Sales of used electric vehicles in the United States rose 32% in the first three months of 2023 on the back of lower prices, data provider Cox Automotive said on Friday.
The group said the average retail price for used EVs was around $43,400, down 4% from the same quarter last year and significantly lower than the average price for used EVs. new EVs, which is around $59,000.
The group said used EV prices have likely been reduced due to Tesla’s aggressive price cuts for new vehicles.
“When the market leader drives down prices for new EVs, used vehicle prices follow suit,” Cox said.
On Thursday, Tesla slashed U.S. prices from 2% to nearly 6%, the fifth such cut this year. On April 18, Washington will pass stricter battery supply requirements, which will limit many EV tax credits.
In the first quarter of 2023, more than 225,000 EVs were sold, according to early estimates from Kelley Blue Book, representing about 7% of new vehicle sales.
On Monday, General Motors said it sold more than 20,000 EVs in the first three months of the year in the United States, a first. EVs accounted for about 3.4% of GM’s sales in the United States in the first quarter.
In August, Congress created a $4,000 tax credit for used EVs. Buyers must pick up a used EV for $25,000 or less from a dealer to qualify; the maximum credit is 30% of the sale price, up to a maximum of $4,000.
Adjusted gross income for used EV buyers must not exceed $75,000 for individuals or $150,000 for joint filers.
Cox Automotive this year forecast that sales of new EVs in the United States in 2023 will exceed one million units for the first time, up from around 807,000 last year, or 5.8% of all US sales.
Cox said used EV wholesale values were up 3.7% year over year, compared to the overall decline of 2.4%.
