Dealers worrying about plunging prices for used electrified vehicles can take some solace from recent Carfax data suggesting there is consumer interest if the price is right.
In May, Carfax found that the listed prices for used battery-electric (BEV), plug-in hybrid-electric (PHEV), and hybrid-electric vehicles (HEV) at dealerships increased to an average of $30,639, up 2.6% from April and 2.7% from May 2024.
In dollar terms, prices rose $750 in May compared to April for the entire country and an impressive $1,100 in the West. “For any category, that would be a huge jump,” Carfax analysts write in the report. Carfax does not separate prices by powertrain category.
“It was such a surprise to me that hybrids and EVs saw such a jump in price,” Patrick Olsen, Carfax content strategy director, tells WardsAuto. “It is just one month, but it is the reversal of a two-year downward trend.”
The trend suggests growing demand beyond just early adopters, Olsen says.
EVs are Priced to Sell
The Cox Auto EV Market Monitor offers a more granular look at used BEV prices. In April, the most recent month available, the BEV list price rose 3.8% year-on-year to $35,874.
However, compared to March, the price was down 2.8%, suggesting the inclusion of hybrids in the Carfax number may have pushed the average listing price up month-on-month.
The rise in electric-vehicle listing prices may be due to consumers rushing to take advantage of the up to $4,000 used-BEV tax credit from the federal government before it expires, Olsen says.
The Uber and Lyft Lift
Total used BEV inventory at dealerships in May rose 50% compared to the same month in 2024, according to Recurrent, a used EV data analytics firm. Tesla models still accounted for a majority of that inventory, though the brand’s dominance is shrinking.
While Tesla BEVs are currently coming back into the used market at high rates, they aren’t just sitting on dealer lots, says Scott Case, Recurrent co-founder and CEO.
Talking with dealer customers, Case has learned that buyers of used Teslas are changing from early adopters to ride-sharing drivers.
"A lot of used Model 3s, for instance, are getting put into service by folks doing ride-sharing with Uber and Lyft,” he says.
The “countervailing forces” of tariff-driven new-car price increases and the impending repeal of EV rebates are also “pushing against the increased supply of used EVs, holding prices steadier than they would be otherwise,” Case says.
CPO It!
Dealers will face a tsunami of lightly used electric vehicles coming off lease in the next three years.
According to Recurrent, some 125,000 leased BEVs will come into the used market in 2025. In 2026, that number will nearly triple to 329,000 and by 2027, it will hit 650,000 units.
One strategy for dealing with those used EVs is to turn them into Certified Pre-Owned units. Demand for CPO EVs is surging, according to Urban Science.
BEV, PHEV and HEV combined CPO sales for the first five months of the year were up 63% to 95,019 units, according to Urban Science. All CPO sales rose 2% to just over 1 million units.
By powertrain, CPO sales for BEVs through May were up 63% to 20,698 units, according to Urban Science. CPO sales for PHEVs were up 38% to 15,347, and hybrids were up 71% to 58,983 units.
