Skepticism about electric cars has been eroding as more EVs have hit the streets, and nowhere is that more apparent than in the used-car market. According to Bloomberg, used EVs have posted a major sales surge through 2025:
Pre-owned electric cars and trucks in America are now almost as cheap as used gas-powered vehicles, on average, and are selling even faster, according to Cox Automotive…. What’s more, sales of used EVs this year through June increased by 34% over the year-earlier period, while the market for new EVs only ticked up a tad.
Bloomberg goes on to note that while the end of a $7,500 federal incentive this month is expected to curtail already sluggish new EV sales in the U.S., the loss of a maximum $4,000 credit on used EVs isn’t projected to have the same negative effect. That’s because used EVs and used gas-powered vehicles are closing in on price parity. A used EV at $34,700, Bloomberg reported, is about even with a used gas-burner at $33,800. The EV isn’t as old, nor is it likely to require as much maintenance going forward. What’s not to like?
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EV anxiety is easing
A Silver Chevy Bolt EV seen in side view parked on a city street – GM
Fears about EV ownership — ranging from range anxiety to concerns about the potentially high cost of replacing batteries — have obviously been eased by the sheer number of vehicles that have hit the road, validating the technology. Real-world experience has enhanced the reputations of EVs, batteries are lasting longer than originally anticipated, and the prices have become right.
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The appealing stickers on used EVs are of course not all a positive story. These vehicles are aggressively depreciating, establishing a buyer’s market for those interested in taking the plunge. Bloomberg cites a Ford Mustang Mach-E GT buyer who picked up a 2024 model for $33,000. Original price? $55,000. Of course, that degree of decline means that in the used market, complaints about EV affordability are being resolved. In fact, it almost makes more sense to hold off on a new EV purchase because, as Bloomberg reports, a lot of vehicles that were first leased three years ago are now hitting the market.
Do we need to worry about new EV supply?
A blue Chevy Blazer EV seen in rear three-quarter view while charging – GM
There is no used EV market without a new EV market, so a natural question to ask in the face of this relatively optimistic news is, “Will a collapse in sales and leasing of new EVs undermine growing used sales?” That will be something to keep an eye on over the next year or two. One might expect a reduced supply of new EVs coming into the used-car market to bid up prices, reversing or stalling the trend that Bloomberg noticed, sending buyers back to gas vehicles even if they want to give EVs a shot.
One other factor to take into account is that although the situation for new and used EVs is better than it was a decade ago, they still occupy a niche. Total EV sales in 2024 made up about 9% of the U.S. new-car market, according to Kelley Blue Book. New cars remain overwhelmingly powered by petrol, as do used cars. So why the probable convergence of prices for used gas and EV cars is certainly remarkable, it’s a modest milestone for now.
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