Price Update: Used EV Market

Falling used car prices in Q1 2024 may trigger sticker shock for EV owners checking their resale value. On the other hand, these affordable prices are great news for the many Americans who are looking to use their tax refund for a shiny new (to them) electric car. 

Kate Harrison, Co-Founder of MoveEV, explains how falling prices help EV adoption:

“Consumers still list high EV prices as the #1 roadblock for adoption. As prices become more competitive with traditional gas cars, we should see continued uptick in consumer demand. This trend, supported by an increasing number of models falling below the $25k used vehicle tax credit threshold, not only makes EVs more accessible but also amplifies the opportunity for mainstream adoption. It's a clear indicator that EVs are transitioning from a niche market to a mainstream choice for Americans.”

Our data backs up Kate’s intuition. Based on a record high number of tax credit eligibility checks, it seems like many drivers are looking for an electric bargain this season. Since used EVs must be priced below $25,000 in order to claim the tax credit, falling prices mean that electric cars are becoming accessible to a whole new demographic of buyers who rely on incentives and point-of-sale rebates to go electric. 

Examples of used EV prices falling in recent months
Two used EV price examples from recent months

On the theme of falling prices, we find that the Recurrent Price Index, which tracks the prices of popular EV models, settled to $23,787 this month – a decline of 27% year over year.

Plotted alongside the Recurrent Price Index are price trends for several used Tesla models. You can see that used Tesla prices track with - or perhaps drive - the overall used EV market trends: 

  • 2+ year old Model 3s have fallen 27% year over year
  • 2+ year old Model Ys have fallen 31% year over year
  • 2+ year old Model Ss have fallen 32% year over year
Used electric vehicle prices in the US from 2023 and 2024

On the falling prices for the Model 3, Jimmy Douglas, Founder & CEO of EV auction wholesaler Plug, notes:

“A used Model 3 that is totally accessible to the masses and will result in so many people behind the wheel of an EV every day that otherwise would have been priced out of that reality. With a very affordable and amazing product, coupled with Inflation Reduction Act money on the hood, the pool of dealers who specialize in used EVs is finally starting to grow.” 

The models currently included in the 2023 Recurrent Price Index are:

Tax Credit Eligibility

Recurrent has been closely following the share of used EV listings that are eligible for the federal used clean vehicle credit. While the percentage of vehicles listed under $30,000 has skyrocketed to 55%, the percentage of vehicles under $25,000 has held constant at around 30% for several months. This can mean one or both of the following:

  1. price and demand for EVs under $25K has hit an equilibrium; and/or, 
  2. vehicles priced under $25K are selling quickly, while vehicles above that threshold seem to be piling up.

In either case we can expect demand to rise, as Scott Case forecasts, “based on the offers we’re seeing through dealers in our Sell with Recurrent platform.“ He adds that, “by the end of the quarter, used EV prices will stabilize.”

But for now, dealerships are cashing in on these used bargains. 

Alex Lawrence, at EV Auto dealership in Utah, announced a record sales month in February thanks to these under $25K “tax cars,” adding that, 

“Falling prices mean adoption is going to increase pretty dramatically as long as supply can keep up. The demand for used EV’s under the $25K tax cap is going to continue to intensify. 

In terms of tax credit eligibility, 70% of EVs on the road are 2022 or earlier. Over 83% of used EV listings are 2022 or earlier. But, the supply of “tax cars” will present its own issues as demand grows. As Alex continues, 

I believe the consumer will have to accept higher and higher mile EV’s to stay under [the price] limit as supply isn’t unlimited for 2 year old plus EV’s that meet the tax credit criteria. The biggest concern customers have with these higher mile EV’s at the sub $25K price is the impact on battery health and warranty.  The short answer is these batteries (both under legitimate study and anecdotally) are lasting much longer than anyone predicted, so the concerns about longevity are largely unfounded.“

Recurrent Reports are designed to help dealerships understand and answer questions about used EV range and warranties. In the last 2 years, Recurrent has scored 290,000 unique used EV VINs across our dealer, marketplace and auction clients. It's nearly 50% of the market of dealer-sold used EVs.

55% of used EVs qualify for a federal tax credit in 2024

It’s important to note that as of 2024, tax credit eligible sales must go through dealerships registered with the IRS. Unfortunately, many dealerships have been slow to support the point-of-sale rebate on EVs, despite the easy sales opportunity it presents. Recurrent maintains a list of verified dealerships for EV shoppers.

That has created an incredible opportunity for other dealerships, like Easterns Automotive Group in Maryland and Virginia, and EV Auto in Utah. Both have used the federal tax credits (and Recurrent Reports) to boost sales.

