Used electric vehicle sales in the United States rose 32% in the first three months of 2023 as prices fell, data provider Cox Automotive said on Friday.
According to the group, the average retail listing price for used EVs was around $43,400, a 4% decrease from the same quarter last year and significantly lower than the average new EV price of around $59,000.
The group said used EV prices were probably cut due to aggressive price reductions by Tesla (TSLA.O) for new vehicles.
“As the market leader reduces prices for new EVs, used-vehicle prices fall,” Cox explained.
Tesla cut prices in the United States by 2% to nearly 6% on Thursday, the fifth such cut this year. On April 18, Washington will implement stricter battery sourcing requirements, which will limit many EV tax credits.
According to preliminary estimates from Kelley Blue Book, more than 225,000 EVs were sold in the first quarter of 2023, accounting for approximately 7% of new-vehicle sales.
On Monday, General Motors (GM.N) said it sold more than 20,000 EVs in the first three months of the year in the United States, the first time it had done so. EVs accounted for approximately 3.4% of GM’s first-quarter US sales.
Congress established a $4,000 used EV tax credit in August. To qualify, buyers must purchase a used EV from a dealer for $25,000 or less; the maximum credit is 30% of the sale price up to $4,000.
The adjusted gross income of used EV buyers cannot exceed $75,000 for individuals or $150,000 for joint filers.
Cox Automotive predicts that new EV sales in the United States will exceed 1 million units for the first time in 2023, up from about 807,000 last year, or 5.8% of total U.S. sales.
According to Cox, wholesale values of used EVs increased by 3.7% year over year, compared to a 2.4% overall decline.
