EVs Hit Range Limit as Hybrids Spark Demand

Highlights:

• Used EV prices are down 33.7 percent while the average used car price is only down 5.1 percent
• Teslas have had some of the biggest price drops for used cars, ranging from a $21,775 decrease for the Model X, $18,596 for the Model S and $14,716 for the Model 3
• New electric vehicles take almost three times as long to sell compared to a year ago
• Seven of the top 10 fastest-selling new cars are hybrids, including the Ford Maverick, Kia Sportage and Toyota Grand Highlander
• Three of the top 10 slowest selling used cars are EVs, including the Kia EV6, Ford F-150 Lightning and Polestar 2

iSeeCars analyzed over 2.3 million new and 1- to 5-year-old used cars to evaluate the market for EVs relative to other segments. The analysis compared EVs to hybrids and conventional fuel vehicles and found substantial weakness in measures of demand for EVs.

Used electric vehicle demand nosedives 

Average used EV prices in October 2022 were over 60 percent higher than other used cars, at $52,821 compared to $32,627, but by 2023 they had dropped to within 13 percent, $34,994 compared to $30,972.

Used car average days on market by segment

Three EVs in the Top 10 Slowest-Selling Used Cars

Three hybrids in the Top 10 Fastest-Selling Used Cars 

Used EV average days on market: Teslas and the Chevrolet Bolt still selling quickly

Used cars with the biggest price drops: Electric vehicles lead the charge on falling prices

New car average days on market: Hybrids selling faster, EVs selling slower 

“It took years for the car-buying public to understand and appreciate the benefits of hybrid technology,” said Brauer. “But enough people have figured it out that hybrids now sell faster than the average new car and much faster than new EVs. Electric car technology remains unfamiliar to most consumers and that lack of comfort, combined with their overall higher prices, is enough to reduce demand and slow EV sales compared to the average new gasoline or hybrid car.” 

The Top 10 Slowest-Selling New Cars: Electric cars selling slowly 

“The slowest-selling new cars are a combination of electric vehicles and luxury models, with nearly all of the non-EVs being older designs in need of a refresh,” said Brauer. 

Hybrids dominate the Top 10 Fastest-Selling New Cars

“Hybrid drivetrains have migrated from small hatchbacks to nearly every vehicle category over the past decade,” said Brauer. “Today’s buyers can find hybrid technology in almost every new-car showroom. Their lower price and lack of range anxiety, when compared against EVs, is clearly resonating with consumers.”

New EV average days on market: Luxury models lagging 

“The electric vehicle market has been flooded with new entries over the past 12 months,” said Brauer. “It appears the aggressive investment in EV production capacity has surpassed the consumer appetite for these models, at least in the near term.”

New car price vs. MSRP by segment

“An ongoing lack of supply has kept new cars selling at above sticker price, but electric vehicles are priced closer to MSRP than hybrid and gasoline vehicles,” said Brauer.

New cars available below MSRP

“There are still very few ‘deals’ in the new car market,” said Brauer. “Shoppers looking to pay below MSRP for a new car will have to do their research, but a small number of models can be bought below sticker price.”

Methodology

iSeeCars analyzed over 2.3 million new and 1- to 5-year-old used cars sold in October 2023. The average list prices and days-to-sell for each model were aggregated and compared. For new cars, list prices were compared to MSRP, and for used cars, list prices were compared to prices from October 2022. Heavy-duty vehicles and low-volume models were excluded from further analysis. For the used car analysis, models no longer in production prior to the 2022 model year were also excluded.

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