Used EV Sales Surge Amid Increased Inventory
In July, the used electric vehicle (EV) market experienced a significant upswing, with sales soaring by over 10% compared to the previous year. This encouraging trend, highlighted in the latest EV Market Monitor Report from Cox Automotive, emphasizes the demand for used EVs amid rising gas prices and improved supply from leasing returns and trade-ins.
The Growing Popularity of Used EVs
Total used EV sales reached 36,810 in July, marking a 10.1% growth year-over-year and a notable 7.9% increase from June. It appears that consumers are increasingly drawn to used EVs, which are now viewed as a viable option, especially as traditional internal combustion engine vehicles experience higher fuel prices.
Brands such as Ford, which noted a remarkable 18.9% growth month-over-month, are starting to carve a significant slice of the used EV market, alongside Tesla, Chevrolet, Nissan, and Cadillac. High-performing models like the Tesla Model 3, Model Y, Ford Mustang Mach-E, and Hyundai IONIQ 5 are among the drivers of this growth.
Inventory Levels: A New Era for Used EVs
More used EVs are surfacing in the market, with the average days’ supply rising to 46 days. Notably, this is the first time since February that used EVs have had a higher days’ supply than their ICE counterparts, denoting a shift in market dynamics. Rivian displayed an impressive increase in supply days at 54, while Tesla hovered at the lower end with just 38 days. This reflects a growing availability that matched well with demand, as highlighted by Cox Automotive's Stephanie Valdez Streaty.
The Price Point Dilemma
Amidst rising sales, used EV prices also saw an uptick. July's data indicated an average listing price of $37,832, which is an 8.3% increase from a year prior. Interestingly, this figure is slightly lower than June's pricing. The price premium for used EVs over internal combustion engine vehicles narrowed, which may signal a shifting consumer mindset as more recent models, which generally command higher prices, enter the market. This aspect necessitates close observation as Cox Automotive foresees evolving pricing dynamics impacting sales going forward.
Looking Ahead: Trends and Insights
The continued growth of used EV sales amid improving inventory levels presents a burgeoning opportunity, but the industry must remain vigilant about changing consumer behaviors and rising competition. Valdez Streaty notes that declining incentives and new market dynamics will be crucial indicators for the months ahead.
For dealership owners and general managers, especially in the auto sales training segment, this momentum could provide actionable insights to better align their inventory with evolving customer preferences. Understanding the trends driving this market can help dealerships adapt quickly and strategically.
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