Market Reports, News

THE average price of a used electric vehicle fell below used ICE cars for the first time in the US in February as ICE prices stabilised and EVs continue to tumble, according to data from iSeeCars.

While the data is for the US where the EV market is much more mature than in Australia, it perhaps contains a message that can be of benefit for Australasian industry players as they come to grips with the electric vehicle sector.

The iSeeCars survey of 2.2 million used vehicles aged one to five years, conducted from June 2023 to May 2024, found that EV prices are down an average of 29.5 per cent. By contrast, ICE car prices are down 6.1 per cent.  iSeeCars reported that while EV prices in the US appeared to stabilise at the end of 2023, they had a substantial drop this year in February and have continued to decline over the past four months. 

iSeeCars executive analyst Karl Brauer said: “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 ICE car’s price has dropped by just 3 to 7 per cent in that same timeframe.”

The data indicates that EVs may continue to fall in price. 

Mr Brauer said: “While the drop in used EV prices is dramatic, what’s more disconcerting is there is no indication of used EV values stabilising.

“At some point used EV prices will have to bottom out, but we don’t appear to be at that point yet.”

He said that the used car market’s attitude toward electric vehicles shows a dramatic shift over the past year.

“With so many EVs entering the new car market in recent years, and then flowing into the used market, it suggests an over-supply condition that will continue as more EVs come off lease,” he said.

“Without a major catalyst to increase EV demand, used prices for these models will likely keep falling.”iSeeCars listed the car models in the US with the largest price drops over the past year. In that list, EVs take up the first seven slots and make up eight of the top 10 models.

The Jaguar i-Pace had the biggest price fall, down 30.1 per cent in a year or $US14,053 in the 12 months to May 2024. It was followed by the Chevrolet Bolt (down 28 per cent); Hyundai Kona Electric (down 26.5 per cent), Kia Niro EV (down 24.8 per cent) and the Nissan Leaf (down 24 per cent).

Three Teslas were in the Top 10, with the Model 3 down 23.9 per cent; the Model X down 18.8 per cent; and the Model S down 15.8 per cent.

The first ICE in the list was the Jaguar E-Pace, down 16.9 per cent, with the only other ICE in the list being the Maserati Levante, down 15.5 per cent.

Meanwhile, luxury models dominated the US list of used cars that have gone up in value over the past year. None of them are electric vehicles.

The best improver was the Porsche 718 Cayman at 30.4 per cent, with the 718 Boxster third at 10.9 per cent. The Porsche’s sandwiched the Genesis G90 (up 17.3 per cent).

The next five were the Volvo S90 (up 9.8 per cent); Range Rover (up 8.4 per cent); Mercedes CLA (up 6.6 per cent); Mercedes E-Class wagon (up 6.3 per cent); and Genesis G80 (up 6.1 per cent).

By Neil Dowling

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