Car dealerships are selling more electric cars

In fact, inexpensive electric cars are not limited to the used market. Looking at the new EV market, 60% of tax credit eligible models are priced below the average sale price for a gas car!

Things to watch: Price parity 

Thanks to the falling cost of lithium and battery packs, along with the industry shift to more affordable EVs, Recurrent predicts that the average price of new electric vehicles will reach parity with the average price across the overall auto industry by the end of 2024. This will continue to accelerate demand for electric cars.

As of December 31, 2023, the average price for a new EV was just $2000 more than the average price of a gas car. When you look at tax credit eligible EVs, the average price after rebate is only $45,500 – $3000 less than a new gas car.

For instance, these new EV models are all less than than the average new gas car:

  • Chrysler Pacifica PHEV - $46,120 after tax credit
  • Volkswagen ID.4 - $31,495 - $40,295 after tax credit
  • Chevrolet Bolt EV - $19,000 after tax credit

A lot of new EVs are now less expensive than the average new gas powered car!

After tax credit EV prices are now less than gas cars

Announcing: Best Used EV of 2024

It promises to be a big year for used EV sales, with a 100% increase in sales volume from 2022 and a 40% increase from 2023. The federal used EV tax credit is now available for some of the most sought after and reliable EVs money can buy. There are over 3 million EVs on the road and 70% of them are model years from 2022 or earlier - meaning that they may qualify for the Used EV Tax Credit. This is exciting news since the tax credit can now be used as a point of sale rebate or credit at the dealership. 

As the industry leader in used EV analysis and market trends, it’s time for Recurrent to crown a “Best Used EV” for 2024. And with plummeting prices and great range, it’s no surprise that we chose… this car as the Best Used EV 2024.

About this data

The data in Recurrent’s quarterly reports comes from our partner, Marketcheck. This month, we also feature wholesale pricing from BlackBook. 

Previous Reports

Each quarter we publish a new report with the latest industry data. Browse this section to review previous reports and their findings.

Q4 2023 Report

  • The average listing price of a used Tesla Model 3 has fallen below $30,000 for 2017 to 2019 vehicles, putting roughly 300,000 used EVs within reach of a federal rebate. 
  • Tesla may also be incentivized to slash prices again on some new models since it is expected that many new Model 3 vehicles will no longer receive a new-car EV tax credit in 2024. 
  • Used EV sales volume in 2024 will increase by roughly 100% over 2022 and 40% over 2023. 
  • Only 7% of U.S. car dealerships have taken steps to register for time-of-sale rebates, which could make it difficult for buyers to capture the instant savings.
Used Tesla prices fall from 2022 peak

Q4 2023 Report

  • Used EV sales, as a segment, now dwarf the sales of every new EV model besides Tesla Model Y and 3.
  • The Recurrent Price Index, which tracks the overall used EV market pricing, has fallen 32% year-over-year to an average of $27,800 -- a level last seen in early 2021. 
  • Nearly 30% of used EVs now qualify for $4000 clean vehicle credit, just ahead of point-of-sale rebate regulations, beginning January 1.

Q3 2023 Report

  • Used EV prices continue to fall, with nearly 40% of inventory is under $30K
  • If you’re looking for a specific make or model of used EV, where you look matters. Here are states that have the most inventory by brand. 
  • Used Teslas hold their value – but not last year’s models. Tesla continues to drive down its own prices in a bid to capture market share, accelerating one-year depreciation. 

Q2 2023

  • After two years of wild ups and downs, used EV prices are settling almost exactly where they were in April 2021. However, an influx of newer model-year vehicles into the second hand market keeps the average price market-wide around $38,000
  • Used Teslas hold value better than most luxury cars despite five rounds - and counting - of price cuts to the full lineup since January.
  • Metro areas with rapidly growing used EV markets share many characteristics: average commutes under 30 minutes, median age under 40 and median income in the mid-to-high $70K
Average Three Year Depreciation

Q1 2023

  • Used EV Market Triples in Size - the number of electric cars in inventory is not just a measure of a growing market. It also can indicate that vehicles are sitting longer on dealer lots, as a result of higher interest rates. 
  • Recurrent Price Index has fallen 17% from its July 2022 peak, driven by falling prices in the used Chevy Bolt and Tesla Model 3
  • The number of used EVs that are potentially eligible for a tax credit is up 30%
line chart showing the monthly inventory of dealer listings for used EVs

Q4 2022

  • Used EV prices are beginning to decline, albeit, slowly
  • Only 12% of used EVs would qualify for a used car tax credit today
  • Used plug-in hybrids will dominate tax credit eligibility early in the year
  • Market data suggests that 2017 and older model year EVs are most likely to be eligible for used EV tax credits in 2023

Q3 2022 Report

According to our inventory data, derived from over 50,000 car dealers, roughly one third of the estimated 158,689 total EV sales in Q1 2022 were used cars – official Q2 numbers are still pending. In fact, after new Tesla sales, used EVs make up the second largest portion of EV purchases.

