Prices for used electric cars are falling faster and more significantly than in the market for cars with internal combustion engines. One of the main reasons is the decline in prices for new Teslas.
This trend was recorded by analysts of the automotive research company iSeeCars.com. In their June 2023 report, they note that prices for used electric vehicles have fallen by almost 30% year-on-year. While prices fell by 8.8% in January and by 16.8% in March, they accelerated to 29.5% in June.
To obtain objective results and compare analytical conclusions, the experts analyzed transactions with more than 1.8 million cars from one to five years old for the period from June 2022.
“A year ago, prices for used electric vehicles were growing faster than for a conventional car. Today, prices for electric vehicles are falling almost 10 times faster than for classic cars, reflecting a clear shift in the supply and demand for electric vehicles,” said Carl Brauer, Executive Analyst at iSeeCars, in a commentary to the report.
While electric vehicles are falling in price at an accelerated pace, the overall market for used classic cars has stabilized: after falling by 2.9% in May and 3.6% in April, overall prices for ICE vehicles fell by 3.6% in June.
The fall in prices for used electric vehicles is due to the fact that Tesla has begun to massively reduce the prices of its Model 3 and Model Y cars to increase sales. As prices for new models have fallen, the value of used electric vehicles has also begun to decline sharply.
As a reminder, due to the price reduction, Tesla shipped 466,140 electric vehicles to customers in April-June, compared to 254,695 in the same period last year.
There is another factor. According to the aforementioned Brower, other factors behind the decline in prices on the used electric vehicle market include the stabilization of fuel prices to some extent (which has hurt demand for electric vehicles). Therefore, budget-conscious buyers are looking for the best deals on cars regardless of the transmission.
