Used EV Market Flourishes with Remarkable Price Reductions

The used EV market is experiencing remarkable growth in 2023, despite facing production challenges and an often inadequate charging network. According to a recent market report by battery health and data startup Recurrent, the first half of 2023 witnessed a remarkable increase in used electric vehicle (EV) sales.

In the first six months of 2023, an incredible 140,000 used EV market found new owners in the United States. To provide context, it’s important to note that this number exceeds the combined sales of Tesla Model 3 cars in that timeframe. For context, approximately 200,520 new Model Ys were believed to have been sold in the first half of 2023.

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Used EV Market is Offering Remarkable Price Reductions

The landscape of new EVs sold during this time also saw other contenders, with the Chevrolet Bolt leading the pack at 33,659 units, followed by the Rivian R1T at 16,452 units, and the Volkswagen ID.4 at 16,448 units. But, Tesla continues to dominate both the new and used EV markets in the U.S.

Recurrent’s latest analysis underscores this dominance, stating, “Used EV sales, as a segment, now little the sales of every new EV model besides Tesla Model Y and 3.” Furthermore, the used EV market has become more affordable than ever in the past 2.5 years with an increasing number of vehicles. Also, it offers enhanced range and newer features.

For consumers interested in the used EV market, this trend brings good news. The cost of pre-owned electric vehicles in the United States has hit the lowest point of 2021. The current average price of this item stands at $27,800, reflecting a significant 32% decrease from the previous year. Tesla has had a noticeable impact on this situation, especially concerning the used Tesla Model 3. The average cost of this model has dropped by over $9,000 since 2021.

Several factors have contributed to the remarkable growth of used EV sales. Notably, the used EV inventory has expanded to triple over the past three years. It increased from 11,000 vehicles in April 2021 to over 33,000 today. Of this inventory, pure EVs now constitute 73 percent, up from 55 percent in 2021, with the remainder being plug-in hybrids.

Furthermore, an encouraging 30 percent of used EVs qualify for the $4,000 federal clean vehicle credit, and the process for obtaining this credit is set to become more convenient. Starting from January 1, 2024, customers will be able to transfer EV credits to car dealers. It will reduce the vehicle’s purchase price without having to wait until tax return filings the following year.

Concerns about the condition of used EVs are also being dismissed. Approximately 30% of the electric vehicles available are under two years old. Whereas 45% of the EVs fall into the category of being three years old or newer. While EV batteries naturally degrade over time, some owners have reported negligible degradation, even after exceeding 100,000 miles.

Elon Musk expresses strong assurance in the durability of the company’s batteries. He claims that these can last between 300,000 to 500,000 miles without problems. They have roughly 1,500 charge cycles. There is an eight-year warranty available for various models including Model 3 and Model Y. If the battery keeps at least 70% power, it has a life span of up to 120,000 miles. Surprisingly, many owners have reported retention rates exceeding 90 percent even after covering 100,000 miles.

The future of the used EV market in the U.S. looks bright, with these developments. So, we can expect EVs to become increasingly accessible and affordable in the upcoming time. This promising trend predicts a positive outcome for the used EV market.

Frequently Asked Questions

1. Are used electric cars a reliable option in terms of battery longevity and performance?

Ans: Absolutely, many used electric cars maintain their performance and battery capacity even after accumulating significant mileage. Some Tesla models, for instance, have reported over 90 percent battery capacity retention after 100,000 miles.

2. What incentives are available for purchasing used electric vehicles?

Ans: Thirty percent of used EVs qualify for the $4,000 federal clean vehicle credit, and starting from January 1, 2024, it will be easier for customers to transfer these credits to car dealers, reducing the purchase price.

3. Is the affordability of used electric cars expected to continue in the coming years?

Ans: Yes, the cost of used EVs has become significantly cheaper in the last two and a half years. It has reached its most budget-friendly rates since the beginning of 2021. As the market continues to grow, it is likely that affordability will persist and expand to a broader population segment.

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Aliha Zulfiqar
Aliha Zulfiqar
With a major in English Language and Literature, I'm a dedicated SEO Content Writer. Also, I love to write about technology. With over 2 years of experience, I've had the privilege of contributing to various renowned platforms. As I look forward to the future, I am committed to refining my work and delivering content that stands out.

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