Dan Niles, founder and portfolio manager of Niles Investment Management, unlocks the outlook for electric vehicle companies with Claman Countdown.
Used car shoppers can get electric vehicles (EVs) deals as new reports point out that EV prices have fallen last year and second-hand Tesla prices have fallen more than other brands.
a Studying with ISEECARS Last year, the average price for 1-5-year-old user cars fell slightly, down 0.8%, which would result in a price drop of $239 as of February.
In contrast, used EV prices have fallen 15.1% over the past year, representing a price drop of $5,709. This continues to trend backwards for the past six months, with EVs used falling from 15% to 20%.
Of the various brands surveyed, used Tesla vehicles saw the largest average price drop from the previous year, down $5,013, or 13.6%. This is a few percentage points larger than the top five biggest price drops, surpassing Maserati (10.6%), Chrysler (7.6%), Chevrolet (6.5%) and Genesis (4.8%).
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Tesla saw the biggest price drop for used cars in its ISEECARS study. (Jeff Gritchen/Medianews Group/Orange County Register by Getty Images/Getty Images)
“Some mainstream and premium brands have had a massive used car price drop in terms of percentage over the past year,” said Karl Blauer, executive analyst at ISEECARS. “But only Tesla and Maserati have lost more than $5,000 in dollar value.”
Of the used EV models analyzed in this study, the Porscheteikan had the lowest price drop, dropping 26.5% to an average price of $73,976. The used Tesla model ranked second and third, with the Model S price down 16.2% to $49,366, while the Model Y price down 15.9% to $31,247.
“Electric car shoppers looking for cars under $25,000 have several options, including Nissan Leaf, which averages under $17,000,” Brower said.
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Other used EVs, which are based on the average threshold of $25,000, have fallen 13.4% in price, followed by Hyundai Kona $20,329 and Kia Niro $21,758 after a 12.3% decline. The Tesla Model 3 is close to that level, with an average price of $26,354 after a 13.5% drop.
Both gas-powered used and hybrid vehicles experienced far more price stability than used EVs over the past year, and a very conservative decline was observed in this study.
The average price of hybrid vehicles in use has dropped by just 0.5% from a year ago, with an average price dropping by $156 to $29,881. The used internal combustion engine vehicle showed a 0.5% drop in price compared to last year, down $153 to $31,281.
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“It's not easy to find a big deal in today's used car market,” Brower said. “However, if an electric vehicle can meet your personal transport needs, most second-hand models have significantly reduced costs over the past year, especially compared to gas and hybrid models.”
