Used EV Sales Rise in US as Prices Fall: Report

Sales of used electric vehicles in the United States rose 32 percent in the first three months of 2023 as prices fell, data provider Cox Automotive said on Friday.

The group said average retail prices for used electric vehicles were about US$43,400 (nearly Rs.35,000), down 4 percent from the same quarter last year and well below the average new price of electric vehicles of about US$59,000 (nearly 48,000 rupees).

The group said used electric vehicle prices were likely reduced due to aggressive new-vehicle price cuts by Tesla.

“As the market leader pushes new electric vehicle prices down, used car prices will follow,” said Cox.

On Thursday, Tesla cut prices in the United States by 2 percent to nearly 6 percent, the fifth such cut this year. Washington will enact stricter battery procurement requirements on April 18 that will limit many EV tax credits.

In the first quarter of 2023, according to initial estimates by Kelley Blue Book, more than 2,25,000 electric vehicles were sold, accounting for about 7 percent of new vehicle sales.

On Monday, General Motors announced that it sold more than 20,000 electric vehicles in the United States in the first three months of the year for the first time. Electric vehicles accounted for about 3.4 percent of GM’s U.S. sales in the first quarter.

In August, Congress created a US$4,000 (nearly Rs. 3 lakh) used electric vehicle tax credit. Buyers must purchase a used EV for $25,000 (nearly Rs. 20 lakh) or less from a dealer to qualify; Maximum credit is 30 percent of the sale price up to $4,000.

The adjusted gross income of buyers of used electric vehicles must not exceed $75,000 (nearly Rs.61,000) for individuals or $150,000 (nearly Rs.1.22 billion) for joint applicants.

This year, Cox Automotive forecasts that sales of new electric vehicles in the United States will surpass 1 million units for the first time in 2023, up from about 807,000 a year earlier, or 5.8 percent of all U.S. sales

According to Cox, wholesale values ​​of used electric vehicles increased 3.7 percent year over year, compared to an overall decline of 2.4 percent.

© Thomson Reuters 2023

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