Electric cars were sold as the future, yet many owners trading in a used EV in 2024 got far less than they expected. For a shopper, that same drop means a used EV can be a real bargain. Here is what pushed prices down and what to keep in mind before buying.
How far used EV prices have fallen
Since the start of 2023, the average price of a three-year-old used EV has dropped by about a quarter. That made many of them cheaper in 2024 than gas cars of the same model year.
| Price drop, three-year-old used EV | 25% since the start of 2023 |
|---|---|
| Steepest declines over the past year | Tesla Model 3, Kia Niro EV, Maserati Levante, Nissan Leaf, Hyundai Kona Electric, Chevrolet Bolt |
| Share of dealer-sold new EVs that are leased | Nearly 80% |
Part of the story is that new EVs became cheaper too. When a new model costs only a little more than a used one, many buyers simply choose the new car, and used EVs stay on the market longer.
Six reasons used EVs lost value
Tesla kept cutting prices
As the largest EV brand, Tesla lowered prices again and again to keep sales up. Each cut lowered what earlier cars were worth, and some shoppers started waiting for the next cut before buying.
Other automakers followed
To stay competitive with Tesla, other brands reduced their own prices. That pulled values down across the whole electric market, not just for one make.
A big rental fleet sold its EVs
A major rental car company reportedly sold nearly one third of its electric fleet and bought gas cars instead, citing weaker demand than expected and higher maintenance costs. That put a wave of used EVs on the market at once.
Strong deals on new cars
Automakers pushed cheap leases and low-interest financing on new models. With offers like that, a slightly older used EV that saves only a small amount is a harder sell.
Most EVs are leased
Nearly 80% of new EVs sold through dealerships are leased. That figure leaves out direct-to-consumer brands such as Tesla, Rivian and Lucid, so the share across the full market is likely much lower.
The lease tax credit
In 2024, the federal $7,500 EV credit also applied to leases, not only to purchases. That made leasing a new EV even more attractive compared with buying a used one.
The upside for used EV buyers
In 2024, the IRS offered a used clean vehicle credit for shoppers who bought a qualifying used EV from a licensed dealer. Tax rules change, so check the current IRS guidance before counting on it.
| Price limit | $25,000 or less |
|---|---|
| Credit amount | 30% of the sale price |
| Maximum credit | $4,000 |
| Where to buy | A licensed dealer |
Low prices plus the credit drew many buyers in 2024. Former rental Teslas were especially popular, and one Michigan dealer was reported to have sold more than 200 used EVs in a single month, far more than a year earlier.
The bottom line
Fast depreciation hurts the first owner, but it works in the next buyer's favor. A used EV can cost less than a comparable gas car, so compare it with new-car deals, check the battery's condition and confirm which tax credits still apply.
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