If youâve been holding out for an electric vehicle (EV), it may be time to start shopping as secondary market demand has cooled and prices are plummeting. A recent study released by iSeeCars.comâa data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resourcesâreveals that used EV prices are down 33.7 percent while the average used combustion car price is only down 5.1 percent.
The iSeeCars research included an analysis of over 2.3 million new and 1- to 5-year-old used carsâboth evaluated to compare the EV market to other segments, including hybrids and traditional combustion vehicles.
High interest rates and an uncertain economy have stressed the entire automotive industry. Sales of new and pre-owned cars, trucks, and SUVs have slowed, and prices have begun to fall. âUsed car prices started to contract about midway through 2022,â explains Karl Brauer, iSeeCars executive analyst. âThe average used car price has stabilized around 5 percent below previous year levels, but used electric vehicle prices dropped much farther and faster, with EVs currently down more than 33 percent compared to a year ago.â
According to the iSeeCars data, new electric vehicles are taking nearly three times as long to sell compared to a year ago. Some manufacturers, such as Tesla, are seeing substantial price drops on used vehiclesâranging from a $21,775 decrease for the Model X to $18,596 for the Model S and $14,716 for the Model 3. (And itâs not just used vehicles, as the analytics company is reporting, âthree of the top 10 slowest-selling used cars are EVs, including the Kia EV6, Ford F-150 Lightning and Polestar 2.â)
EVs are facing a very challenging marketplace, as consumers worry about electric range, infrastructure, and even safety (for a full report, see 5 Reasons Why Electric Vehicle Sales Have Slowed). But thatâs not the case with hybrid models, which combine efficient combustion engines with electric motors to provide the best of both worlds. While some hybrid models offer limited electric-only range, none are forced to rely on a charging networkâand there is zero range anxiety. According to iSeeCars, âseven of the top 10 fastest-selling new cars are hybrids, including the Ford Maverick, Kia Sportage and Toyota Grand Highlander.â
Automotive trends tend to be cyclic, based on economic factors (e.g., fuel prices and interest rates) and whatâs in styleâretro 4x4s are cool today. But thereâs more to it with EVs, as the once-innovative powertrain appears to have lost its luster with buyers.
When will we see a resurgence of EVs? âElectric vehicles will have the same demand and value as gasoline cars when they offer the same features,â explains Brauer. âThat means hundreds of miles of range and the ability to ârefuelâ in 5-10 minutes. Until EVs offer those traits, they will not represent a desirable transportation option to most consumers.â