Despite the hurdles of production challenges and an evolving charging network, the used electric car market is witnessing a remarkable boom in 2023. According to the latest market report from battery health and data startup Recurrent, the first half of 2023 saw an astounding surge in used electric vehicle (EV) sales, outstripping the majority of new EV sales.
In the U.S., a whopping 140,000 used EVs found new homes in the first half of 2023, surpassing even the total sales of new Tesla Model 3s during the same period. For context, it’s worth noting that approximately 200,520 new Model Ys hit the road in the first half of 2023.
When examining other new EV models sold in the first half of 2023, the Chevrolet Bolt claimed the runner-up spot with 33,659 units sold, followed by the Rivian R1T at 16,452 units and the Volkswagen ID.4 at 16,448 units. Unsurprisingly, Tesla continued to dominate both the new and used EV markets in the United States.
Recurrent’s analysis of the situation reveals that “used EV sales, as a segment, now dwarf the sales of every new EV model besides Tesla Model Y and 3.” Furthermore, the used EV market is currently more affordable than it has been in the past 2.5 years, with a shift towards newer, longer-range models.
For consumers seeking a cost-effective entry into the world of EVs, these developments are excellent news. The average price of a used EV in the United States has dropped to $27,800, reflecting a substantial 32 percent decrease year-over-year. Tesla has played a notable role in influencing this trend, with the average price of a used Tesla Model 3 decreasing by more than $9,000 since 2021.
Several factors have contributed to the flourishing used EV market. Notably, the used EV inventory has grown significantly, expanding threefold over the past three years. In April 2021, it stood at 11,000 vehicles, but today, it boasts over 33,000. Moreover, the share of pure EVs in this inventory has increased from 55 percent in 2021 to an impressive 73 percent today, with the remainder being plug-in hybrids.
Tesla CEO Elon Musk’s statement earlier this year further adds to the optimism. Musk asserted that Tesla batteries last between 300,000 and 500,000 miles or 1,500 charge cycles. Most Model 3 and Model Y variants are backed by an eight-year or 120,000-mile warranty, provided that the battery capacity retention remains above 70 percent. Many owners have reported battery capacity retention exceeding 90 percent after covering 100,000 miles.
The bright outlook for the used EV market in the United States suggests that electric vehicles are on track to become more affordable and accessible to a broader segment of the population in the coming months and years. As prices continue to drop and the availability of used EVs increases, the electric revolution appears poised for even greater momentum.
