If you’re ready to buy a used car you may be happy to know that prices have come down from their all-time highs. But unless you plan to buy an electric vehicle (EV), the savings might not be that great.
Used vehicle prices are down anywhere from 2% to 7% over the last 12 months, but the average is being pulled down by plunging EV prices – primarily, the price of a used Tesla. An analysis by iSeeCars.com found EV prices are down nearly 32% in the last 12 months.
Put another way, consumers who purchased a new EV a year ago are very likely underwater on their car loan since the vehicle may have lost a third of its value.
That’s also something to keep in mind if you are thinking about buying one of these vehicles. While it might seem like a good deal there is no guarantee the vehicle won’t lose even more of its value at a rapid pace.
“Used car shoppers are seeing a bit of a break in vehicle costs, but we’re still well above the pre-pandemic average used car price point of roughly $20,000, with no indication we’re going back to those levels any time soon,” said Karl Brauer, iSeeCars’ executive analyst. “A dramatic drop in used electric vehicle values, largely driven by Elon Musk’s aggressive price cuts on new Teslas, reflects how much influence Tesla continues to have on the EV market.”
Falling demand equals falling prices
But another factor may also have influenced the price cuts. Demand for EVs has declined so both new and used car dealers have to reduce the price to sell them.
The iSeeCars analysis found that the average used car is now priced at $31,153, a 3.6% decline, or $1,161 drop, since last year. While used hybrid vehicles are down about twice that rate, at 6.5% or $2,135, electric vehicles have experienced a far more dramatic drop, losing 31.8% of their value, which equates to $14,418.
Used Teslas, making up the bulk of the used EV market, have declined in price by 28.9%. The only brands to enjoy slightly higher EV prices over the last 12 months are Chevrolet, GMC and Porsche.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-03-15 11:34:25
