(iSeeCars) – Used electric vehicle prices fell below average gas car prices in February and EVs have continued to lose value faster than the average used gas car, according to the latest study by iSeeCars.
The study analyzed over 2.2 million 1- to 5-year-old used cars sold in May 2023 and 2024 and found that the average used EV price is down 29.5 percent year-over-year versus 6.1 percent for the average used gas car price. In May 2024, the average used electric vehicle was priced at $28,767, or 8.3 percent below the average gas car at $31,424. These prices show a major turnaround from a year ago, when the average used EV cost $40,783 and the average used gas car cost $33,469.
Usee Electric Vehicle Market Crashing
“There’s no denying the crash in used electric vehicle values over the past year,” said Karl Brauer, Executive Analyst at iSeeCars. “We’ve watched EVs prices fall between 30 and 40 percent since June of last year, while the average gas car’s price has dropped by just 3 to 7 percent in that same timeframe.”
While electric vehicle values appeared to stabilize at the end of 2023, they experienced a substantial drop this year in February and have continued to decline over the past four months. At the same time, the average used gas car price has shifted by approximately $400 during those same four months.
“It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable – and valuable – than traditional models,” said Brauer.
1- to 5-Year-Old Used EV Prices vs. Used Gas Car Prices – iSeeCars StudyMonthAverage Used EV PriceAverage Used Gas Car Price$ Price Difference% Price DifferenceMay 2024$28,767$31,424-$2,657-8.5%April 2024$29,066$31,391-$2,325-7.4%March 2024$29,925$31,015-$1,090-3.5%February 2024$30,904$31,169-$265-0.9%January 2024$33,275$31,689$1,5865.0%December 2023$33,572$29,789$3,78312.7%November 2023$34,275$30,116$4,15913.8%October 2023$34,994$30,906$4,08813.2%September 2023$34,926$31,147$3,77912.1%August 2023$36,161$31,446$4,71515.0%July 2023$38,797$32,251$6,54620.3%June 2023$40,916$32,715$8,20125.1%
Used Gas Car Prices Showing Stability
Demand for used gas cars grew during the new car production shortages brought on by the pandemic. This demand pressure is slowly easing, but with used prices hovering around $31,000 they remain well above pre-pandemic levels.
“Over the past year the average used price for traditional internal combustion engine vehicles has never shifted by more than 7 percent, with most months changing between 3 and 6 percent,” said Karl Brauer. “This is in stark contrast to the 30 to 40 percent drops in used EV pricing.”
Year-over-Year Change in 1- to 5-Year-Old Used Gas Car Prices – iSeeCars StudyMonthAverage Used Gas Car PriceYear-over-Year $ Price DifferenceYear-over-Year % Price DifferenceMay 2024$31,424-$2,045-6.1%April 2024$31,391-$1,722-5.2%March 2024$31,015-$1,374-4.2%February 2024$31,169-$1,004-3.1%January 2024$31,689-$696-2.1%December 2023$29,789-$959-3.1%November 2023$30,116-$1,328-4.2%October 2023$30,906-$1,475-4.6%September 2023$31,147-$2,029-6.1%August 2023$31,446-$2,384-7.0%July 2023$32,251-$1,829-5.4%June 2023$32,715-$1,128-3.3%
Used EV Prices Continue To Crash
The ongoing crash in used electric vehicle prices pulled their values below the average of used gas cars in February and shows no sign of stopping.
“While the drop in used EV prices is dramatic, what’s more disconcerting is no indication of used EV values stabilizing,” said Brauer. “At some point used EV prices will have to bottom out, but we don’t appear to be at that point yet.”
Year-over-Year Change in 1- to 5-Year-Old Used EV Prices – iSeeCars StudyMonthAverage Used EV PriceYear-over-Year $ Price DifferenceYear-over-Year % Price DifferenceMay 2024$28,767-$12,016-29.5%April 2024$29,066-$12,630-30.3%March 2024$29,925-$13,195-30.6%February 2024$30,904-$14,417-31.8%January 2024$33,275-$14,814-30.8%December 2023$33,572-$15,212-31.2%November 2023$34,275-$17,386-33.7%October 2023$34,994-$17,827-33.7%September 2023$34,926-$22,427-39.1%August 2023$36,161-$22,846-38.7%July 2023$38,797-$20,657-34.7%June 2023$40,916-$17,097-29.5%
Used Tesla Prices Fall Below BMW Prices
A specific example of how dropping used EV values compare to a traditional car can be seen when looking at BMW 3 Series and Tesla Model 3 prices over the past year. Both cars are compact luxury sedans with similar features. A used Tesla Model 3 was priced $2,635 above a BMW 3 Series in June 2023. By May 2024 the Model 3 was priced $4,806 below the 3 Series.
