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.
