Want To Buy A Used EV? These 10 Models Have Dropped Most In Cost
If you’re in the market for a new family car and want to make the switch to an electric vehicle (EVs), here are ten models that are now cheaper.
If you’re in the market for a new family car, and want to make the switch to a new electric vehicle (EVs), new developments in the EV market might make you want to consider getting a used car, instead. According to a new report from iSeeCars, several models of EVs have significantly dropped in cost over the past year.
This should be no surprise — previous reporting has found that many models of EVs have been slowly cutting costs month over month, like Tesla. But now, according to iSeeCars, the prices of EVs are now stabilizing, with prices down 3.6% year-over-year this June following months of continued price drops. The report analyzed over 1.8 million 1- to 5-year-old used cars from June 2022 to 2023, and calculated the price cuts from there.
“A year ago, used EV prices were on the upswing, rising faster than the average used car,” iSeeCars Executive Analyst Karl Brauer said. “Electric vehicle prices are now falling at nearly 10 times the rate of the average used vehicle, reflecting a clear shift in EV supply and demand.”
The cars are listed not by the most significant drop in real dollars — rather, the largest price drop in terms of percentage of the overall cost of the vehicle. The Tesla Model X, for example, has had the 2nd most significant price drop since June 2022. But it’s still one of the more expensive vehicles on this list, clocking in at an average price of $70,158 in June of 2023, much more expensive than the Nissan LEAF or BMW 5 Series, models lower on the list.
And the cost of your car could be cheaper — if it qualifies for the Used Clean Vehicle Tax Credit, which was enacted in January of 2023.
Used EVs with the biggest price drops
- Tesla Model 3, average price $37,023, down 30.5% since June 2022
- Tesla Model X, average price $70,158, down 21.3% since June 2022
- Nissan LEAF, average price $22,504, down 19.2% since June 2022
- Tesla Model S, average price $64,938, down 19% since June 2022
- Land Rover Range Rover, average price $75,481, down 18.5% since June 2022
- Land Rover Range Rover Velar, average price $46,269, down 17.5% since June 2022
- Land Rover Discovery, average price $40,986, down 16.8% since June 2022
- Hyundai IoniQ Hybrid, average price $20,148, down 16.2% since June 2022
- Jaguar E-PACE, average price $33,214, down 16.2% since June 2022
- BMW 5 Series, average price $32,811, down 15.5% since June 2022
What Is the Used Clean Vehicle Tax Credit?
At the start of 2023, qualifying used electric vehicles purchased from a licensed dealer for $25,000 or less means you may be eligible for a used clean vehicle tax credit, which equals 30% of the sale price, up to a maximum credit of $4000, per the IRS.
To qualify for the tax credit for a used EV, you must:
- not be the original owner of the vehicle
- not be claimed as a dependent on another person’s tax return
- not have claimed another used EV in the last three years
In addition, your income is taken into account too.
Your gross income (AGI) may not exceed:
- $150,000 for married filing jointly or a surviving spouse
- $112,500 for heads of households
- $75,000 for all other filers
Do any of these used EVs qualify for the Used Clean Vehicle Tax Credit?
For a vehicle to qualify for the tax credit, there are several markers that need to be met as well, including:
- a sale price of $25,000 or less
- a model year at least 2 years earlier than the calendar year when you buy it
- a gross vehicle weight rating of less than 14,000 pounds
- not have already been transferred to a qualified buyer after August 16, 2022
- have a gross vehicle weight rating of less than 14,000 pounds
- be an eligible FCV or plug-in EV with a battery capacity of at least 7 kilowatt hours
- be for use primarily in the United States
Of the 10 used vehicles with the lowered prices, the Nissan LEAF and the Hyundai IoniQ Hybrid qualify for the tax credit. Jaguar entered into a “written agreement with” the government “to become a qualified manufacturer,” but hasn’t yet submitted a list of makes and models, so keep an eye out for that if that’s your dream EV.
To check a full list of the used EVs that qualify for the tax credit, check out IRS’ list.
To read the full report, head to iSeeCars.