Used Prices of 1- to 5-Year-Old Tesla Model 3 and BMW 3 Series: June 2023 – May 2024 – iSeeCars StudyMonthTesla Model 3BMW 3 Series (sedan)% Price Difference$ Price DifferenceMay 2024$28,439$33,245-14.5%-$4,806April 2024$28,621$33,932-15.7%-$5,311March 2024$29,277$33,725-13.2%-$4,448February 2024$30,466$33,432-8.9%-$2,966January 2024$34,945$33,8623.2%$1,083December 2023$32,712$31,5393.7%$1,173November 2023$33,169$31,6274.9%$1,542October 2023$33,455$32,4953.0%$960September 2023$33,769$32,7083.2%$1,061August 2023$34,489$33,2413.8%$1,248July 2023$35,959$34,0005.8%$1,959June 2023$37,023$34,3887.7%$2,635
A similar trend can be seen between the Tesla Model Y and BMW X3, two competitive small SUVs. The Model Y had a $4,570 price premium over the X3 in January 2024, but that difference fell to only $175 by May 2024.
Used Prices of 1- to 5-Year-Old Tesla Model Y and BMW X3: January – May 2024 – iSeeCars StudyMonthTesla Model YBMW X3% Price Difference$ Price DifferenceMay 2024$34,734$34,5590.5%$175April 2024$34,959$34,4991.3%$460March 2024$35,245$33,7154.5%$1,530February 2024$37,174$34,1248.9%$3,050January 2024$39,502$34,93213.1%$4,570
EV Models Lead the Drop in Used Car Values
When ranking used cars by the biggest price drops over the past year, electric vehicles take up the first seven slots and make up eight of the top 10 models with the largest drops in pricing.
Top 10 Cars With the Biggest Year-over-Year Price Drops: May 2024 – iSeeCars StudyRankModelAverage Used PriceYear-over-Year $ Price DifferenceYear-over-Year % Price Difference1Jaguar I-PACE$32,651-$14,053-30.1%2Chevrolet Bolt EV$18,081-$7,041-28.0%3Hyundai Kona Electric$21,602-$7,780-26.5%4Kia Niro EV$22,893-$7,561-24.8%5Nissan LEAF$17,593-$5,546-24.0%6Tesla Model 3$28,439-$8,932-23.9%7Tesla Model X$59,296-$13,690-18.8%8Jaguar E-PACE$27,811-$5,658-16.9%9Tesla Model S$55,340-$10,399-15.8%10Maserati Levante$49,096-$8,991-15.5%Overall Average$31,368-$2,184-6.5%
Used Models Worth More Now Than a Year Ago
Luxury models dominate the list of used cars that have gone up in value over the past year. None of them are electric vehicles.
Top 10 Cars With the Biggest Year-over-Year Price Increases: May 2024 – iSeeCars StudyRankModelAverage Used PriceYear-over-Year $ Price DifferenceYear-over-Year % Price Difference1Porsche 718 Cayman$109,373$25,47030.4%2Genesis G90$53,939$7,96517.3%3Porsche 718 Boxster$94,431$9,31310.9%4BMW 5 Series (hybrid)$37,216$3,3359.8%5Volvo S90$36,701$3,2849.8%6Land Rover Range Rover$83,460$6,4508.4%7Mercedes-Benz CLA$34,633$2,1336.6%8BMW 4 Series$34,103$2,0936.5%9Mercedes-Benz E-Class (wagon)$69,413$4,1036.3%10Genesis G80$38,536$2,2206.1%Overall Average$31,368-$2,184-6.5%
“The used car market’s attitude toward electric vehicles shows a dramatic shift over the past year,” said Brauer. “With so many EVs entering the new car market in recent years, and then flowing into the used market, it suggests an over-supply condition that will continue as more EVs come off lease. Without a major catalyst to increase EV demand, used prices for these models will likely keep falling.”
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Methodology
iSeeCars analyzed over 2.2 million 1- to 5-year-old used cars sold in May 2023 and 2024. The average listing prices of each car model were compared between the two time periods, and the differences were expressed as both a percentage difference from the 2023 price as well as a dollar difference. Heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2023 model year, and vehicles in production for fewer than four of the last five model years for each period were excluded from further analysis.
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