The average price of used vehicles in the U.S. is rising across most segments, but none quite as much as the electric vehicle. Once defined by their depreciation, rising gas prices are now pushing the values of used EVs ever higher.
That’s according to iSeeCars.com, which analyzed the prices of nearly 14 million used vehicles that were one to five years old. It found that, in July, the average price for EVs increased by 54.3 percent year-over-year, as compared to combustion vehicles, whose average price was up just 10.1 percent.
“Until recently, mainstream electric vehicles typically depreciated rapidly due to improvements in battery technology and a lack of demand in the secondary market,” said iSeeCars Executive Analyst Karl Brauer. “However, soaring gas prices, improvements in public charging infrastructure, and a lack of inventory for new EVs have led to soaring demand for used electric vehicles.”
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The prices of both EVs and conventionally-fueled vehicles were both up to start the year, but increases for both started slowing in February and March. The Russian invasion of Ukraine, though, kicked off increases in gas prices, pushing the value of used EVs higher and slowing the growth of combustion vehicles.
As for specific vehicles, the biggest gainer on the second-hand market was the Nissan LEAF, which sold for an average of $28,787 in July 2022. That was a year-over-year increase of 45 percent, or $8,930, over 2021.
The Chevrolet Bolt, meanwhile, was the most affordable used EV on the road in July 2022, with average prices rising 29.3 percent to $28,291. All four Tesla models also saw prices increase, led by the Model S.
The Porsche Taycan was the only EV whose used values decreased in July 2022, with prices falling by $5,042, to $138,033. That amounts to a decrease of 3.5 percent. As EVs become more mainstream and a tax incentive for used vehicles is introduced, this might not be the peak for the second-hand EV market.
“More and more affordable new electric vehicles are entering the market, which means that used EVs won’t be as much of a novelty, especially once supply chain issues begin to improve,” said Brauer. “While prospective used car buyers will see steep price increases for EVs in the short term, it’s important to be patient because used EV prices are expected to decline in the coming months.”
