According to recent data from Recurrent, used EVs are becoming cheaper in the United States. This is particularly true for Tesla models.
Recurrent, an EV battery firm, compiles quarterly reports on used EV prices using data from Marketcheck and BlackBook. These reports indicate a growing demand for used EVs, which is driving down prices.
One of the reasons for the historically high prices of used EVs was the limited availability of vehicles in the market. But in the first half of the year, sales volumes of used EVs reached 140,000. Therefore, used EV sales surpassed the sales of any individual new EV model except for the Tesla Model Y.
Recurrent’s index for overall used EV pricing has dropped by 32% compared to last year. A typical used EV now costs $27,800, the lowest average price since the first half of 2021.
According to Green Car Reports, used EV prices increased significantly before peaking in mid-2022. This was primarily due to complex supply chain economics that led to higher EV battery costs.
However, the market is now adjusting. And used Model 3s are declining in price faster than any other EVs.
Used Model 3s are $9,000 cheaper today than they were in 2021. By comparison, Chevy Bolt prices have fallen by just $1,500 over the same time frame.
This decline in prices is making used EVs more affordable again.
iSeeCars, which conducts regular surveys of asking prices across various dealerships, has observed a decrease of 19.5% in used EV prices and around 10% in new EV prices over the past 11 months.
The recent Q3 earnings call revealed that Tesla’s sales rose by 36% year-over-year. As a result, more used EVs from Tesla will enter the market in the coming years. This should cause prices to fall further.
Some studies also suggest that Tesla’s long-range models may retain their value better in the long-term.
Used Model 3 prices are also likely to fall due to industry-wide advancements. Cleantech companies are making rapid progress in evaluating used EV battery health. The difficulty in evaluating battery health has been a major hindrance to the growth of the used EV market.
Image Source: Lectrium EVs, https://shorturl.at/bEV19