Used EVs are suddenly hot sellers, with prices in the $20,000 to $30,000 sweet spot

Used vehicles are not exactly flying off the lot right now, but EVs are bucking the trend with prices hitting the sweet spot of around $20,000 to $30,000.

Used EVs offer more at lower prices

Higher prices led to slower used car sales in the third quarter. According to a new analysis by Edmunds’ director of insights, Ivan Drury, the average transaction price for a 3-year-old vehicle rose to $31,067, up 5% from Q3 2024.

Used vehicle prices topped $30,000 in Q3 for the first time since 2022, when limited new-car availability led buyers to look for used options.

With prices nearly the same as buying new, shoppers are apparently waiting for the market to cool. The average number of days vehicles sat on the lot rose to 41 days in the third quarter, up from 37 in Q3 2024, and its slowest pace since 2017.

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However, not all vehicles are sitting on the lot. Used electric vehicles were a bright spot, selling in an average of 34 days, a week less than other powertrain options.

Despite limited options in 2022, eight of the top 20 fastest-selling 3-year-old vehicles were EVs, “underscoring their growing appeal among shoppers seeking value and lower operating costs,” the Edmunds report highlighted.

EVs sold for an average of $29,922, or about $1,100 less than gas-powered vehicles, and they had significantly fewer miles. Electric models averaged 35,661 miles compared to 39,525 miles for gas vehicles.

Nearly two-thirds (63.1%) of the electric vehicles sold fell in the $20,000 to $30,000 price range, compared with just 42.5% of other vehicles.

The Tesla Model S was the fastest-selling used car in Q3, averaging 21.5 days to turn, followed by the Model 3 and Model Y at 24 and 26.3 days, respectively.

The Hyundai IONIQ 5 ranked 11th at 29.7, while the Volkswagen ID.4 (30.9), Audi e-tron (31.7), Kia EV6 (32), and Ford Mustang Mach-E (32.4) rounded out the top 20.

Used Cars Are Lingering on Lots as Prices Climb, But EVs Are Moving Fast

Used EVs “deliver one of the strongest value propositions in the market, Edmunds noted, adding that the lower prices offer shoppers access to new tech and performance for significantly less than paying for it new. “In many ways, used EV buyers are embracing technology that’s just one generation old, while new EV buyers still face the risk of paying premium prices for models that evolve rapidly year over year.”

The expiration of the $7,500 federal tax credit for new EVs could push even more buyers to look toward the used market.

Looking to test one out for yourself? We can help you get started. You can use our links below to see available EVs in your area.