Used EV Prices Tank as Demand Craters
Only Tesla’s Model Y doesn’t make the top 10 list for price drops, while its other three all-electric models make the top 5.
Photo: iSeeCars
Used electric vehicle average prices have fallen more in the past year than prices in every other vehicle category, plummeting 33.7% compared to a 5.1% drop in overall average used car pricing and a 9.6% drop in the average used hybrid price, according to an iSeeCars study released Nov. 28.
Car prices and selling times overall have come off their pandemic-induced highs, with electric vehicles now the slowest-selling segment of the used car market. The dynamic further reflects the heavy drop in EV demand.
iSeeCars analyzed over 2.3 million new and 1- to 5-year-old used cars to evaluate the market for EVs relative to other segments. The analysis compared EVs to hybrids and conventional fuel vehicles and found substantial weakness in measures of demand for EVs.
Used Electric Vehicle Demand Nosedives
Used EV price reductions from a year ago are far outpacing the drops in price for gasoline and hybrid models, confirming a shift in demand throughout the used car market. Average used EV prices in October 2022 were over 60% higher than other used cars, at $52,821 compared to $32,627, but by 2023 they had dropped to within 13%, at $34,994 compared to $30,972.
Closer Look: EV Hype vs. Reality
“Used car prices started to contract about midway through 2022,” said Karl Brauer, iSeeCars executive analyst, in a news release. “The average used car price has stabilized around 5% below previous-year levels, but used electric vehicle prices dropped much farther and faster, with EVs currently down more than 33% compared to a year ago.”
Used Car Average Days on Market by Segment
Despite their falling prices, used EVs are selling slower than gasoline or hybrid models . The average EV takes 52.4 days to sell versus 49.2 days for the average used car. A year ago, the average EV sold in 37.5 days, further reflecting a big drop in EV demand across the used car market.
Even with massive price drops, electric vehicles are selling slower than gasoline and hybrid vehicles,” Brauer said. “This combination of lower prices and slower sales suggests EVs have hit a market demand threshold that will be difficult to break through. Everything from economic concerns to growing competition among electric vehicles is contributing to their downward trend.”
Which Three EV Models Rank Among the 10 Slowest Selling Vehicles?
Luxury models dominate the slowest-selling used car list, but three electric cars also make the top 10 list for slow sales: Kia EV6, Ford F-150 Lightning and Polestar 2.
More 411: Electrification Realities
“Most of today’s slowest selling used cars are premium models or electric vehicles, with the Maserati Quattroporte, Kia EV6, and Jeep Grand Cherokee taking over twice as long to sell as the average used vehicle,” Brauer said. "The F-150 Lightning, Ford's electric truck based off the best-selling vehicle in the U.S., is also struggling to find buyers."
Three Hybrids in the Top 10 Fastest-Selling Used Cars
Hybrids and sports cars are among the fastest-selling used cars right now. The top-ranked BMW X5 hybrid’s average time to sell is 26.8 days, which is about twice as fast as the average for all used cars.
Related: Developing TCO on Electric Vehicles
One electric vehicle, Rivian’s R1T midsize truck also makes the list and is under the overall average at 35.5 days on market. Rivian's truck is produced in relatively limited quantities and still has strong demand.
“The fastest-selling used cars represent the dual nature of today’s car market,” Brauer said. “You have a large contingent of consumers looking to cut fuel costs, thus the popularity of hybrids. But you also have shoppers who aren’t – yet – feeling the crunch of higher interest rates and inflation and these buyers want something fun like a BMW M2 or Porsche 718 Boxster.”
Electric Vehicles Lead the Charge on Falling Prices
Five of the top 10 vehicles with the largest price drops are electric models, including the Nissan LEAF, three Teslas, and the Chevrolet Bolt, which are all down 25% or more. “Only Tesla’s Model Y doesn’t make the top 10 list for price drops, while its other three vehicles all make the top 5,” Brauer said. Two hybrids also saw big price reductions and, like the EVs in this list, are older models in need of a redesign.
“It’s common for old models to drop in price when the market contracts,” Brauer said.” Most of the models on this list were introduced several years ago and need a redesign to remain competitive.”
Three EVs Among Top 10 Slowest-Selling New Cars
The top 10 slowest-selling new cars take from 89.9 to 119.6 days to move off dealer lots, which is more than twice as long compared to the new car average of 44.4 days.s EVs among the top 10 include the Mercedes-Benz ECS sedan, Mitsubishi Outlander PHEV, and Volvo XC40 Recharge, respectively ranked No. 1, 2 and 6.
“The slowest-selling new cars are a combination of electric vehicles and luxury models, with nearly all of the non-EVs being older designs in need of a refresh,” Brauer said.
Meanwhile, new hybrid vehicles make up seven of the 10 fastest selling new cars, reflecting their combination of affordability and fuel efficiency when gas prices are near historic highs.
Said Brauer: “Hybrid drivetrains have migrated from small hatchbacks to nearly every vehicle category over the past decade. Today’s buyers can find hybrid technology in almost every new-car showroom. Their lower price and lack of range anxiety, when compared against EVs, is clearly resonating with consumers.”
For detailed charts and lists: iSeeCars Study
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