Regardless of manufacturing challenges and a charging community that usually nonetheless leaves quite a bit to be desired, the used electrical automotive market is booming. Used EV gross sales within the first half of 2023 surpassed nearly all of new EV gross sales, based on the most recent market report from battery well being and knowledge startup Recurrent.
The corporate reviews that within the first half of 2023, 140,000 used EVs have been offered within the U.S.; that is greater than even the whole variety of new Tesla Mannequin 3s that have been offered in the identical time interval should you can imagine it. For context, a complete of 200,520 new Mannequin Ys are believed to have been offered within the first half of 2023.
By way of different new EVs offered within the first six months of 2023, we have now the Chevrolet Bolt coming in subsequent at 33,659 items, adopted by the Rivian R1T at 16,452 items and the Volkswagen ID.4 at 16,448 items. In different phrases, Tesla remains to be dominating the used EV market in addition to the brand new one within the U.S.
“Used EV gross sales, as a section, now dwarf the gross sales of each new EV mannequin in addition to Tesla Mannequin Y and three,” Recurrent mentioned in its newest evaluation of the state of affairs. Furthermore, “the used EV market is extra reasonably priced than any time prior to now 2.5 years, whereas the combo of autos favors newer, longer-range fashions than ever earlier than.”
All of that is good information for shoppers trying to buy used EVs, as their costs are at their lowest for the reason that begin of 2021 and availability seems to be growing. The typical value of a used EV is now $27,800 within the US, falling 32 % year-over-year. And Tesla has possible influenced this development. The typical value of a used Tesla Mannequin 3 has decreased by greater than $9,000 since 2021.
A number of elements have contributed to the expansion of used EV gross sales. For starters, the used EV stock has grown threefold over the previous three years, growing from 11,000 autos in April 2021 to over 33,000 at present. The share of pure EVs on this stock has grown from 55 % in 2021 to 73 % at present. The remaining are plug-in hybrids.
New Tesla Mannequin Y gross sales exceed used EV gross sales quantity. Infographic: Recurrent Auto
Thirty % of used EVs additionally qualify for the $4,000 federal clear automobile credit score, and acquiring the credit score is about to turn out to be simpler. From Jan. 1, 2024, prospects will have the ability to switch EV credit to a automotive vendor, decreasing the automobile’s buy value as an alternative of ready until they file their tax returns the next 12 months.
When you’re fearful most used EVs are clunky outdated automobiles with degraded batteries, that’s in all probability not the case. Almost 30 % of automobiles on this stock are lower than two years outdated, and 45 % of used EVs are three years outdated or newer. Sure, EV batteries degrade over time, however some homeowners have reported how the degradation fee could be negligible, even after clocking over 100,000 miles.
Tesla CEO Elon Musk mentioned on X early this 12 months that Tesla batteries final between 300,000-500,000 miles or 1,500 cost cycles. Most Mannequin 3 and Mannequin Y variants get a guaranty of eight years or 120,000 miles, whichever comes first, supplied that the battery capability retention is over 70 % – many house owners have reported over 90 % of battery capability retention after 100,000 miles.
The developments point out a optimistic outlook for the used EV market within the US as they appear on observe to turn out to be extra reasonably priced and accessible to a broader section of the inhabitants within the coming months and years.