Used EVs Cheaper Than Ever, Outselling New Models

Used EV Sales Surpass New, Except for Tesla Model Y.

Despite manufacturing hindrances and an electrical filling grid that regularly still requires considerable development, the second-hand electric motor vehicle sector is thriving. In the initial six months of 2023 utilized EV sales surpassed a great part of new EV purchases, as reported by latest market research from battery health and data innovator Recurrent.

The firm reports that in the initial six months of 2023, 140,000 used electric vehicles were bought in the US; an astounding figure that corresponds to more than the entire amount of newest Tesla Model 3s purchased during the same period. To put it in perspective, a grand total of 200,520 new Model Ys are estimated to have been procured in the initial half of 2023.

When we come to fresh EVs dispersed in the opening half of 2023, the Chevrolet Bolt takes second place with 33,659 cars bought, pursued by the Rivian R1T on 16,452 and the Volkswagen ID.4 with the same sum. Thus Tesla goes on to maintain supremacy throughout both the recycled and unused EV marketplace in the USA.

“The used EV market is booming, with sales now outstripping all new EV models apart from the Tesla Model Y and 3,” according to Recurrent’s latest analysis. Furthermore, “the affordability of used EVs is higher than it has been in the past 2.5 years, and the range of vehicles offered is more extensive than ever, with newer, longer-range models dominating the market.”

Consumers who are shopping for second-hand electric vehicles will be thrilled with the current news, as prices have hit their nadir since early 2021 and there is a higher availability. The normal cost of an employed EV in the US has dropped by 32 percent from this time a year ago and Tesla seems to be responsible for this plunge. Specifically, the average cost of a pre-owned Tesla Model 3 has gone down by more than $9,000 since the opening of 2021.

The used electric vehicle market has experienced remarkable growth in recent years. Over the last three years, the used EV inventory has grown dramatically, jumping from around 11,000 vehicles in April 2021 to over 33,000 today. Likewise, the portion of pure EVs in this lineup has also seen a steady rise, climbing from 55 percent at the beginning of 2021 to 73 percent presently. The remaining vehicles are plug-in hybrids.

Approximately thirty percent of pre-owned EVs may be eligible for a Federal Clean Vehicle Credit of up to four thousand dollars, and this process will soon be simplified considerably. Starting January 1st, 2024, vehicle purchasers will be able to assign the existing electric car credit to an automobile dealership instead of having to wait till their tax documents are in for the upcoming financial year.

Are you concerned that the most commonly owned electric vehicles are outdated and have lifeless batteries? That’s not necessarily true. Around 30 percent of these autos are not even two years old, while almost half are three years old or more recent. Granted, EV batteries do degrade with time but some car owners can still say that the rate of underperformance is minimal – even if their vehicles have achieved 100,000 miles.

Tesla’s chief executive Elon Musk declared on X that the company’s batteries boast a life expectancy ranging from 300,000 to 500,000 miles or 1500 charges. The majority of Model 3 and Model Y versions get a warranty period of eight years or 120,000 miles, depending on which milestone is achieved first, as long as the battery capacity remains greater than 70%. Various owners have recorded battery capacity that has exceeded 90% even after 100,000 miles.

The indicators demonstrate an optimistic outlook for the second-hand EV market in the US as they appear bound to become more affordable and reachable for a broad section of people in the upcoming months and years.

Source: Recurrent