A recent study by iSeeCars has revealed a remarkable shift in the used car market, with electric vehicles (EVs) experiencing a substantial decline in value compared to their gas-powered counterparts.
In May, the average price difference between used EVs and gas cars reached an all-time high of 8.5%, translating to a $2,657 difference. Used EVs were priced at $28,767 on average, while gas cars averaged $31,424.
This trend marks a drastic departure from June 2023, when used EVs commanded a 25% premium over gas-powered vehicles, with an average price difference of $8,000.
The study analyzed over 2.2 million used car sales from May 2023 and May 2024, revealing a steady decline in EV prices throughout 2023, followed by a slight increase in February.
Used gas cars have maintained a relatively stable price point, hovering around $31,000 for the past year with minimal fluctuation.
The Tesla Model 3 and BMW 3 Series exemplify this trend, with the Model 3’s price dropping from $2,635 more than the 3 Series in June 2023 to $4,806 less in May 2024.
The study also identified EVs as the top seven used cars with the most serious price drops over the past year, led by the Jaguar I-Pace with a 30.1% decline.
Sluggish sales, falling prices, and intensifying competition are contributing to the gloomy outlook for EVs, making it increasingly challenging for automakers to create profitable products that appeal to consumers. As resale values continue to plummet, potential buyers may be deterred from investing in EVs, viewing them as a risky gamble.