Retail sales of used electric vehicle are on the rise and growing fast according to new data shared by Cox Automotive.
Used EV Sales On Rise
According to new Cox Automotive estimates, retail used EV sales increased by 32% year-over-year in the first quarter of 2023. Its experts say the market for EVs is starting to accelerate rapidly with more EVs becoming available.
“Every new vehicle eventually becomes a used vehicle,” said Jonathan Smoke, chief economist of Cox Automotive. “Our data sets indicate used EV sales will begin increasing rapidly from here, following a clear path set by new sales. In Q1, our team at Manheim processed a record number of used EVs in the wholesale market. This is an approaching challenge for the industry we’ve already begun to embrace, as placing a value on a used EV is a new set of skills we all need to develop and refine.”
Used EV Prices and Clean Used Vehicle Tax Credit
Cox Automotive also reports the used EV prices fell in the first quarter of 2023 with an average retail listing price for a used EV around $43,400. That's a drop of roughly 4% from the first quarter of 2022 and below the average new EV price, which Cox Automotive says is closer to $59,000.
(Also, don't forget about the IRS's new used EV clean vehicle credit tax guidelines. The credit equals 30% percent of the sale price up to a maximum credit of $4,000.)
AAA: Used EV Buyer’s Guide
If you're considering buying a used EV, you're not alone. Last year, an American Automobile Association survey revealed that 25 percent of consumers interested in electric vehicles would buy a used one, with Millennials (32%) the most likely to do so.
“A used EV could be a viable option for many first–time buyers or multi-car households, as they tend to be more affordable,“ said Greg Brannon, AAA‘s director of automotive research. “The key is to understand all the options available, as well as individual needs, which can ease some of the anxiety associated with purchasing.”
AAA's Used EV Buyer’s Guide highlights what shoppers should look for in a quality used electric vehicle. It provides basic information on electric vehicles (EVs) like ownership costs, details to consider before purchasing, and guidance for those who want an EV but need more affordable options.
What The Guide Offers: “A Pre-Shopping Checklist”
The guide offers a pre-shopping checklist with the following info:
- Basic background of electric vehicles
- Driving range and charging
- Used EV ownership cost comparisons (battery vs gas-powered)
- Repair and maintenance costs (batteries, tires, etc)
- Supplemental AAA Car Buying Resources
When it comes to ownership costs, the 2022 AAA Your Driving Cost analysis revealed that EVs have the second lowest annual ownership costs behind small sedans. Used EVs are also estimated to cost less to own than their gas-powered counterparts. Especially for consumers looking to save significantly on fuel costs – EV owners save $8,000 or more over five years in this area.
To check out AAA's Used EV Vehicle Buyer's guide click here →
Other AAA Resources
In addition, here are some other AAA resources to help navigate the car-buying decision.
- Your Driving Cost Online Calculator helps consumers determine important comparison costs before purchase. Select the desired state, annual mileage, and driving ratio representing your typical driving habits, and vehicle year/make/model & trim.
- AAA Car Guide provides reviews and ratings of select vehicles with the latest automotive technology, many of which are EVs. The Automobile Club of Southern California’s Automotive Research Center (ARC) tests and reviews vehicles annually.
-
Mobile EV Charging Pilot & AAA EV Member Benefits: AAA is also now offering a charging pilot in select cities. It's part of AAA's roadside assistance.
