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What do we want? Affordable cars! When do we want them? YESTERDAY. Covid threw a wrench into the automobile market by creating massive delays, leading to limited inventory, and skyrocketing prices. Now used cars are finally getting cheaper, but that means trouble for used electric vehicles. 

Used car prices are dropping as used EVs struggle 

For the past few years, car prices have been insane due to limited inventory levels. Covid caused massive production delays for new vehicles, causing people to scoop up used ones instead. 

As a result, prices increased to impossible levels and people were stuck with whatever ride they had. But now things are finally turning back around. 

Used vehicles have dropped in value by about 6.8% year-over-year. Prices hovered around an average of $29,742 in the second quarter of 2023 and $27,472 in the second quarter of 2024.

Used trucks, SUVs, and cars were sitting on dealership lots for an average of 34 days in 2023, and that has extended to a whole 35 days in 2024. 

While this is good news for gas-powered vehicles because things can get moving again, used electric vehicles are struggling to sell and owners have to deal with negative equity. 

The 2024 Ford Mustang Mach-E off-roading
2024 Ford Mustang Mach-E | Ford

The average transaction price for a used EV was $42,482 in the second quarter of 2023 and it dropped to $33,787 in the second quarter of 2024 for a 20.5% year-over-year decrease. 

New EVs, especially Tesla models, already have declining sales. This trend could mean that the future of EVs is shaky as people favor gas-powered cars and hybrids even when it could be cheaper to get a used electric vehicle. 

Higher prices for EVs used to equal higher resale values, but heavy depreciation is taking a toll. Automakers are struggling to make EVs affordable because they’re so expensive to produce. 

As a result, most options are premium with luxurious amenities to attract buyers, but the prices are too expensive for average drivers. 

People may go for used cars that are more expensive than an EV due to range anxiety, reliability concerns, and not wanting to lose out on their investment.

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Staff Writer

Allison Barfield

Allison Barfield joined MotorBiscuit in 2020 and covers all things trucks, SUVs, and Jeeps. Having grown up on a farm in Rock Hill, South Carolina, she’s no stranger to the “Best in Class” truck and SUV debates; people in her hometown were always gathering to help work on vehicles together, and deliberation would naturally arise.

Allison graduated from the University of South Carolina with a degree in Media Arts. She has helped bring awareness to issues Women In Trucking face and has promoted Truckers Against Trafficking, an anti-trafficking NGO.

A fan of creatively dark literature, Allison appreciates the works of Shirley Jackson and Emily Dickenson. She lives in a mountainous area of the country and enjoys off-roading and camping. Her dog, Bruce, often joins her in testing trucks and SUVs for our site.