Used Electric Vehicle Sales Surge in the US

U.S. used electric vehicle sales surged, with a 12% year-over-year increase and a 17% quarter-over-quarter increase in the first quarter of this year. This surge was primarily driven by gasoline prices exceeding $4 per gallon, high new car prices, and an influx of leased vehicles entering the market upon expiration. The average price of used electric vehicles fell 8.5% year-over-year, significantly narrowing the price gap with gasoline vehicles.

Tesla Dominates the Used Market

Market Share: Tesla Model 3 accounts for nearly 50% of used electric vehicle sales in the U.S., with approximately one in two transactions being a Tesla.

Consumer Feedback: Owners report that Model 3 overnight charging costs are below 30 cents, significantly reducing charging expenses.

Policy and Market Dynamics

Lease Vehicle Influx: The concentrated expiration of leased vehicles driven by the 2022 federal tax credit policy accelerated the supply of used cars.

Price Trends: Cox Research noted a “meaningful restart” in electric vehicle pricing, with dealers anticipating attracting more consumers.