Sales of new electric vehicles (EV) fell off a cliff after the $7,500 federal tax credit died at the end of last September, and as a result there is a 168-day supply of new EVs on dealer lots. Time for a deal, right?
Not so fast.
Typically, when there is a glut, there are deals to be had, but looking at the latest numbers from Cox Automotive suggests the best way to get a deal on an EV is to head over to the used car lot. The average transaction price (ATP) on a new electric vehicle in January was $55,715. And that is down compared to the same time last year — but less than 1 percent. It’s 3.1 percent lower than December’s numbers.
However, take a look at the used EV numbers and the ATP was $35,442 last month. A 5.1 percent drop from January 2025 and a 2.5 percent decline from December. Perhaps the most important statistic to examine is the price parity with gas-powered cars. There is a $1,376 difference between used EVs and ICE vehicles, while its over $7,000 between new EV and ICE cars and crossovers.
If you’re concerned about buying a used EV because of battery degradation or some other issue, you may be in the minority. Previously owned battery-electric sales jumped 21.2 percent in January to 31,503 vehicles. And it may be a trend as that number is up compared to December when it rose 20.8 percent.
“Tesla led the category with 12,416 units, followed by Audi (2,002), Ford (1,995), Chevrolet (1,959), and BMW (1,842),” Cox reported. “Most brands posted month‑over‑month increases, with Cadillac, Rivian, Porsche and GMC as the key exceptions — though most of those declines were modest, underscoring the broad‑based strength of the used EV market in January. Audi displaced Nissan from the top five, surging 63.4% month over month — the strongest gain among the leading brands.”
There was a 43-day supply of used EVs last month, which down 12.1 percent from December, which is lower than the supply for used gas- and diesel-powered vehicles. In short, you may not find the exact EV you want, especially if it’s a Tesla or Audi, but it may be a good deal.
If you’re concerned about the remaining battery life of a used EV, a recent study nearly 23,000 vehicles and 21 different models by Atlanta-based Geotab, a company that tracks fleet vehicle performance, showed a drop of 2.3 percent annually, settling at 81.6 percent of the original capacity after eight years. But that is the worst-case scenario, the report notes that many vehicles outperform those numbers.
In short, if your used EV started life getting 300 miles on a full charge, it will be at 244 miles. Considering the average American drives less than 40 miles a day and the average EV owner charges at home, there’s case to be made for getting a good deal on a used EV.
[Images: Tesla, Hyundai, Ford, Audi]
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