Surging fuel costs sending second-hand EV prices skyrocketing in US: Study
- The high cost of used electric vehicles are expected to decline in the coming months, claims the study.
Second-hand electric vehicles are witnessing a skyrocketing price hike, owing to the surging price of fuel in the US, claims a study by iSeeCars. The study also claims that the rising petrol prices are now pushing the values of used electric vehicles higher than ever. The study claims to have analyzed the prices of nearly 14 million used vehicles that were aged between one and five years. It claims the price of used electric vehicles has increased by 54.3 per cent year-over-year, as compared to the vehicles with internal combustion engines, which witnessed an average price hike of 10.1 per cent.
Until recent times, mainstream electric vehicles' value was typically depreciated rapidly due to the fast improving battery technology and lack of demand in the pre-owned market. However, the soaring petrol cost, improvements in public charging infrastructure and a lack of inventory for the new electric vehicles resulted in soaring demand for the used EVs.This is eventually resulting in rising costs of pre-owned electric vehicles.
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The study also points out that the prices of both electric vehicles and ICE vehicles were up to start the year, but consumption on both fronts started slowing down in February and March. The Russian invasion of Ukraine resulted in skyrocketing fuel prices in the international market. This pushed the growth of used EVs higher and slowed down the growth of ICE vehicles.
In this process, Nissan Leaf EV became the biggest gainer, with its average pricing shot up by around 45 per cent in 2022 as compared to 2021. Chevrolet Bolt remained the most affordable EV on the road this year, but it too witnessed a price surge of 29.3 per cent. All four Tesla cars witnessed a price hike, led by the Model S.
Karl Brauer, iSeeCars Executive Analyst of iSeeCars said that with more and more affordable new electric vehicles entering the market, EVs wouldn't be as much of a novelty, especially once supply chain issues begin to improve. This would result in a drop in price for the used electric vehicles in the coming future, he further said. “While prospective used car buyers will see steep price increases for EVs in the short term, it’s important to be patient because used EV prices are expected to decline in the coming months," Brauer further added.