Cox Automotive’s market report for February showed that sales of used electric vehicles are still picking up speed despite a month-over-month downturn.
Compared to 2024, used EV sales boomed, climbing 34.2% to 24,875, which was down 4.7% month over month. Despite recent struggles with its sales, Tesla owned by far the largest share at 39.9%. That figure did decline by 9.2% month over month, but many Tesla drivers have been selling, as The New York Times recently reported, so the prices have been on the low side.
New EV sales were also down slightly from January but set a monthly record, with BMW, Rivian, and luxury brands in general standing out, per Cox.
The report highlighted the role of incentives, which help make EVs more affordable than their gas-powered counterparts, and incentive spending reached a high of 14.9% of the average new EV transaction price. The vehicles cost $7,718 more than internal combustion engine vehicles; used EVs were $4,923 costlier.
Buyers can score a $7,500 rebate from the federal government when purchasing a new EV; used EVs can get you $4,000. Some states and dealerships offer their own rebates as well, with Colorado and Maine matching the $7,500 federal subsidy, per CNET. Drivers can also expect to save $1,500 every year on gas and maintenance when switching to an EV.
Another reason the market is growing is that battery costs are plummeting, as Recurrent reported in a first-quarter assessment. The platform offers data and analysis on batteries and EVs and helps shoppers, owners, and dealers get the most out of used EVs. Its free service can help you monitor your EV’s battery health and connects sellers with dealers. On average, people make $1,400 more from their sales via Recurrent.
Importantly, Cox noted that 12 brands had used EV listing prices that were lower than their internal combustion engine models. The average cost of $38,057 marked a 1.8% month-over-month uptick and a year-over-year bump of 1.6%. Of the units sold, 39% came in at under $25,000.
The used EV days’ supply also decreased 21.5% year-over-year to 49 days, though it was up 5.9% from January.
“Last month, used EVs had a five-day lower supply than ICE+ vehicles,” Cox stated. “However, with ICE+ days’ supply declining by 6.5% month over month, the gap has now narrowed to just one day. The low days’ supply for EVs indicates a healthy and dynamic market driven by the increasing availability of more affordable options.”
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