Prices For Used EVs Continue to Rise as Gas Cars Drop
The global microchip shortage caused used car prices to skyrocket. With new cars in short supply at dealerships, consumers looking for a vehicle decided to purchase a used car, sending demand and prices for used cars up. While things began to cool off for gas-powered cars during the second half of 2022, prices for electric vehicles actually went in the opposite direction.
Used EVs Overtake Gas Cars
In a recent analysis conducted by iSeeCars, the organization looked at used cars sold between January and July of 2021 and compared them to used cars sold during the same period in 2022. The organization analyzed the prices for over 13.8 million used cars that were between one to five years old. The findings were interesting.
Compared to last January, electric vehicles started off 2022 with a price increase of 54.1 percent. Prices for a conventional gas-powered car was 36 percent higher in 2022 than it was in 2021. Fast forward to July, and the price increase for EVs was 54.3 percent, while it was just 10.1 percent for gas cars. The year-over-year price change for EVs didn't dip below 34.3 percent, while gas-powered cars fell as low as 9.8 percent.
The information is peculiar, because used electric vehicles tend to depreciate far more than conventional gas-powered cars. That clearly wasn't the case in 2022. "Until recently, mainstream electric vehicles typically depreciated rapidly due to improvements in battery technology and a lack of demand in the secondary market," said iSeeCars Executive Analyst Karl Brauer. "However, soaring gas prices, improvements in public charging infrastructure, and a lack of inventory for new EVs have led to soaring demand for used electric vehicles."
High Fuel Prices Are Partly To Blame
Fuel costs played a large role in the increase in pricing for EVs, as the large price increase for fuel drove consumers to EVs, though they weren't able to find any on dealer lots. That sent them toward the used market. "March marked the aggressive upward pricing trend for gasoline as a result of the Russia-Ukraine conflict, and we have seen increased demand for EVs and decreased demand for gas-powered cars since," said Brauer.
On the used market, consumers will find that the Nissan Leaf had the highest year-over-year price increase when you compare July 2022 to July 2021. Nissan's affordable EV increased 45 percent compared to last year. The Chevrolet Bolt EV (29.3 percent), Tesla Model S (27.5 percent), Tesla Model X (19.7 percent), and Tesla Model 3 (19.7 percent) were in the top five for having the largest price increases.
Consumers looking for a vehicle to save money on fuel should consider a hybrid. As iSeeCars points out, prices for hybrids increased as demand for them spiked in January. But unlike EVs, prices for hybrids have followed a similar trajectory as traditional gas-powered vehicles.
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