By Steven Symes 
As further evidence there’s been a general turning away from EVs by Americans, prices for used electric cars keep falling. You might think it’s a great time to buy one, but most people wouldn’t agree.
Ford has recalled 850,000 vehicles for engines that suddenly stall out.
While prices for used gas cars increased 5.2 percent in the past year, they dropped 4.8 percent for used EVs, according to iSeeCars. That might not sound like a lot, but this comes after prices have been rapidly decreasing for a while.
iSeeCars Executive Analyst Karl Brauer believes with federal incentives to purchase electric cars going away in September, we’ll see prices deflate even more. It’s almost like pumping money into the EV market was just making everything more expensive, dispelling the myth that the incentives were helping with affordability.
In its analysis of market data, iSeeCars concluded out of all the vehicle manufacturers, Teslas have taken the biggest hit in the used market. The average used Model X has decreased $9,544 in price over a year. For the Model S it’s $8,768 and 42,958 for the Model 3.
With people feeling the pinch of inflation and feeling uncertain about what the economy is going to do next, you would think they’d be scooping up the cheap EVs. But even with all the price deflation, used car shoppers are avoiding them and going with more traditional gas-powered vehicles for one solid reason: perception of value.
“Used car shoppers focus, first and foremost, on value. For them, used EVs offer about $1,200 less in value than a gasoline vehicle – and while you can love or hate the market, you can’t argue with it,” said Bauer.
There are many financial concerns people have about used EVs. But one of the biggest is the potential cost of replacing the battery. Most people by now know that’s a tremendous expense, so as an electric car ages, that’s a ticking financial bomb which could devastate their finances.
As a result, the supply of used EVs just keeps growing. That means prices will likely keep falling, although for how long is anyone’s guess at this point.
Check out the iSeeCars study for yourself here.
Image via Daniel Christian/Facebook Marketplace
Shawn Henry
Our company prepares diminished value appraisals and valuation appraisals for total loss disputes. Tesla cars are still holding their values, especially those that have been upgraded, with newer batteries, etc.