USA: Prices of used EVs falling faster than used ICE cars

Buyer scepticism over battery longevity and national charging networks are some of the key challenges faced.

Brand-new EVs are still more expensive compared to their ICE-powered counterparts. However, in the used car market, things seem to be the other way around.

According to media reports, for the first time, prices of used EVs are quickly falling below that of used ICE models. As per reports, a recent study, which analysed prices of more than 2.2 million used cars in February, stated that EVs are losing their value much quicker than their counterpart ICE models.

The report states that EV prices fell by almost 30% year-over-year, nearly five times the rate of decline compared to ICE cars. Karl Brauer, an executive analyst, stated, "There’s no denying the crash in used electric vehicle values over the past year. We’ve watched EVs’ prices fall between 30 and 40 per cent since June of last year, while the average gas car’s price has dropped by just 3 to 7 per cent in that same timeframe."

The study also mentions that buyer scepticism over battery longevity and national charging networks are some of the key challenges faced by dealers while moving their used EVs. The report also states that electric powertrains themselves are considered a detractor, making them less desirable than the traditional ICE-powered models. Brauer stated, "It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable – and less valuable – than traditional models."

Source: Autoblog