EV Sales Shift

Market Trends

There’s a curious shift happening right now in the electric vehicle (EV) market. While the sale of new EVs has taken a hit, with a notable decline of 10.7% year over year despite a slight month-to-month rise in May, the used EV market is experiencing a fresh burst of interest. In stark contrast, used EVs saw a 32.1% increase over the previous year. This shows the dynamics of how pricing and market conditions are impacting consumer choices.

Price Dynamics

Prices for new EVs are becoming more inviting. The average price in May dropped by 2.3% to $57,734. Along with these price cuts, the incentives have ramped up by 19.4%, averaging $8,226 per vehicle. This makes up about 14.2% of the average transaction price, the highest it has been in years.

Popular EV Models Under $40k

The Ford Mustang Mach-E, Kia EV6, Nissan Ariya, and Acura ZDX have caught attention for their more affordable pricing. When model-specific incentives are applied, these cars effectively sell for under $40,000, making them a compelling choice for budget-conscious buyers.

Used EV Market

Conversely, the used EV market is heating up. The average price rose to $36,053, up 0.9% from the previous month and 2.6% from the previous year. Despite higher prices, sales jumped significantly, led by a strong showing by Tesla – half of used EVs sold were Teslas. The Tesla Model 3 was especially popular, selling for an average of $23,160, a slight drop from April.

Supply and Demand

There’s less of a supply squeeze on new EVs, with an average of 111 days’ worth of supply in May, slightly up from April. Compare that to the tighter situation in the used EV market, where just 40 days’ supply was available, a significant contraction from a year ago. The balance between supply and demand reflects underlying market challenges and opportunities.

Concluding Thoughts

The electric vehicle landscape is in flux. Prospective buyers might find this a great time to snag deals on new EVs, especially with incentives still robust. However, this favorable buyers’ market may not last forever, especially with federal tax credits like the $7,500 new EV credit potentially on the chopping block. Smart shoppers may want to keep their finger on the pulse to take advantage of these shifts before the market dynamics shift again.