Used EVs are Hot Sellers

Bloomberg:

“It was just a matter of time until people sort of started trusting used EVs enough to take the plunge and that would sort of have a ripple effect,” said Liz Najman, director of market insights at Recurrent, which provides range estimates and other EV-centric data to car dealers and shoppers.

A number of factors are feeding the buzz around used EVs. For one, there is finally a lot of product, as three-year leases expire on a crowd of cars purchased in 2022. That was the year a number of new battery-powered models first shipped to customers, including the BMW i4, Cadillac Lyric, Ford F-150 Lightning and Toyota bZ4X.

Meanwhile, prices of used EVs have steadily ticked down, a byproduct of more mainstream, non-luxury models and steep depreciation rates. Electric vehicles shed their value quickly, largely because consumers expect the technology to improve quickly. 

Like their new counterparts, used EVs are losing federal purchase credits as well, in their case, of up to $4,000. But prices on slightly worn EVs are already on par with other options. In August, the average used electric vehicle traded hands for $34,700, nearly level with the average used car or truck running on gas, according to Cox Automotive. And the EVs were generally only two to three years old, while internal-combustion options average about six or seven years old.

There’s also evidence that electric vehicles may prove to be more reliable over time than gas-powered machines. Without radiators, spark plugs or oil, they require little in the way of scheduled maintenance. Meanwhile, EV batteries are proving to be more durable than expected and in the US they are generally covered under warranty for at least eight years or 100,000 miles. 

A three-year old EV, for example, is no longer much of a compromise, according to Najman at Recurrent. It’s still likely to have a fairly long range, charge quickly and be stocked with amenities like a large touchscreen and a heat pump, for more efficient climate control. “These are modern cars that have, you know, all the bells and whistles you would want,” she said.

Cox Automotive:

Used EV Sales: Used EV sales reached a record 40,960 units in August, up 22% month over month and 59% year over year, pushing market share to a new high of 2.4%. The top five makes by volume showed double-digit month-over-month growth: Tesla (17,164 units, 17.6%), Chevrolet (3,801 units, 17.3%), Ford (2,456 units, 39.6%), BMW (2,031 units, 38%) and Nissan (1,888 units, 21.6%). While Tesla remained dominant, its share of the used EV market dipped to 41.9%, down 1.6 percentage points from July. Ford and Volkswagen posted the largest share gains among major brands, each up 0.8 percentage points.