Dec 2023

Electric Vehicle Used Vehicle Prices

Electric vehicles are having a difficult time holding their value in the used-vehicle market. Manheim Auction and Cox Automotive show that EVs have more than doubled their presence on the wholesale market in the last two years, however, the proceed have been disappointing.

According to Black Book, average three-year retention data shows that I.C.E. vehicle retain 66% of their value where their EV counterparts retain 49%. The weakness in value retention among EVs compared with other vehicles has grown in the past several months, and this is likely to continue with the “price wars” on new EV models, says Black Book Chief Data Scientist Alex Yurchenko. Black Book expected EVs of that age would keep 45% of value in October 2026. It also said comparing the future EV market to previous years was difficult “and probably useless” because of the more diverse mix of EV body types in the pipeline.

Price volatility in EVs might drive consumers to EV leasing. Leasing looks attractive — particularly when the lease is subverted by the electric vehicle tax credit and the manufacturers ability to lower vehicle prices thousands of dollars overnight.