By Summer Ballentine, The Detroit News
Heavy discounts on new electric vehicles and buyer skepticism about their durability continue to push down used EV prices, which experts say has opened up a traditionally pricey market to more U.S. drivers.
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While new EVs on average cost $9,000 more than similar gas models, prices on used EVs now are competitive with their internal combustion counterparts at about $680 higher on average, Cox Automotive EV analyst Stephanie Valdez Streaty said: The used market “is one area where you can find affordable EVs.”
In September, the average transaction price for a new EV was $58,124, while the average listing price for a used EV was $34,575, according to Cox Automotive. The lower price tags could be key to winning over an unenthusiastic U.S. market, which has been further dampened by the Trump administration’s move to roll back greenhouse gas regulations and end federal EV tax credits.
“It’s important, because one of the biggest barriers for adoption is price,” Valdez Streaty said.
Retired Naples, Florida, resident Jon Peter Vollmer, 65, owns two used Chevrolet Bolts, including a 2020 model he bought earlier this year for $7,500. At the time of purchase, Vollmer said the Bolt had been driven 45,000 miles.
For comparison, Kelley Blue Book values a used 2020 Honda Civic sedan at about $14,000 and a 2020 Toyota Camry at roughly $15,000.
“The cost was so incredible,” Vollmer said. “They were much more cost-effective.”
It’s unclear how the loss of $7,500 tax credits for new EV buyers and lessees will impact new vehicle prices, and in turn used EV prices, analysts said. A credit of up-to-$4,000 for used EV purchases also expired Sept. 30, but other factors so far have meant steep depreciation for used battery-powered models.
“Some of the prices on used EVs are just nuts,” said Sam Abuelsamid, vice president of market research at Telemetry. “And so there are some really good deals to be had up there, and they may get a little bit better in the coming months. But they’re already pretty low, so they probably won’t drop too much more.”
Why are used EV prices so low?
Discounts on new EVs, the draw of new tech featured in new models, and lack of consumer confidence in the lifespan of EV batteries are top factors driving used values down, Valdez Streaty said in an email.
“Automakers are cutting prices and offering substantial lease incentives to stay competitive,” she said. “In many cases, a new EV — after discounts — costs less than a used one, which puts downward pressure on resale values.”
Issues with early model EV batteries also have lingered in buyers’ minds, analysts said, hurting used sales in particular. First-generation Nissan Leaf batteries degraded more quickly because they lacked pricier battery coolers, Abuelsamid said. He said 2026 Leaf models will have updated cooling systems — which many other EV brands have offered for years — that should help battery lifespan.
“Pretty much all of the other EVs, after 10 years they typically have at least around 90% of their original capacity,” Abuelsamid said. “Manufacturers, apart from Nissan with the first Leaf, they have been very careful with the thermal management of the battery, because what causes the battery degradation most of the time is overheating the battery.”
Battery life is “not really something that consumers should be worried about,” Abuelsamid said.
Consumer confidence in the durability of EVs and the longevity of their batteries — by far the most expensive component — likely will grow with time, Valdez Streaty said.
“When we’re able to show these batteries are really good and are going to last a long time, that’s going to help also with the depreciations of EVs,” she said.
How long will prices stay low?
Prices on used EVs will increase or decrease depending on demand and how new EVs are priced, analysts said. Demand rose in recent months, spurred by pull-ahead sales from buyers and lessees hoping to take advantage of the EV tax credit before it expired.
Used EV sales so far this year were up 76% as of September compared to the same time period last year, according to Valdez Streaty.
In response, used EV values also grew more than 6% in September compared to the same time last year, according to wholesale used vehicle auctioneer Manheim. Gas-powered vehicles saw a 1% hike in appreciation during the same period.
“The expiration of federal tax credits created a short-term demand spike that helped stabilize values,” Valdez Streaty said in an email.
“Consumers kept the pace of new and used EV purchases high over the quarter, prior to the expiration of the tax incentive,” said Jeremy Robb, deputy chief economist for Cox Automotive. “This heightened demand pushed EV wholesale values higher again (in September), making EVs the strongest-performing segment in year-over-year value appreciation.”
Moving forward, used EV prices will “depend a lot on how much automakers put prices on new EVs,” Abuelsamid said.
“If we see a bunch of price cuts, especially on existing models, that will hurt residual values,” Abuelsamid said. “So we may see some of the used EV prices start to come down, and that will help sales of those vehicles. EVs have always had, up until now, a lot of depreciation anyway, in part because the tax credits went to the new car buyers. Until the (Inflation Reduction Act) came along, there were no incentives for buying a used EV.
“And so the used EV prices were lower than a comparable gas vehicle. We may see those prices come down even a little bit more in the coming months if we see more price cuts on new EVs, but it probably won’t go down too much more than it is now,” Abuelsamid said.
Another dip in prices could be coming in a few years. More drivers opted to lease EVs beginning in 2023, when the Inflation Reduction Act made tax incentives available to lessees regardless of income. U.S. drivers have leased roughly 1.1 million EVs since 2023, Valdez Streaty said. As lease terms end in the next several years, those vehicles will flood the used market.
“The used EV market is very small right now,” said Cox Automotive spokesperson Mark Schirmer in an email, “but certainly growing as the new EV market grows. The real acceleration is coming, in 2027 and 2028, when a heavy load of leased EVs come back to market, something we will be watching carefully.”
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