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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. You might also like: Affordable Sub-$25,000 Jeep Renegade EV To Launch In 2027 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% 1- to 5-Year-Old Used EV Prices vs Used Gas Car Prices 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% Top 10 cars with the biggest Y-o-Y price drops You might also like: Hyundai Casper-based Inster Sub-compact EV Teased w/ 355 km of Range 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.

A new poll interacts with 6,265 people to discuss their views on owning EVs, along with challenges associated with it. As per the latest survey, potential EV owners highlight range anxiety and high initial costs as top reasons for the reluctance to purchase an electric car. This poll was conducted by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago. Interestingly, the results resemble the concerns of people from last year. It brings forth the challenges in front of President Biden’s plans to boost EV sales. This poll even suggests that people are still more likely to consider plug-in hybrids. You might also like: Average Gas Cars More Expensive Than Long-Range EVs – Study Range Anxiety and High Costs Stand Against EV Sales The survey shows that only 9% of participants currently own an electric. However, 13% own or lease a gas-hybrid vehicle. Moreover, about 4 in 10 U.S. adults say they would be at least somewhat likely to buy an EV the next time they buy a car. On the other hand, 46% say they are not too likely or not at all likely to purchase one. Note that the Environmental Protection Agency requires that about 56% of all new vehicle sales be electric by 2032, as per the new rule. In addition, at least 13% must be plug-in hybrids or other partially electric cars. The possibility of young people buying an EV is higher than those over 45. Only 21% of U.S. adults say they are “very” or “extremely” likely to buy an EV as their next car. The major reasons for people not as into EVs as anticipated include range anxiety and high initial costs. We know that the average price for a new electric car in the U.S. was $52,314 in February, as per Kelley Blue Book. While this is 12.8% lower than last year, it is still higher than the average price of all new vehicles, $47,244. Due to this reason, 6 out of 10 adults cite cost as the prime reason why they would not opt for an EV as their next car. One of the participants of this survey, Caleb Jud from Cincinnati, is leaning towards buying a plug-in hybrid instead of an EV. He states, “The thought of getting stuck in the driveway with an EV that won’t run is worrisome, and I know it wouldn’t be an issue with a plug-in hybrid.” This is in reference to the performance of electric car batteries in cold weather conditions. Also, people not living close to a charging station cite it as a major hurdle preventing them from contemplating an EV. You might also like: Jeep Plans To Increase Its PHEV Sales By 50% In 2024 Learn Electric Cars Says Even though EV sales have been rising rapidly and the costs of Lithium-ion batteries are coming down steadily, regular folks still don’t buy into the idea of purchasing an electric car. We must understand that the initial wave of EVs was driven by the relatively affluent people in society everywhere across the globe. That is why sales have risen so rapidly in the last few years. However, we are at a point where a slowdown is expected. This is particularly true for the largest markets including the U.S., China and Europe. To bring new buyers on board, affordable mass-market EVs are the need of the hour. On top of that, rapid development of charging infrastructure is imperative. The government subsidies and incentives are already in place. All these factors need to combine to result in a boost in EV sales going forward. We see many carmakers working in this direction. Affordable EVs are the next big target for legacy, as well as new carmakers to spur demand.

The study claims that long-range EVs have become more affordable than average gas cars. A Bloomberg study finds that the average new gas cars in the U.S. is more expensive than new long-range EVs. Long range, here, implies an electric car with a range of over 300 miles (483 km). In a certain manner, 300 miles has become a benchmark as to what potential EV owners and carmakers are aiming for in a ‘regular’ electric vehicle. As range anxiety remains a prevalent issue, new EV buyers look at this figure as a somewhat acceptable range. That is the reason why we see multiple variants of an EV – Standard, Long Range and Performance. You might also like: VW Confirms An Affordable €20,000 Entry-Level EV For 2027 Average Gas Cars More Expensive Than EVs As per this report, the national average cost of a new gas car in the U.S. is around $47,000. Hence, there are a few key EVs which are priced below this mark from top carmakers in the world. These include electric cars from Tesla, Hyundai-Kia and General Motors. For instance, the 2024 Hyundai Ioniq 6 offers a range of an attractive 361 miles (581 km) on a single charge. Its SE trim has a retail sticker of $42,450 before taxes and fees. Similarly, the Tesla Model Y starts at just $44,900 before taxes and fees. It boasts a range of 320 miles (515 km) on a single charge. Interestingly, if we take into consideration the federal tax credit of $7,500, these prices can drop further significantly. Finally, the new Chevy Equinox EV in its 2LT variant costs $42,000. With the tax credit, it would dip even below $35,000. However, things could really get exciting once the 1LT version launches later in the year. It will have a price tag of a mere $33,600 before taxes and fees. It will let the users drive for 319 miles (513 km) as per EPA. Therefore, we can reasonably conclude that the future is certainly pointing in the direction where EVs would be much closer to regular cars in terms of pricing. Now, I understand that some of you might consider this too microscopic an analysis and I agree. But we have to start from somewhere. I must also mention here that, in general, EVs are still around 15% more expensive than gas cars. This is confirmed by a report from Cox Automotive. Clearly, carmakers need to come up with many more affordable EVs for the masses. The good news is that they are already working towards this. For instance, the CEO of Stellantis, Carlos Tavares said, “Affordability is the key success factor right now. If you want the scale to materialize, you need to be selling BEVs to the middle classes. It’s not ‘Watch out, there is a storm coming, and we are in the storm, and this storm is going to last a few years. It’s going to put a number of companies in trouble.” He remarked about the need to come up with affordable EVs for the mass market and the upcoming $25,000 electric Jeep will be crucial in that strategy. You might also like: Young Americans Open To Chinese EVs Despite 100% Tariffs – Study Learn Electric Cars Says As this initial wave of EVs slowed down a little, the early adopters were definitely the most affluent personalities, for the most part. However, in order to make EVs widely popular, the contribution of the masses is a must. That is what we see with major carmakers including the likes of Hyundai-Kia, Ford, GM, Volkswagen Group, Tesla, Stellantis, etc. We already know how successful budget Chinese EVs have been in China and Europe. The future of electric mobility, I feel, definitely belongs to affordable EVs and mass markets. As the EV wave spreads its roots across emerging nations, the need for compact and inexpensive electric cars is apparent. I must also add that the costs of components like lithium-ion batteries are going down as well. The technology is becoming more and more sophisticated. Hence, we must brace ourselves for the onslaught by affordable electric cars in the immediate future.