Used Electric Cars Are Now Cheaper Than Their Gas-Powered Counterparts

⬤ New data shows that used electric vehicles now cost noticeably less than gasoline-powered cars.

⬤ Many of these EVs are relatively new and even come with remaining battery warranties, making them appealing options.

⬤ The growing demand for used EVs could hurt new car sales and push prices down further.

Used electric vehicles still represent a small portion of the overall market, but their prices have become increasingly attractive compared to traditional gasoline cars. Rapid improvements in battery range have driven down the value of older EV models, opening the door for more cost-conscious buyers to make the switch.

The used EV market is showing signs of rapid growth, creating a new level of affordability for consumers who previously saw electric cars as out of reach. Many used electric models are now selling for less than comparable gas-powered vehicles, reflecting the shifting price dynamics seen in the new car market.

According to Cox Automotive, sales of used electric cars in July rose 40 percent compared to the same month last year. The firm noted that while used EVs still account for only about 2 percent of total used car sales, more electric vehicles are now reaching the end of lease terms or being replaced by newer models, gradually increasing their numbers in the market.

Unlike new EVs, which have often carried price premiums of several thousand dollars over equivalent gas models, the used market has seen values drop sharply. The rapid pace of technological improvement, particularly in battery performance, has weighed heavily on resale prices.

Just a few years ago, many electric cars offered less than 340 kilometers of range per charge. Today, 500 kilometers has become the standard, and expectations of reaching 650 to 700 kilometers in the near future are reshaping consumer demand.

The introduction of new, more affordable EVs has also added pressure to the used market. Many automakers are now selling brand-new electric models for under 40,000 dollars, driving down the resale value of older ones. Tesla, long dominant in the segment, has seen particularly steep price drops as competition intensifies.

Another advantage of used EVs is that many are still relatively new and come with existing warranties, easing concerns about costly battery replacements. As a result, shoppers who were once hesitant about durability are finding new reasons to buy.

However, the increasing appeal of used EVs could also dampen demand for new electric vehicles which is a worrying sign for an industry once expected to grow rapidly but that has noticeably slowed in recent years.