Used EV Sales Rise in the US Amid Fall in Prices: Report

Used electric vehicle sales in the United States rose 32 percent in the first three months of 2023 as prices fell, data provider Cox Automotive said on Friday.

The group said the average retail listing prices for used EVs was around $43,400 (nearly Rs. 35 lakh), down 4 percent from the same quarter last year and significantly below the average new EV price of about $59,000 (nearly Rs. 48 lakh).

The group said used EV prices were probably cut due to aggressive price reductions by Tesla for new vehicles.

“As the market leader pushes down prices for new EVs, used-vehicle prices follow suit,” Cox said.

On Thursday, Tesla cut prices in the United States between 2 percent and nearly 6 percent, the fifth such cut this year. Washington will adopt stricter battery sourcing requirements on April 18 that will limit many EV tax credits.

In the first quarter of 2023, more than 2,25,000 EVs were sold, according to initial estimates by Kelley Blue Book, accounting for approximately 7 percent of new-vehicle sales.

On Monday, General Motors said it sold more than 20,000 EVs in the first three months of the year in the United States, the first time it had done so. EVs accounted for about 3.4 percent of GM first quarter US sales.

In August, Congress created a $4,000 (nearly Rs. 3 lakh) used EV tax credit. Buyers must purchase a used EV for $25,000 (nearly Rs. 20 lakh) or less from a dealer to qualify; the maximum credit is 30 percent percent of the sale price up to $4,000.

Used EV buyers adjusted gross income may not exceed $75,000 (nearly Rs. 61 lakh) for individuals or $150,000 (nearly Rs. 1.22 crore) for joint filers.

Cox Automotive forecast this year sales of new EVs in the United States in 2023 will surpass 1 million units for the first time, up from about 807,000 last year or 5.8 percent of all US sales

Cox said wholesale values of used EVs increased by 3.7 percent year over year, compared to the overall decline of 2.4 percent.

© Thomson Reuters 2023