EVs Hit Range Limit as Hybrids Spark Demand

Highlights:

• Used EV prices are down 33.7 percent while the average used car price is only down 5.1 percent

• Teslas have had some of the biggest price drops for used cars, ranging from a $21,775 decrease for the Model X, $18,596 for the Model S and $14,716 for the Model 3

• New electric vehicles take almost three times as long to sell compared to a year ago

• Seven of the top 10 fastest-selling new cars are hybrids, including the Ford Maverick, Kia Sportage and Toyota Grand Highlander

• Three of the top 10 slowest selling used cars are EVs, including the Kia EV6, Ford F-150 Lightning and Polestar 2

Car prices and selling times have come off their pandemic-induced highs, with the average new and used car selling slower and at a lower price compared to a year ago. But used electric vehicle prices have fallen the most, down 33.7 percent compared to the 5.1 percent drop in overall average used car pricing and a 9.6 percent drop in the average used hybrid price. Electric vehicles are the slowest-selling segment of the used car market, further reflecting their drop in EV demand. 

iSeeCars analyzed over 2.3 million new and 1- to 5-year-old used cars to evaluate the market for EVs relative to other segments. The analysis compared EVs to hybrids and conventional fuel vehicles and found substantial weakness in measures of demand for EVs.

Used electric vehicle demand nosedives 

Used EV price reductions from a year ago are far outpacing the drops in price for gasoline and hybrid models, confirming a shift in demand throughout the used car market. 

Average used EV prices in October 2022 were over 60 percent higher than other used cars, at $52,821 compared to $32,627, but by 2023 they had dropped to within 13 percent, $34,994 compared to $30,972.

“Used car prices started to contract about midway through 2022,” said Karl Brauer, iSeeCars executive analyst. “The average used car price has stabilized around 5 percent below previous-year levels, but used electric vehicle prices dropped much farther and faster, with EVs currently down more than 33 percent compared to a year ago.”

Used car average days on market by segment

Despite their falling prices, used EVs are selling slower than gasoline or hybrid models. The average EV takes 52.4 days to sell versus 49.2 days for the average used car. A year ago, the average EV sold in 37.5 days, further reflecting a big drop in EV demand across the used car market.

“Even with massive price drops, electric vehicles are selling slower than gasoline and hybrid vehicles,” said Brauer. “This combination of lower prices and slower sales suggests EVs have hit a market demand threshold that will be difficult to break through. Everything from economic concerns to growing competition among electric vehicles is contributing to their downward trend.”

Three EVs in the Top 10 Slowest-Selling Used Cars

Luxury models dominate the slowest-selling used car list, but three electric cars also make the top 10 list for slow sales.

“Most of today’s slowest selling used cars are premium models or electric vehicles, with the Maserati Quattroporte, Kia EV6, and Jeep Grand Cherokee taking over twice as long to sell as the average used vehicle,” said Brauer. "The F-150 Lightning, Ford's electric truck based off the best-selling vehicle in the U.S., is also struggling to find buyers."

Three hybrids in the Top 10 Fastest-Selling Used Cars 

Hybrids and sports cars are among the fastest-selling used cars right now. The top-ranked BMW X5 hybrid’s average time to sell is 26.8 days, which is about twice as fast as the average for all used cars. One electric vehicle, Rivian’s R1T midsize truck also makes the list and is under the overall average at 35.5 days on market. Rivian's truck is produced in relatively limited quantities and still has strong demand.

“The fastest-selling used cars represent the dual nature of today’s car market,” said Brauer. “You have a large contingent of consumers looking to cut fuel costs, thus the popularity of hybrids. But you also have shoppers who aren’t – yet – feeling the crunch of higher interest rates and inflation and these buyers want something fun like a BMW M2 or Porsche 718 Boxster.”

Used EV average days on market: Teslas and the Chevrolet Bolt still selling quickly

When ranked by days on market, three of Tesla’s four models are selling faster than the 52.4 days it takes for the average electric vehicle to sell. The Model Y is selling fastest at 43.1 days, which is 10 days quicker than the languishing Model X at 53.3 days. The Chevrolet Bolt, Audi e-tron Sportback and Rivian R1T are also beating the average EV days on market.

“It’s ironic to see the Chevrolet Bolt among the fastest-selling electric vehicles just as GM is killing it,” said Brauer. “The Bolt has set a high bar for demand and value that the automaker’s next-generation of EVs must match as they come to market.”

Used cars with the biggest price drops: Electric vehicles lead the charge on falling prices

Five of the top 10 vehicles with the largest price drops are electric models, including the Nissan LEAF, three Teslas, and the Chevrolet Bolt, which are all down 25 percent or more. “Only Tesla’s Model Y doesn’t make the top 10 list for price drops, while its other three vehicles all make the top 5,” said Brauer. Two hybrids also saw big price reductions and, like the EVs in this list, are older models in need of a redesign.

“It’s common for old models to drop in price when the market contracts,” said Brauer.” Most of the models on this list were introduced several years ago and need a redesign to remain competitive.”

New car average days on market: Hybrids selling faster, EVs selling slower 

The new car data reflects the same market demand curve as used, with new hybrids selling faster than the average model and new electric cars selling slower. A year ago new EVs were leaving dealerships in just over 20 days. Now it takes 57.5 days, or almost three times as long, for the average electric vehicle to sell.

*Excluding Tesla