According to data provider Cox Automotive, used EV sales in the United States increased 32% in the first three months of 2023 as costs decreased.
According to the association, the average retail listing price for used EVs was roughly $43,400, which is much less than the average new EV pricing of nearly $59,000 and a decrease of 4% from the same quarter last year.
The association claimed that aggressive price cuts by Tesla for new vehicles were likely to blame for the decrease in used EV prices.
“As the market leader pushes down prices for new EVs, used-vehicle prices follow suit,” Cox said.
Thursday was the seventh time this year that Tesla has reduced pricing in the United States by between 2 and nearly 6 percent. On April 18, Washington will establish stricter battery sourcing guidelines that will reduce the amount of EV tax credits available.
According to preliminary projections by Kelley Blue Book, more over 2,25,000 EVs were sold in the first quarter of 2023, making up around 7% of new-vehicle sales.
For the first time ever, General Motors reported selling more than 20,000 electric vehicles in the first three months of the year in the United States. About 3.4 percent of GM’s first quarter US sales were electric vehicles.
Congress established a $4,000 used EV tax credit in August. The maximum credit is 30% of the transaction price up to $4,000 for buyers who buy a used EV from a dealer for less than $25,000.
Adjusted gross income for used EV buyers cannot be more than $75,000 for single taxpayers and $150,000 for joint filers.
In 2023, Cox Automotive predicts that new EV sales in the US will reach 1 million units for the first time, up from roughly 807,000 units last year or 5.8% of all US sales.
In contrast to the overall fall of 2.4 percent, Cox said that wholesale values of used EVs climbed by 3.7 percent year over year.