Used EVs Priced Below Gas Cars for the First Time

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Among the reasons Americans have yet to buy EVs in more significant numbers is price. It is common for EVs with long ranges to have an MSRP above $50,000. The average cost of a new car in the US is $46,000.

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Because of these high prices, Americans have started to hold on to cars longer. The average age of a car on the road today is 12.6 years. When Americans upgrade, they often buy used cars to keep out-of-pocket costs low.

For the first time, used EV car prices have dropped below those that run on gas engines. As fewer people buy EVs and the market becomes flooded, the supply/demand formula starts to work in the direction of the consumer. Karl Brauer, Executive Analyst at iSeeCars, commented. “We’ve watched EVs prices fall between 30 and 40 percent since June of last year, while the average gas car’s price has dropped by just 3 to 7 percent in that same timeframe.”

What Is A Better Used Car Value?

iSeeCars analyzed over 2.2 million 1- to 5-year-old used cars sold in May 2023 and 2024 and found that the average used EV price is down 29.5 percent year-over-year versus 6.1 percent for the average used gas car price. In May, the average EV price was $28,767. The average gas-powered car price was $31,424.

How long can the low EV used car price last? People may become unhappy with their EVs and trade them for gas cars, which wasn’t supposed to happen.