Prices for used electric cars in the US are stabilizing – that’s why this is great news

Prices for used electric vehicles in the US have stabilized after rising in 12 of the past 16 months, according to research firm Recurrent in the electric vehicle range.Used Electric Vehicle Prices and Market Report – Q4 2022”, which was released today.

Prices for used electric cars are leveling off

This price stabilization is great news because, based on price, Recurrent reports that only 12% of used EVs on the market today can qualify for tax credits starting in January 2023 as part of the Inflation Reduction Act (IRA).

The IRA includes a used EV credit that will apply at 30% of the purchase price, limited to $4,000.

All used electric vehicles with batteries of at least 7 kWh are eligible if the model year is at least two years earlier than the calendar year in which the taxpayer purchases them and the used electric vehicle is valued at less than $25,000.

Plug-in hybrids are included in the used tax credit, and 50% of vehicles that meet the $25,000 value limit are hybrids.

Only 17% of sales were used electric cars last quarter less than $25,000and 12% of stocks were listed below that price.

Used EV credits are limited to individuals with an adjusted gross income of $75,000, a household income of up to $112,500 or filing jointly with an adjusted gross income of up to $150,000. Electric vehicle buyers are eligible for a used credit once every three years.

Used electric vehicles must be sold through a licensed dealer to qualify for the IRA tax credit. With around 50% of used car sales estimated to be private today, Recurrent logically suggests that we should expect a shift to a more dealer-friendly market for cheap used electric cars.

Credits for EVs can be used at sales points from 2024.

Scott Case, co-founder and CEO of Recurrent, said:

The US electric vehicle market is on the brink of a tipping point.

If we get it right and the bill works as intended, the goals of EVs and banning internal combustion engines by 2035 suddenly seem timid.

The relapse is detailed used the EV tax credit explanation on its website.

The actual cost of a used electric car

The periodic report also reports that the average resale age of CNG vehicles is over six years, while the average resale age of an electric vehicle is just four years.

The average price of a used electric vehicle listed is $42,700, compared to an average price of $33,957 for a used gas vehicle. But the savings in not buying gas should be factored into the total cost of an EV. NerdWallet writes:

According to a study by the U.S. Department of Energy’s National Renewable Energy Laboratory, over the expected 15-year life of the vehicle, the electricity to run an electric vehicle can be $14,480 cheaper than refueling a gas-powered vehicle. Idaho National Laboratory.

The market report also includes a study on August which compares Predictions of EV adoption. Over the four years from 2018 to 2022, US electric vehicle sales are projected to more than double by 2030, increasing from about 21% to 53% over that period. This shows that adoption is already happening much faster than many predicted.

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