(iSeeCars) – In February, the prices of used electric vehicles dropped below the average prices of gasoline cars, and EVs have continued to diminish in value more quickly than typical used gas cars, as indicated by a new study from iSeeCars.
This study examined over 2.2 million used cars, aged between 1 to 5 years, which were sold in both May 2023 and 2024. It revealed that the average price for a used electric vehicle fell by 29.5 percent compared to the previous year, while the average price for a used gas car decreased by 6.1 percent. By May 2024, the average cost of a used electric vehicle stood at $28,767, which is 8.3 percent less than the $31,424 average price for a gas car. This represents a significant shift from a year prior when used EVs were priced at $40,783 and gas cars at $33,469.
Used Electric Vehicle Market Crashing
“The decline in the values of used electric vehicles over the past year is undeniable,” stated Karl Brauer, Executive Analyst at iSeeCars. “EV prices have dropped between 30 and 40 percent since June last year, while used gas car prices have only fallen by about 3 to 7 percent during the same period.”
While electric vehicle values appeared to stabilize at the end of 2023, they experienced a substantial drop in February this year and have continued to decline over the past four months. At the same time, the average used gas car price has shifted by approximately $400 during those same four months.
“It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable – and valuable – than traditional models,” said Brauer.
| 1- to 5-Year-Old Used EV Prices vs. Used Gas Car Prices – iSeeCars Study | ||||
|---|---|---|---|---|
| Month | Average Used EV Price | Average Used Gas Car Price | $ Price Difference | % Price Difference |
| May 2024 | $28,767 | $31,424 | -$2,657 | -8.5% |
| April 2024 | $29,066 | $31,391 | -$2,325 | -7.4% |
| March 2024 | $29,925 | $31,015 | -$1,090 | -3.5% |
| February 2024 | $30,904 | $31,169 | -$265 | -0.9% |
| January 2024 | $33,275 | $31,689 | $1,586 | 5.0% |
| December 2023 | $33,572 | $29,789 | $3,783 | 12.7% |
| November 2023 | $34,275 | $30,116 | $4,159 | 13.8% |
| October 2023 | $34,994 | $30,906 | $4,088 | 13.2% |
| September 2023 | $34,926 | $31,147 | $3,779 | 12.1% |
| August 2023 | $36,161 | $31,446 | $4,715 | 15.0% |
| July 2023 | $38,797 | $32,251 | $6,546 | 20.3% |
| June 2023 | $40,916 | $32,715 | $8,201 | 25.1% |
Used Gas Car Prices Showing Stability
Demand for used gas cars grew during the new car production shortages brought on by the pandemic. This demand pressure is slowly easing, but with used prices hovering around $31,000 they remain well above pre-pandemic levels.
“Over the past year the average used price for traditional internal combustion engine vehicles has never shifted by more than 7 percent, with most months changing between 3 and 6 percent,” said Karl Brauer. “This is in stark contrast to the 30 to 40 percent drops in used EV pricing.”
| Year-over-Year Change in 1- to 5-Year-Old Used Gas Car Prices – iSeeCars Study | |||
| Month | Average Used Gas Car Price | Year-over-Year $ Price Difference | Year-over-Year % Price Difference |
| May 2024 | $31,424 | -$2,045 | -6.1% |
| April 2024 | $31,391 | -$1,722 | -5.2% |
| March 2024 | $31,015 | -$1,374 | -4.2% |
| February 2024 | $31,169 | -$1,004 | -3.1% |
| January 2024 | $31,689 | -$696 | -2.1% |
| December 2023 | $29,789 | -$959 | -3.1% |
| November 2023 | $30,116 | -$1,328 | -4.2% |
| October 2023 | $30,906 | -$1,475 | -4.6% |
| September 2023 | $31,147 | -$2,029 | -6.1% |
| August 2023 | $31,446 | -$2,384 | -7.0% |
| July 2023 | $32,251 | -$1,829 | -5.4% |
| June 2023 | $32,715 | -$1,128 | -3.3% |
Used EV Prices Continue To Crash
The ongoing crash in used electric vehicle prices pulled their values below the average used gas cars in February and shows no sign of stopping.
“While the drop in used EV prices is dramatic, what’s more disconcerting is no indication of used EV values stabilizing,” said Brauer. “At some point used EV prices will have to bottom out, but we don’t appear to be at that point yet.”
| Year-over-Year Change in 1- to 5-Year-Old Used EV Prices – iSeeCars Study | |||
| Month | Average Used EV Price | Year-over-Year $ Price Difference | Year-over-Year % Price Difference |
| May 2024 | $28,767 | -$12,016 | -29.5% |
| April 2024 | $29,066 | -$12,630 | -30.3% |
| March 2024 | $29,925 | -$13,195 | -30.6% |
| February 2024 | $30,904 | -$14,417 | -31.8% |
| January 2024 | $33,275 | -$14,814 | -30.8% |
| December 2023 | $33,572 | -$15,212 | -31.2% |
| November 2023 | $34,275 | -$17,386 | -33.7% |
| October 2023 | $34,994 | -$17,827 | -33.7% |
| September 2023 | $34,926 | -$22,427 | -39.1% |
| August 2023 | $36,161 | -$22,846 | -38.7% |
| July 2023 | $38,797 | -$20,657 | -34.7% |
| June 2023 | $40,916 | -$17,097 | -29.5% |
EV Models Lead the Drop in Used Car Values
When ranking used cars by the biggest price drops over the past year, electric vehicles take up the first seven slots and make up eight of the top 10 models with the largest drops in pricing.
| Top 10 Cars With the Biggest Year-over-Year Price Drops: May 2024 – iSeeCars Study | ||||
| Rank | Model | Average Used Price | Year-over-Year $ Price Difference | Year-over-Year % Price Difference |
| 1 | Jaguar I-PACE | $32,651 | -$14,053 | -30.1% |
| 2 | Chevrolet Bolt EV | $18,081 | -$7,041 | -28.0% |
| 3 | Hyundai Kona Electric | $21,602 | -$7,780 | -26.5% |
| 4 | Kia Niro EV | $22,893 | -$7,561 | -24.8% |
| 5 | Nissan LEAF | $17,593 | -$5,546 | -24.0% |
| 6 | Tesla Model 3 | $28,439 | -$8,932 | -23.9% |
| 7 | Tesla Model X | $59,296 | -$13,690 | -18.8% |
| 8 | Jaguar E-PACE | $27,811 | -$5,658 | -16.9% |
| 9 | Tesla Model S | $55,340 | -$10,399 | -15.8% |
| 10 | Maserati Levante | $49,096 | -$8,991 | -15.5% |
| Overall Average | $31,368 | -$2,184 | -6.5% | |
Methodology
iSeeCars analyzed over 2.2 million 1- to 5-year-old used cars sold in May 2023 and 2024. The average listing prices of each car model were compared between the two time periods, and the differences were expressed as both a percentage difference from the 2023 price as well as a dollar difference. Heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2023 model year, and vehicles in production for fewer than four of the last five model years for each period were excluded from further analysis.
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About iSeeCars.com
iSeeCars.com is a data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resources, including the iSeeCars VIN Check report and Best Cars Rankings. iSeeCars has saved users over $439 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.
This article, Prices of Used EVs Drop Below Used Gas Cars for the First Time, originally appeared on iSeeCars.com.
