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    Used Electric Vehicles Experience Record Price Drops in 2024, Surpassing Gasoline Cars in Depreciation Rates

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    Enfield Electric Car” by pyoorkate is licensed under CC BY-NC-SA 2.0

    Used car prices have started becoming more reasonable after a prolonged period of high values and limited inventory. However, some vehicles are losing value more quickly than others, with electric vehicles (EVs) leading the race to the bottom, as per a recent study by iSeeCars, an automotive data analyst.

    The study provides an insightful look into the current state of the used car market, particularly highlighting the stark difference in depreciation rates between used EVs and their gasoline counterparts.

    The automotive data outfit found that on average, used electric models saw their values plummet by almost 32 percent over the past year, while used gasoline vehicle prices dipped by just 3.6 percent.

    To put this into perspective, in February 2024, the price drop for used EVs was recorded at 31.8 percent, making a stark contrast to the rest of the automotive market.

    This is a significant revelation, especially considering the considerable consumer interest in EVs as an alternative to traditional gas-powered vehicles.

    Tesla, a heavyweight in the EV industry, has played a substantial role in this trend, with the company’s aggressive price cuts setting the pace for the market.

    “Elon’s desire to maintain new Tesla sales through price cuts had a very destructive impact on the brand’s residual values,” noted Karl Brauer, iSeeCars’ executive analyst.

    Tesla Model S” by cdorobek is licensed under CC BY 2.0

    This strategy led to four of the most significant price drops in the overall used market between 2023 and 2024 being attributed to Tesla vehicles.

    Porsche 718 Cayman S” by 8000vueltas is licensed under CC BY-NC-ND 2.0

    On the opposite end of the spectrum, several brands, primarily within the performance and premium segments, saw their vehicle values increase. For instance, the Porsche 718 Cayman experienced a price hike of 29.4 percent, while the BMW 5-Series Hybrid and Volvo S90 saw their prices jump by 18.7 and 13.9 percent respectively.

    Porsche 718 Cayman” by Alexandre Prevot is licensed under CC BY-SA 2.0

    This trend underscores the distinct market dynamics where affluent buyers continue to drive up prices for select models regardless of broader market tendencies.

    IAA 2017: Chevrolet Bolt EV” by harry_nl is licensed under CC BY-NC-SA 2.0

    iSeeCars’ study also detailed the magnitude of depreciation among various EV models. The Chevrolet Bolt EV, for example, suffered a 30.4 percent drop, while the Nissan Leaf and Kia Niro EV followed with significant declines of their own.

    0 Chevrolet Bolt EV” by Benespit is licensed under CC BY-SA 4.0

    What stands out is that, despite the massive price drops, the average cost of a used gas-powered model, hybrid, and EV have all settled around the $31,000 mark. This represents a drastic change from February 2023, when used EVs were priced much higher, on average, at $45,321.

    However, Brauer points out that the average used car price is still substantially higher than the pre-pandemic average of roughly $20,000, offering no immediate hope of returning to those levels.

    While EV prices are seeing signs of stabilization, the current market offers an advantageous opportunity for potential buyers who may be considering an electric vehicle.

    With price points becoming increasingly similar across different powertrains, the choice for consumers expands to preferences over price. Nonetheless, it’s important to note that the larger context of used car pricing is still significantly affected by the economic aftermath of the pandemic.

    Relevant articles:
    Used EV prices fall much faster than gas cars, according to iSeeCars
    Used EV Prices Plummet 32% As Tesla Price Cuts Impact Industry, CarScoops, Mon, 11 Mar 2024 23:06:14 GMT
    Used EVs depreciate 10x faster than gas-powered cars, study says, Spectrum News 1, Mon, 11 Mar 2024 17:16:00 GMT
    Used EV Prices Plummet As Hybrids Hold Strong, Forbes, Thu, 30 Nov 2023 08:00:00 GMT

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