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A new study by iSeeCars shines a spotlight on plunging battery-electric vehicle values. The study concludes that battery-only vehicles have seem a 25% drop in values year over year. By contrast, hybrid-electric vehicles have held their value for the most part. This is not a new trend, but one that has now spanned many years.
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“The 25 percent drop in used electric vehicle prices over the past year remains several times higher than gasoline or hybrid cars,” said Karl Brauer, iSeeCars Executive Analyst. Mr. Brauert goes on to say, “The used car market clearly couldn’t support electric vehicles priced in the mid-to low-$30,000 range.”
Tesla’s Model 3 is the vehicle that has seen the highest individual price drop among all models and all types of vehicles. iSeeCars reports that the average value has fallen by $8,558 to an average sale price of under $26K. “The strength of the used car market means there are few deals to be found,” said Brauer. “But if you’re in the market for a Tesla Model 3, a small entry-level EV, or a luxury SUV from Land Rover, you can find much better prices than were available a year ago.”
Also in the list of vehicles that have lost the most value are the all-electric Kia Niro EV, Nissan Leaf, Hyundai Kona Electric, Bolt EV, Jaguar I-PACE, and Tesla Model S. There are no hybrid-electric vehicles in the top 15 vehicles that lost the most value. By contrast, the Mitsubishi Outlander plug-in hybrid-electric vehicle was one of the vehicles that saw the highest gain in value. Brauer connected on this, saying, “...the growing popularity in plug-in hybrids is likely pulling used Mitsubishi Outlander PHEV’s prices up.”
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Used hybrid-electric vehicle prices are down a bit, about 6% on average, similar to the trend for gasoline-powered vehicles. “The benefits of high fuel efficiency, low purchase cost, and zero range anxiety have kept hybrid demand strong,” said Brauer. “Automakers have seen growing consumer preference for hybrids over EVs in recent months and are planning to increase hybrid production in the next few years.” The study says that hybrid-electric vehicles “...show every indication of remaining near that price point for the foreseeable future.”
Here is how other outlets have described the used EV value crisis:
TFL Cars "Prices Continue to Crater"
Author's Analysis: I've been writing reviews praising battery-only vehicles for years. However, they are a bad value if purchased new, and they come with many compromises. If used properly, they make outstanding second cars or cars for folks who don't need to drive long distances frequently. My strongest advice to anyone interested in a battery-only vehicle is to lease, not buy.
To view the study in its entirety, visit iSeeCars.
Charts of used vehicle price changes courtesy of iSeeCars. Top of page image by John Goreham.
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John Goreham is an experienced New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. In addition to his eleven years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can connect with John on Linkedin and follow his work at our X channel. Please note that stories carrying John's by-line are never AI-generated, but he does employ Grammarly grammar and punctuation software when proofreading.
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