Sales of used electric vehicles are growing at a rapid rate. Per a new report from industry analysts Cox Automotive, sales of pre-owned EVs rose 32% in Q1 2023. EVs now account for 7% of the used American automotive market, up from 3.1% in 2021.
Over 225,000 used EVs exchanged hands in the US last quarter, a new record. According to the most recent data, the average price of a used EV was $43,400. However, that figure is likely lower now with used prices continuing to fall.
Prices are coming down due to a myriad of reasons, including several economic factors. However, Tesla has played a major role in used prices falling as well. By drastically lowering new prices for the Model 3 and Y, the used market has had to correct itself on several occasions.
The 3 and Y compete with such a wide array of electric vehicles and account for over half of the entire market. Hence a reduction in 3 and Y pricing will have a knock on effect on the used price of a Volkswagen ID.4 or Ford Mustang Mach-E, for example.
It could be argued that now is a great time to buy a used EV, although even better deals could be around the corner with general supply continuing to grow. That said, it's hard to overlook some prices. Low mileage 2018/19 Model 3s are now trading hands for as little as $25,000. On the other end of the market, you can get a will specced 2022 Mercedes EQS with under 15,000 miles for a small bit over $70,000. Given that car cost over $100,000 12 months ago, that's a pretty sweet deal in our eyes.