Second-hand electric vehicles now cost less than used petrol cars, as EV backlash accelerates

Second-hand electric cars are now cheaper than their petrol counterparts for the first time, and the gap is widening rapidly.

This is according to a new study from comparison site iSeeCars, which found the cost of the average used electric vehicle fell $265 below that of a typical gasoline car in February.

This marked the beginning of the trend and according to the latest data from May, the price difference has increased to $2,657.

Last year, average used car values ​​fell between 3 and 7 percent, according to the report, while used electric vehicle values ​​plummeted between 29 and 39 percent.

While this price drop may be good news for Americans looking to make a cheaper switch to an electric vehicle, the price drop is yet another sign of declining U.S. demand for these cars.

The study analyzed more than 2.2 million used cars one to five years old sold between May 2023 and May 2024.

It found that the average price of used electric vehicles is down 29.5 percent year over year, compared to 6.1 percent for the average price of used gasoline cars.

In May of this year, the average price of a used electric vehicle was $28,767, with the typoca type; gasoline car $31,424.

These prices show a significant change compared to a year ago, when the figure for an electric vehicle was $40,783 and for gasoline was $33,469.

“There is no denying the drop in the value of used electric vehicles over the past year,” said Karl Brauer, executive analyst at iSeeCars.

While EV values ​​appeared to stabilize in late 2023, they saw a substantial drop in February and have continued to decline over the past four months.

“It is clear that used car buyers will no longer pay more for electric vehicles and, in fact, will view electric powertrains as a detractor, making them less desirable – and less valuable – than traditional models,” Brauer said. .

A comparison between the BMW 3 Series and the Tesla Model 3 shows how price drops have been different between electric and gasoline cars in the last year. Both cars are compact luxury sedans with similar features.

A used Tesla Model 3 was priced $2,635 more than a BMW 3 Series in June 2023, according to the report. But in May of this year, the Model 3 was priced $4,806 less than the Series 3.

The drop in prices is easier to explain when it comes to traditional gasoline cars.

Demand for used cars surged during the pandemic amid shortages in new vehicle production. As supply chains have recovered, this demand has slowed.

But there are other obstacles when it comes to the electric vehicle market, despite President Biden’s push for widespread adoption of green cars.

in a AAA survey Earlier this month, only 18 percent of consumers said they were likely to buy an electric vehicle.

That’s down from 23 percent last year, amid growing concerns about higher costs, so-called “range anxiety” and a lack of convenient charging stations across the United States.

“Early adopters who wanted an electric vehicle already have it,” said Greg Brannon, AAA’s director of automotive research.

“The remaining group of people who have not yet adopted electric vehicles consider practicality, cost, convenience and the ownership experience, and for some, those are obstacles big enough to prevent them from making the leap to going all-electric.” .

Instead, Americans are increasingly turning to hybrid cars as an alternative.

Data from earlier this year revealed that hybrid cars are being purchased three times faster at dealerships than electric cars.

According to research site Edmunds, these vehicles also sell twice as fast as gasoline cars.

A traditional hybrid vehicle has a gasoline-powered internal combustion engine and an electric motor (a battery) that work together to power the car.

In February, hybrids typically left dealerships in 25 days, Edmunds found, while electric vehicles took an average of 72 days. Gasoline cars, meanwhile, typically sell out after 52 days.