Used Ev Sales Continue To Rise: Is The Predicted Rush On?

Unsurprisingly, new electric vehicle sales were down nearly 22 percent in May compared to last year, but used EVs were on the move, sales rising 24.7 percent on a year-over-year basis.

With gas prices high, and expected to remain so for several months even after the latest peace accord with Iran, used EVs have become popular because of their affordability both by avoiding the gas pump as well as their sticker price. 

Tesla is the leaders with over 15,300 vehicles sold, which was down slightly compared to last month. Used Hyundai, Chevrolet, Ford, and BMW EVs followed Tesla. Sales weren’t just up over last year’s numbers, but over last month as well by 5.5 percent.

“Month-over-month gains were broad-based, with many brands proving popular, led by strong growth among Hyundai, BMW, Volkswagen, and Cadillac,” noted Stephanie Valdez Streaty, Cox’s director of industry insights. “The consistent year-over-year growth underscores continued expansion of the used EV business as off-lease returns and trade-ins build inventory depth across more brands and price points.”

While the average price of gas has been over $4 a gallon for much of the year, the new deal with Iran could see that price drop below that number in the new week or so. Oil prices dipped significantly in the days after the deal was announced. Gas prices haven’t dropped as much because the oil supply is still months away from reaching refineries.

The average price for a used EV last month rose 3.8 percent from April to $37,083. That jump was across the board. By comparison, new EV prices averaged $54,532. 

Prices on used EVs are expected to rise, in part, because the supply is dropping. It fell 7.5 percent in May to a 31-day supply. That is well below new EV and internal combusition engine-powered vehicle supplies across the U.S. currently, Cox noted. 

Days’ supply tightened broadly among high-volume brands, led by Volkswagen and Honda. Tesla, Toyota, and Hyundai availability also remained relatively lean, reinforcing strong turnover across the used EV segment, Cox wrote in its analysis. Despite this, there expected to be an influx of off-lease EVs coming into the market for the next several months, helping to off-set price increases.

[Images: Tesla, Chevrolet, AAA]

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