The latest electric vehicle sales data shows a bleak picture, at least for new EVs. According to Cox Automotive, sales of new electric vehicles in the first quarter fell by about 28% from a year earlier, a significant drop after the Trump administration ended the $7,500 consumer tax credit.
Used EVs are moving in the opposite direction. And a combination of several accelerators boosted those sales significantly.
According to the same Cox Automotive report, used EV sales rose 12% in the first quarter compared to the same period last year. There is some momentum in the short term. Used EV sales increased 17% between Q4 and Q1.
Rising gas prices (the average price is more than $4 per gallon) are spurring interest in and sales of electric vehicles. But there are other factors at play here, as consumers seek affordable options, the Financial Times reported. EV leasing was a popular option in the early 2020s, but now that it’s expired, there are hundreds of thousands of used EVs on the market. And consumers are ready to accept them.
By the end of the year, EVs will account for 15% of all unleased vehicles, doubling from 7.7% in the first quarter, the FT reported.
The old economic principles of supply and demand remained strong. The rapid increase in the number of used cars brought down prices and further increased sales. As a result, prices are now comparable to, or close to, those of internal combustion engine vehicles. According to Cox Automotive, the average price for a used EV is $34,821, compared to $33,487 for a gas-powered equivalent.
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