U.S. used electric vehicle sales surged recently as the September 30 deadline for the $7,500 federal EV tax credit puts the industry on high alert.
Used EV Sales Jumped 59% In August
Pre-owned EVs are almost as affordable as their ICE-driven counterparts, with the average transaction price for a used EV in the U.S. reaching $34,700, according to Bloomberg on Saturday. The same data suggests 40,960 used EV units were sold in August, up 22% month over month and 59% YoY.
“It was just a matter of time until people sort of started trusting used EVs enough to take the plunge and that would sort of have a ripple effect,” Liz Najman, a market insights expert at Recurrent, cited by Bloomberg, said in the report. EVs depreciate quickly due to consumers expecting expedited updates to vehicle technology when it comes to EVs, the report said.
Amazon’s Used Car Entry, Tesla Tops Carvana Charts
The news comes as Amazon.com Inc. (NASDAQ: AMZN) recently announced its foray into the used car sector, expanding into 68 markets after Amazon Autos arrived on the scene with an initial focus on new cars.
Meanwhile, Tesla Inc. (NASDAQ: TSLA) has topped the list of best-selling used EVs on the Carvana Co. (NYSE: CVNA) platform, with Carvana also saying that 1 in 10 used vehicles sold on their platform was an EV or a Plug-In Hybrid.
Elsewhere, Tesla also began offering $0 down leases on its used Model 3 and Model Y units in California and Texas with an annual 15,000 miles. While there isn’t a down payment, Tesla is charging an acquisition fee of $695.
Used Car Prices Surged Earlier This Year
Meanwhile, used car prices surged in the U.S. during June when the Manheim index, a metric used to track used car prices, surged 1.6% MoM and 6.3% YoY, the largest surge since 2022.
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