Used electric vehicle sales increased 12% year-on-year in the first quarter, while new EV sales declined by 28%, according to Cox Automotive. The data indicate diverging trends between new and pre-owned segments of the EV market.
New EV Sales Under Pressure
New EV sales fell by 28% year-on-year in the first quarter. The decline follows changes to consumer incentives, including the removal of a $7,500 tax credit. Demand for new vehicles appears sensitive to pricing and policy support. Market conditions are affecting purchasing decisions.
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Rising Momentum In The Pre-Owned Sector
Sales of used EVs rose 12% compared with the same period last year and increased 17% quarter-on-quarter. Growth reflects rising demand for lower-cost electric vehicles. The segment is expanding as supply increases and pricing becomes more competitive. Pre-owned models are attracting a broader range of buyers.
Economic Pressures And Lease Expirations
Higher fuel prices, averaging above $4 per gallon, are influencing consumer behavior. Buyers are considering alternatives with lower operating costs. A large number of lease expirations has added inventory to the used EV market. Increased supply is supporting transaction volumes.
Market Equilibrium Through Supply And Demand
EVs are expected to account for 15% of off-lease vehicles by year-end, up from 7.7% in the first quarter. This shift is increasing availability in the secondary market. Average prices for used EVs reached $34,821, compared with $33,487 for comparable gasoline vehicles. Pricing differences between the two segments continue to narrow.
