Used electric vehicle (EV) prices are on a steep downward trajectory in international markets.
In January, after Tesla slashed the Manufacturer’s Suggested Retail Price (MSRPs) for new models, used Teslas have become significantly cheaper. As a result of lower prices and new tax credits, sales of used EVs are also increasing.
Prior to Tesla’s price cut announcement, used 2020 and 2021 Tesla list prices were 4.8% lower in the second half of January than they were at the beginning of the month, according to a new report from iSeeCars.com.
Lower fuel prices have also made EVs somewhat less enticing. According to the report, the price of a pre-owned Tesla Model 3 declined by 16.8% between September and December, and a further 5.2% following the price cuts.
The reasons for the decline also include worn batteries. According to international automotive enthusiasts and journalists, these cars are like cell phones that are discarded once their lives are complete.
Once the battery wears out, the whole car becomes useless. Resultantly, used EVs become less desirable among people who seek a daily driver with a longer life.