Explosive Growth in Used EV Sales
If America’s appetite for electric vehicles seems to be hitting a wall, the used EV market tells a different story. Preliminary estimates from Cox Automotive indicate that Americans are on track to purchase more than 100,000 secondhand electric vehicles (EVs) in the second quarter alone. This surge represents an impressive 27% increase from the first quarter and a striking 45% year-on-year growth. As uncertainty looms over new EV sales and overall consumer demand, the thriving used market shines as a beacon of hope.
Rising Supply and Demand
But what’s driving this rapid expansion in the used EV segment? Primarily, it can be attributed to an increase in available inventory. As more electric cars enter the used market—thanks in part to the leasing loophole that encourages EV leasing—shoppers now have greater options. “The supply of high-quality, affordable, pre-owned EVs is growing rapidly,” says Stephanie Valdez Streaty from Cox. The influx of nearly-new Tesla Model 3s and Model Ys highlights the evolving landscape, where budget-conscious consumers can now enjoy reliable, feature-rich vehicles without breaking the bank.
Affordability Drives Consumer Interest
Another driving force in the used EV market is the significant cost advantage over new models. While the average price of a new EV hovers around $58,000, used EVs are more accessible. For instance, a 1-to-5-year-old electric vehicle may be listed at about ,000, with popular models like the Tesla Model 3 available for around ,160. The incentivization offered through tax credits further sweetens the deal, making ownership of used EVs an appealing option for those wary of the substantial upfront cost associated with new electric vehicles.
