The most recent electric vehicle sales data provided a grim picture — at least for new EVs. Sales of new electric vehicles took a beating in the first quarter, falling some 28% year-over-year after the Trump administration axed the $7,500 consumer tax credit, according to Cox Automotive.
Used EVs are moving in the opposite direction. And a couple of accelerants have combined to supercharge those sales.
First-quarter used EV sales increased 12% compared with the same quarter last year, according to that same Cox Automotive report. There’s a bit of momentum over a shorter term too; used EV sales popped 17% between the fourth and first quarters.
The rising cost of gas — the average price is above $4 a gallon — has helped spur interest and sales of electric vehicles. But there’s another factor at play here as consumers seek out affordable options: an abundance of expiring leases, the Financial Times reported. EV leases were a popular choice in the early 2020s, and now that they’ve expired, hundreds of thousands of pre-owned EVs are entering the marketplace. And consumers are ready for them.
By the end of the year, EVs will account for 15% of all off-lease vehicles, double from 7.7% in the first quarter, the FT reported.
The ol’ economic principle of supply and demand remained steadfast; the surge of pre-owned vehicles helped push prices lower, giving those sales a further boost. That’s led to price parity — or close to it — with internal combustion vehicles. According to Cox Automotive, the average price of a used EV is $34,821 compared to $33,487 for the gas engine equivalent.
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