Used electric vehicle (EV) prices have now fallen below those of comparable gasoline vehicles, reversing the usual pricing trend, driven by rapid technological improvements and more affordable new models.

Advancements in battery technology have increased EV range from under 200 miles to around 300 miles, with expectations of reaching 400 miles, making older models more attractive and positively impacting resale values.

In 2024, used EV prices dropped by 30-39% year-over-year, compared to only a 3-7% decline for gas cars, with the average used EV costing about $28,767 in May, versus $31,424 for used gas vehicles.

Federal tax credits of up to $4,000 are available for qualifying used EVs priced under $25,000, significantly reducing the effective purchase price, though these incentives are set to expire at the end of September, creating a sense of urgency.

A notable 34% of used EV inventory is priced below $25,000, allowing buyers to benefit from tax credits and lower costs, making EVs more accessible.

Many used EVs are relatively new, often under warranty, and less than five years old, with 45% from 2023 or later, which reduces concerns over battery replacement costs and boosts consumer confidence.

The used EV market is experiencing rapid growth, with sales increasing 40% in July compared to the previous year, and a 50% rise in inventory, providing consumers with a wider selection than ever.

Despite the growth, EVs still account for only about 2% of total used-car sales, but their popularity is rising as prices become more attractive.

This favorable market condition is temporary, as federal incentives may expire soon, so prospective buyers are encouraged to act quickly while the opportunity persists.

The declining prices of used EVs are influencing consumer behavior, with some preferring pre-owned models over new due to better prices, and brand loyalty or political considerations also affecting brand choices, especially as Tesla owners explore other brands.