 | Kia Niro EV | $22,893 | -$7,561 | -24.80% |
| 5 | Nissan LEAF | $17,593 | -$5,546 | -24.00% |
| 6 | Tesla Model 3 | $28,439 | -$8,932 | -23.90% |
| 7 | Tesla Model X | $59,296 | -$13,690 | -18.80% |
| 8 | Jaguar E-PACE | $27,811 | -$5,658 | -16.90% |
| 9 | Tesla Model S | $55,340 | -$10,399 | -15.80% |
| 10 | Maserati Levante | $49,096 | -$8,991 | -15.50% |
| – | Average | $31,368 | -$2,184 | -6.50% |
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Learn Electric Cars Says
It is understandable that people would be wary of buying used EVs. The main reason is the potential expenses related to the battery. Also, since new EV sales are rising rapidly, the used EV market is getting excessive supply without a corresponding increase in demand. Hence, the prices are tanking. Finally, there is still not an overtly majority of car owners looking to switch to EVs. Therefore, this vast study incorporates all these aspects to infer that the average prices of used EVs are lower than used gas cars.
Having said that, we know that carmakers offer a warranty of around 8 years on EV batteries in most cases. Hence, if you are getting a 2- or 3-year-old electric car at a massively discounted price, you could consider buying it. Even if you end up driving for around 4-5 years, you will not have to worry about the battery replacement costs. You can get some pretty decent deals even on slightly premium EVs at the moment. This would give you an opportunity to experience living with an electric car. Going forward, you will be in a better place to make the right decision for yourself.