Used EV prices are plunging as off-lease cars flood the market

Used EV prices are falling as more off-lease electric vehicles return to the market, giving shoppers a more affordable way into models like the Tesla Model 3 and Chevrolet Bolt.

Just as many drivers are still seeking relief from high gas costs, Cox Automotive data show that a growing supply of preowned EVs is putting downward pressure on listing prices.

The wave of leased electric cars from the past few years is now landing on dealer lots, just in time to help drivers avoid the volatility of fuel prices.

Despite record-high sales of used EVs, some shoppers remain wary of EV battery longevity, range, and charging times, possibly making older models less appealing even if they remain practical for everyday driving.

Yet it is clear that lower used EV prices could make it much easier for drivers to get out of gas-powered vehicles without paying new-car prices.

In March, the average cost of new EVs was still quite high at $54,500, per Cox Automotive. The company also found that used EV listing prices were down more than 6% from a year earlier.

So even though inventory has been moving more quickly, used EVs spent an average of just 31 days on dealer lots in March, and prices continued to slide because supply stayed high.

For many households, a lower-priced used EV could bring lower fuel and maintenance costs without the premium of a brand-new electric vehicle. As EVs also do not produce tailpipe pollution, driving one can help lower asthma-worsening pollution in the communities people live in.

Still, these savings will not look the same for everyone. Buyers who owe more on their current vehicle than it is worth may have a harder time coming out ahead. For people who already drive hybrids or plug-in hybrids, opting for a used EV may yield a smaller fuel-cost reduction.

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