Some other quick stats before we dive into the theme of the quarter:

  • The average price of used EVs in July 2022 was $40,714, well above the newly proposed $25,000 used EV tax credit limit.
  • 17.9% of used EV sales in the past 90 days were under $25,000.
  • The average minimum listing price for used EVs that Recurrent tracks (including lots of like-new 2022 "used" cars) is $29,400.

Read more about the Rise of the Used EV.

Q2 2022 Report

  • Higher used EV prices are the new normal
  • The rise of the "new" used car
  • Chevy Bolt battery replacements prove that calendar age matters
  • The Tesla Model 3 takeover is here
Electric vehicles appreciating between 2022 and 2021

Q1 2022 Report

  • It’s still a seller’s market for used EVs
  • Used EV prices are continuing to rise
  • Used EV prices still higher than used ICE prices
  • New Tesla price hikes in 2021 are causing used Tesla prices to soar
  • People are talking a lot about Tesla battery replacements

Q3 2021 Report

  • Compares climbing used EV prices to all used cars
  • Revisits the state of the used EV market six months after our first report
  • Determines the percent of used EV values below an important $25,000 price point
  • Monitors a significant contraction in used EV inventory by state

In July, both Recurrent sales data and national analyses suggested that used car prices were starting to level off. The past two months of price data is further evidence that the market has stabilized. For used EVs, we saw a 2.32% price increase in from July to August, and a 0.39% increase going into September. Meanwhile, the overall used car price index saw a decline of 1.5% from August to September, meaning that used EVs pricing outpaced the used combustion engine market. We will continue to track this trend after this year of anomalous pricing.

Despite the used car market leveling off, the ongoing semiconductor shortage is still affecting US automakers. Last week, GM announced that most US production would pause after Labor Day, and many other auto manufacturers foresee temporary layoffs and production slow downs. This suggests that although used EV prices may have stabilized, they will not go back down to pre-summer levels anytime soon. An EV can require ten times more semiconductors than an ICE car, so expect electric inventory to remain limited as buyers looking for new EVs compete with buyers in the used markets.

Our methodology to calculate the used EV price index is to use a representative sample of popular vehicles and compare national averages for retail prices. The models we included in our bundle are: 2017 BMW i3, Chevy Bolt, Tesla Model S; 2018 BMW 530e, Honda Clarity, 2018 Nissan LEAF; 2019 Audi e-tron, Tesla Model 3, VW e-Golf.

In March, Recurrent released its first used EV buying guide to highlight the growth of the market and report on trends that were not being covered by other automotive sources. Six months later, we have seen meteoric price increases, drastic inventory contractions, and a shift in what model years are most popular in inventory.

As of September 2021, over 48% of all used EVs in the US are under $25,000 and nearly 30% are under $20,000. The $20-$25K price range is the target for auto manufacturers looking to produce a mass market EV to win over everyday, budget-conscious drivers, as rumors of a Tesla Model 2 or Volkswagen ID.2 suggest. New EVs available for around $25K will inject the used market with a supply of reliable electric cars priced around $10-$15K in a few years, and attract new drivers to the electric market.

As reported in March, there had been an almost 50% increase in used EV inventory since summer 2020. However, since that report, the inventory number has dropped 21% despite a modest increase in the last 2 months. Supply has dropped at least 35% in top EV states since March. Both Oregon and Virginia lost over 63% of their inventory in six months. The only state that remained near constant was Tennessee, losing only a handful of total inventory since March. These numbers are consistent with the overall used car market, which saw unprecedented low inventory this summer.

Refreshing the used EV stock has been incredibly difficult with inventory shortages around the country, and dealerships are struggling to find cars to sell. This inventory shortage has several causes.

In part, it is due to the global semiconductor shortage, which is causing significant production delays in new cars. That has pushed shoppers to consider the used market. Since EVs require ten times the number of semiconductors as ICE cars, this is a strong effect in the used EV market.

Secondly, the market is still reeling from the pandemic: dealerships that initially scaled down their supply or offered deep discounts to move cars off their lots are now scrambling to replenish a fleeting inventory that is not being filled by rental car sellers or fleet vehicle turnover.

We can expect inventory to remain very tight through the end of 2021.

