The high price tag of EVs can deter many new buyers. As a result, the used EV Market is starting to resonate with people, offering an affordable and eco-friendly alternative to traditional gas-powered vehicles.
The IRA has messed up more things than it has solved, especially the tax credit that EV buyers were getting. The kind of restrictions put in place has made it tougher for a lot of middle-class folks to help contribute to the clean and green revolution by getting an EV.
However, their goal has not changed, just the way to achieve it. People are now taking more and more interest in getting used to EVs since new ones are starting to get unaffordable.
Tesla is the EV leader in the US and it is still being forced to slash its prices and it’s again all thanks to new tax credits.
Believe it or not, a small EV price war is happening amongst the newer EVs and simultaneously there are an increased number of older EVs available on the road today than there ever have been so far. Put together these two issues are making life difficult for newer EVs as far as attracting customers is concerned.
The used EV market is starting to resonate with people and the reason is that they have more choices with older vehicles today than they had before. Also, it has made owning an EV affordable.
Back in the day, even a used Tesla was almost as costly as a new one. People were convinced EVs won’t get damaged so early on but that perception seems to be dying down as the used EV market continues to grow in 2023.
Data provider Cox Automotive suggests that the sale of used EVs in the US has risen by 32% in the first three months of 2023 as the prices for the same have gone down.
The average price of a used EV is down by 4% to 43,400 dollars as compared to the same quarter last year. This is also further away from the new EV average price of 59k dollars.
It is being reported that the prices of used EVs are coming down because Tesla is reducing the prices of their new EVs. Since used EVs are cheaper it is only a matter of time before the new EVs will face full-fledged competition from the older EVs.
Even when opting to get a used EV it is better to consult a tax professional to help find out if you qualify for used tax credit or not. Whatever might be the case it seems that the EV industry is finally thriving and growing into its ecosystem.