![]() ![]() New Tesla price hikes in 2021 are causing used Tesla prices to soar.Used EV prices still higher than used ICE prices.It’s still a seller’s market for used EVs.A more recent, sixth price cut, is unlikely to change this. What we have seen, however, is that despite five rounds of price cuts to new Teslas in 2023 alone, they are holding their value better than most comparable cars in their sector. This may change the math for you if you’re trying to buy or sell a used Tesla, but it also means that there are a lot of new options for used EV shoppers. And, despite hitting impressive production targets in 2023, they are no longer the dominant force they once were in the used EV market. Reason to watch this: Tesla has long dominated the EV market for both new and used vehicles. What this does to the price of used Teslas over the next few years remains to be seen. Plus, it allows the company to control their own second hand sales. This keeps Teslas - still the lion's share of the overall EV market - from flooding the used market. No Model 3 and Model Y vehicles can be purchased at the end of the lease term, and in order to buy out a Model X or Model S, the car must have been purchased before April 15, 2022. The Bolt EV is also priced low enough that it’s very possible to find models that qualify for the $4000 used EV tax credit - more than half of listings currently are under the $25K price cap.Īnother issue is that Tesla has locked down lease buyouts. The Bolt EV retains its full credit of $7500 after the more stringent April 18 rules kick in, while Model 3s are eligible for either $7500 (for Performance trim) or $3750 (for RWD). Now, they have their eligibility restored and both qualify for federal credits. Why are we tracking these two models? Both had previously been excluded from the pre-IRA EV tax credits after meeting the old production cap. These two models have been queued up to see some excitement but, so far, have changed price less than the overall market. ![]() We look only at model years old enough to - theoretically - qualify for the used EV tax credit (2021 and earlier). The larger the share of inventory that falls under this price, the more likely that new EV drivers can find a car they love that meets their needs.įinally, the last two metrics that have stayed pretty much the same since last quarter are the prices of used Chevrolet Bolt EVs and Tesla Model 3s. However, the sub-$25K market is still relatively small compared to the number of shoppers who would benefit from it. Reason to watch this: Shoppers who want to take advantage of the first-ever federal incentives on used electric cars need to focus on vehicles priced near $25K. Prices may not change substantially for quite some time. What this means: If you’re relying on the used EV tax credit to get a new-to-you electric car in 2023, now is a good time to start doing your research on what models are available near you. We also look at vehicles priced under $30K since sometimes, deals can be had. Remember that the $25,000 is the magic number for vehicle eligibility with the used EV tax credit. The recent stability is important because while some wait for market lows to purchase or market highs to sell, many people look for signs of stability to ensure that their transaction will hold a predictable value over time.Īnother indicator that seems to have leveled out is the percentage of inventory priced under $25,000 and under $30,000. To remove the effect of outliers, we select a group of common used EVs and track how their prices change. Reason to watch this: The Recurrent Price Index is a way to simplify EV market trends over time. The models included in the 2023 Recurrent Price Index are: The chart above shows percent changes in the Recurrent Price Index, the price tracker for the used EV market segment which we have followed since April 2021. ![]()
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