In the ever-evolving landscape of the automotive industry, electric vehicles (EVs) continue to captivate consumers with their eco-friendly features and cutting-edge technology. However, a recent study by iSeeCars.com has shed light on a changing trend in the used EV market. The report reveals that the time it takes for a used electric vehicle to find a new owner has more than doubled since the previous year. This change in dynamics indicates shifting preferences among car buyers and the unique challenges faced by the EV market.
According to iSeeCars.com’s market study, in July 2023, a second-hand EV spent an average of 57.8 days on the market before being sold. This is a stark contrast to the 26.4 days it took for a used EV to find a buyer in July of the previous year. This extended time frame can be attributed to a variety of factors, including increased competition in the EV space, evolving consumer preferences, and a broader availability of new car options.
However, there is a silver lining amidst this extended selling time. The average price of used EVs has significantly decreased, dropping by 38.9 percent compared to the previous year. This decline in price suggests that while EVs might be taking longer to sell, they are becoming more affordable to a wider range of consumers, potentially increasing their overall appeal.
In the category of fastest-selling 1 to 5-year-old used EVs, a clear winner emerges: the Tesla Model Y crossover. This impressive electric vehicle boasts an average of 47.6 days on the market, with an average price of $46,067. This is a testament to the enduring allure of Tesla’s brand and technology, even in the used car market. Following closely behind is the Nissan Leaf, spending an average of 51.3 days on the market at an average price of $20,473. The Tesla Model 3, the more affordable offering from the American EV brand, secures the third spot with an average of 51.8 days on the market and an average price of $35,039.
The dominance of the Tesla Model Y in the used EV market is notable. Despite being more expensive than the Tesla Model 3, the Model Y’s popularity showcases its blend of performance, utility, and technology, which resonate strongly with consumers.
Interestingly, the iSeeCars.com report also indicates that internal combustion engine (ICE) vehicles are selling at a faster rate than EVs. Used ICE vehicles spent an average of 38.9 days on the market, representing a 26 percent increase from the previous year. These ICE vehicles were sold at an average price of $32,249, down from the previous year’s average of $38,839. This contrast highlights the unique challenges that the used EV market is currently facing.
Karl Brauer, iSeeCars Executive Analyst, suggests that the initial surge in used car prices was driven by a lack of new car inventory. However, with new car options becoming more readily available, consumers are demonstrating a preference for the value presented by the used car market. This shift in behavior is reflected in the data, with both new and used EVs taking over 50 days to sell on average.
While this shift might be concerning for the EV market, it also presents an opportunity for automakers and dealers to strategize and adapt. The combination of lower prices and extended selling times challenges them to find innovative ways to attract and engage potential EV buyers.
In conclusion, the iSeeCars.com report for July 2023 provides valuable insights into the evolving dynamics of the used EV market. The Tesla Model Y’s position as the fastest-selling used EV underscores its popularity and appeal among consumers. As the automotive industry continues to navigate changing preferences and technologies, these findings will serve as a compass for automakers and dealers seeking to navigate the shifting currents of the market.