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The average price of used vehicles in the US is increasing in most segments, but not as much as the electric vehicle. Once determined by their depreciation, rising gas prices are now pushing the value of used EVs ever higher.
That’s according to iSeeCars.com, which analyzed the prices of nearly 14 million used vehicles that were one to five years old. It found that in July, the average price for EVs rose 54.3 percent year-over-year compared to combustion engine vehicles, whose average price was just 10.1 percent.
“Until recently, mainstream electric vehicles were typically quickly depreciated due to improvements in battery technology and a lack of demand in the secondary market,” said iSeeCars Executive Analyst Karl Brauer. “However, rising gas prices, improvements in public charging infrastructure and a lack of inventory for new EVs have led to rising demand for used electric vehicles.”
Also read: Bet You Can’t Guess the Three Most Wanted Used Vehicles in America
Prices of both EVs and conventional fuel vehicles both rose at the start of the year, but increases for both started to slow in February and March. However, the Russian invasion of Ukraine caused gas prices to rise, driving up the value of used EVs and slowing the growth of internal combustion engine vehicles.
In terms of specific vehicles, the biggest gain in the used market was the Nissan LEAF, which sold for an average of $28,787 in July 2022. That was a 45 percent year-over-year increase, or $8,930, from 2021.
The Chevrolet Bolt, meanwhile, was the most affordable used EV on the road in July 2022, with an average price increase of 29.3 percent to $28,291. All four Tesla models also saw prices rise, led by the Model S.
The Porsche Taycan was the only EV whose used values fell in July 2022, with prices dropping $5,042 to $138,033. That equates to a decrease of 3.5 percent. As EVs become more mainstream and a used vehicle tax incentive is introduced, this may not be the pinnacle for the used EV market.
“More and more affordable new electric vehicles are hitting the market, which means used EVs won’t be as new, especially if supply chain issues start to improve,” Brauer said. “While potential used car buyers will see significant price increases for EVs in the near term, it is important to be patient as used EV prices are expected to fall in the coming months.”
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