As more people switch to electric vehicles, the used electric vehicle market is starting to experience rapid growth.
Used electric vehicle sales through licensed dealerships rose 32% in the first three months of the year, to nearly 43,000, according to data from industry analyst Cox Automotive. The average listing price for a used electric vehicle was about $43,400, down 4% from prices at the start of 2022 and well below the average price for a new electric vehicle, according to Cox.
“Every new vehicle eventually becomes a used vehicle,” Jonathan Smoak, chief economist for Cox Automotive, said in a statement. “Our datasets indicate that sales of used electric vehicles will begin to increase rapidly from here, following a clear trajectory set by new sales.”
The U.S. electric vehicle market is growing rapidly, with Cox predicting new sales will surpass 1 million vehicles for the first time in 2023. The increase comes in part from efforts by the Biden administration, including tax breaks for new and used electric vehicles that were put in place in the 2020 Inflation Reduction Act. 2022.
For used cars purchased in 2023, people can claim a tax credit of up to $4,000 on qualifying electric or fuel cell electric vehicles. There are a few limitations though, including that the vehicle must be at least two years old and the credit can only be claimed once in the life of the vehicle. CNET’s Dan Avery Explains how to claim the tax deduction for used and new electric vehicles.
On Wednesday, the US Environmental Protection Agency is expected to propose rules aimed at “ensuring that all-electric vehicles make up up to 67 percent of new passenger cars sold in the country by 2032,” according to The New York Times. That would be a massive increase over existing electric vehicle sales, which Cox said is expected to account for nearly 7% of all new vehicle sales in the first quarter of this year, a “record high.”
For more, check out CNET’s list of the best electric cars.