Tesla price cuts sales growth for used electric vehicles

The used EV market is finally starting to catch on, thanks to Tesla’s downward trend in prices over the last two years of major EV competition.

The market shift was evident at superstore CarMax Inc. of Fremont, California, according to a new Bloomberg report.

CEO Henry Melendez told Bloomberg about the results of the price drop: “We’ve seen a very good amount of interest. They’ve always wanted to get into an electric vehicle, but it just wasn’t as affordable.”

Bloomberg writes that a growing trend in the US, including in Tesla’s hometown of Fremont, shows that sales of used electric vehicles are up 70% in the first half of the year, according to Cox Automotive.

In June, iSeeCars.com reported that the average price of a used electric vehicle has dropped below $30,000, making them cheaper than regular gas cars.

The CEO of Jersey City, New Jersey-based Axis Motorcars told Bloomberg: “Tesla leads the market by lowering prices. Used electric vehicles are sold faster than petrol cars, almost within a week.”

The increase in supply is driving demand for used electric vehicles, with inventory now four times higher than in 2021, according to Recurrent. And Edmunds notes that used electric vehicles generally take longer to sell than gas cars.

However, for models priced between $20,000 and $30,000, used electric vehicles sell faster — within 30 to 36 days, compared to 39 days for gasoline cars, the report said.

Government incentives are also helpful. The Inflation Relief Act provides $4,000 in tax credits for used electric vehicles that cost $25,000 or less, making them more affordable. Edmunds’ Jessica Caldwell adds that Tesla’s limited updates to its models, such as the Model 3 and Model Y, make used versions attractive because they look similar to new.

Those incentives are, of course, up for grabs in the November election.

By Zerohedge.com

More top reads from Oilprice.com