U.S. Used EV Sales Rise Amid Falling Prices: Report

Sales of used electric vehicles in the United States rose 32% 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 around $43,400 (almost Rs. 35 lakh), down 4% from the same quarter last year and significantly lower than the average price of new electric vehicles of around $59,000 (almost Rs. 48 lakh).

The group said prices for used electric vehicles have likely been reduced due to Tesla’s aggressive price cuts for new vehicles.

“As the market leader drives down prices for new electric vehicles, used vehicle prices follow suit,” Cox said.

On Thursday, Tesla cut U.S. prices between 2% and nearly 6%, the fifth such cut this year. Washington will pass stricter battery supply requirements on April 18, which will limit many tax credits for electric vehicles.

In the first quarter of 2023, more than 2,25,000 electric vehicles were sold, according to early estimates from Kelley Blue Book, representing about 7% of new vehicle sales.

On Monday, General Motors said it sold more than 20,000 electric vehicles in the first three months of the year in the United States, the first time it has done so. Electric vehicles accounted for about 3.4% of GM’s sales in the United States in the first quarter.

In August, Congress created a tax credit used for electric vehicles of $4,000 (almost Rs. 3 lakh). Buyers must purchase a used electric vehicle for $25,000 (almost Rs. 20 lakh) or less from a dealership to qualify; maximum credit is 30% of sale price up to $4,000.

The adjusted gross income of used electric vehicle buyers cannot exceed $75,000 (nearly Rs. 61 lakh) for individuals or $150,000 (nearly Rs. 1.22 crore) for joint filers.

Cox Automotive forecasts this year that sales of new electric vehicles in the United States in 2023 will exceed one million units for the first time, compared to about 807,000 last year, or 5.8% of all sales in the United States. United.

Cox said used electric vehicle wholesale values ​​were up 3.7% year-over-year, compared to the overall decline of 2.4%.

© Thomson Reuters 2023

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