The latest data on electric vehicle sales depicted a discouraging scenario, particularly for new EVs. In the first quarter, sales of new electric vehicles dropped by about 28% compared to the previous year, due to the Trump administration’s elimination of the $7,500 consumer tax credit, as per Cox Automotive.
In contrast, used EVs are seeing an upward trend, fueled by several factors.
Used EV sales rose 12% in the first quarter compared to the same period last year, according to Cox Automotive. They also saw a 17% increase between the fourth and first quarters.
The rising gas prices, averaging over $4 a gallon, have boosted the interest and sale of electric vehicles. Another contributing factor is the availability of expired leases, as reported by the Financial Times. Many EV leases from the early 2020s have expired, flooding the market with pre-owned EVs that consumers are eager to purchase.
By the end of the year, EVs are expected to constitute 15% of all off-lease vehicles, doubling from the previous 7.7% in the first quarter, according to the FT.
Supply-and-demand economics remain relevant; the influx of pre-owned vehicles has lowered prices, further increasing sales. This has resulted in price parity — or near parity — with internal combustion vehicles. Cox Automotive notes that the average price of a used EV is $34,821, while it’s $33,487 for a gasoline-powered equivalent.
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