The used EV market is thriving in the United States with record sales and lower costs for buyers.
According to a new report by Cox Automotive, used EV sales were up 32 per cent in quarter one of 2023. This sales spike also means that used EVs now account for seven per cent of the total used market.
Per the same report, over 225,000 used EVs exchanged hands with an average price of $43,400. However, according to industry sources, this number is most likely lower.
Although there is no single indicator of why prices continue to drop in the used EV space, it looks like Tesla is at the heart of the drop. With the new prices for the Model 3 and Model Y, the used market has had to correct itself and drop pricing to match.
Depending on what you are looking for, the used market is ripe for picking in the US. However, it has been a little slower on this side of the border. The used EV space in Canada continues to lack inventory, leading to high costs for buyers. For instance, if you are looking for a used Tesla Model 3 under 100,000 km, you are looking at just under $40,000 for the vehicle. So, as the US market drops, we may see more dealers and buyers head south of the border to take advantage of the opportunities.