August 2021 Report

July 2021 Report

  • Used electric car retail prices in June continued to climb, but at a slightly slower pace, which could indicate the beginning of a market equilibrium being reached.
  • We looked at different brands to determine the most popular EV by state. Overall, Tesla continues to be the most popular used electric car brand, with 26% of the used market nationally.
  • The Chevy Bolt and Tesla Model 3 are two of the most popular all-electric vehicles on the road today. We did a Bolt vs Model 3 comparison to learn how their individual battery is aging across makes, models, years and climates.

June 2021 Report

  • Chevy Volt has found its way to the top of the used electric list by selling more than any other EV model. Combined with new Bolt sales in 2021, GM is having a very big year. Although there could be a surge in Model 3 inventory soon.
  • Used EV prices are still climbing. We recorded another 9% increase in average prices over the last 30 days.
  • Used Teslas sell faster than any other used EV. We reviewed the number of vehicle sales for various brands compared to the number in dealer inventory to arrive at a relative proxy of used car turnover. Tesla is way ahead.

May 2021 Report

  • Used EV prices have been soaring by $1000’s over the last few months -- driven up by high demand and the same chip shortages that are hindering the new vehicle market.
  • There’s incredible price volatility from state to state. We’re seeing $3000 - $6000 price differences for the same vehicles across state lines.
  • The used Tesla ecosystem is such a big part of the overall used EV market that it makes sense to look at how that’s evolving. itself is a player, but it only represents 7% of the used Tesla inventory, a far cry from its complete control of new Tesla sales.

State by State Pricing Shows Huge Variability for Popular EV Models

Like many things, used EV prices vary from state to state. There isn’t a hard and fast rule about where EVs are more expensive, including the biggest EV states like California, but there is a very wide range in the prices for popular models state to state. It’s common to see a $5,000 spread between the least and most expensive states.

Drilling into the Used Tesla Market: Lots of Choices

Does the direct-to-consumer sales model hold for pre-owned Teslas? We found that only 7% of today’s used Tesla listings are on

April 2021 Report

  • From last month, the overall trend in the used EV market is a decrease in inventory - in particular, GMs, Teslas, and Fiats are being bought up faster than their stock can be replenished. Dealerships across the country are noting inventory shortages on used vehicles in general -- as an indirect result of slower-than-expected new vehicle manufacturing.
  • Despite these recent decreases, March inventory is still 37% higher than July 2020 signaling increased interest in used EVs.
  • 2018 models have now surpassed 2017 models as the most popular used EVs on the market.

BMW Leads Used EV Market

Last month, we saw Teslas hold their place as the most common used EV on the market. However, the used stock of almost all EVs decreased through March - except for BMW. Perhaps it’s anticipation for the forthcoming i4, or delivery of new i3s, but there has been an increase in the availability of used 530e’s, 330e’s, and the X5 - xDrive40e. If you’ve been keeping your eye on one of these models, it may be a good time to check prices, as the average has dipped slightly in the past month. Used i3’s, on the other hand, continue to retain their value and even showed slight price increases, with 2018s being the best represented year in the market and 2017s at their heels.

Examining Cost per EPA Range Mile

One way to look at used EV prices is by comparing cost per range mile using EPA estimated range. One thing to keep in mind is that EPA range specifies how far your EV will go when the battery is new. EV batteries degrade based on age, how they have been driven, and how they have been stored. To really understand the value of an EV, it is critical to understand the battery in its current state, after several summers in the driveway or several hundred charging cycles.

March 2021 Report

Seasonality exists in used car sales and due to COVID-related economic changes, but this trend is real. Used car sales follow a predictable time delay, peaking at 3-4 years after being sold new. This pattern exists in electric vehicles as well: Six months ago, the most common model year for sale in used EVs was 2017 by far. Now, there are nearly as many 2018 model year used EVs for sale as 2017’s.

The Most Popular Used Electric Cars in March

  • Used Tesla Model S, Model 3 and Model X are a large and growing part of the used electric market.
  • BMW EVs are a surprisingly strong part of used EV inventories, but it’s not the i3’s that are growing in supply. Instead, there’s been a surge of the availability of BMW’s plug-in hybrids (5-Series 550e, 3-series 330e and the X5 xDrive40e) in the last 6 months.
  • Despite the Nissan Leaf being one of the most recognizable EVs on the road for years, it’s only the 4th most popular used EV for sale today.

How do older EV batteries hold up?

EV owners and shoppers perceive that EV batteries last just seven years (Cox Automotive study), but the reality is generally better. A lot of factors play into the battery life of each EV over its life, including manufacturing variances, pack layouts and cooling systems, calendar age, use, temperature history, charging behavior. In our data analysis of 1000’s of EVs on the road, we’ve found that odometer reading alone isn’t particularly helpful in understanding each vehicle’s battery life.