Rise of Battery-Electric Vehicles in the Used-Car Market: Insights from Carvana’s EV Trends Report

Are you in the market for a used car? Have you considered going electric? Well, now might be the perfect time to make the switch, as battery-electric vehicles (BEVs) are becoming more prevalent in the used-car market.

According to the recent EV Trends Report from Carvana, a leading online used-vehicle sales network, the growth in new EV sales is a positive sign for the used EV market. As new EVs enter the used fleet, prices are starting to normalize, making electric vehicles more accessible to a wider range of buyers.

Even major players in the automotive industry are taking notice of the shift towards used BEVs. Roger Penske, chair and CEO of Penske Automotive Group, revealed that his group is actually making more money on used battery-electric vehicles than on new ones. This trend is prompting dealers to be more selective in their trades and purchases of used BEVs.

In the U.S. market, Carvana reports that BEVs accounted for 4.3% of its total sales in the first quarter of 2024, more than double the share from a year earlier. On the new-vehicle side, BEVs made up 7.6% of total U.S. units sold in 2023, showing a steady increase in consumer interest in electric vehicles.

One of the key factors driving the growth of used-BEV sales is the decrease in prices. Price cuts on new BEVs, particularly from brands like Tesla, have led to a drop in average prices for used electric vehicles. Carvana reports that the price difference between used BEVs and used vehicles with internal-combustion engines has decreased, making electric vehicles a more affordable option for buyers.

So, if you’ve been considering making the switch to an electric vehicle, now might be the perfect time to explore the options available in the used-car market. With prices falling and more choices becoming available, going electric has never been more appealing.