EV Prices Level Off Ahead of Used EV Tax Credits But Only 12% Are Eligible

The latest Used Electric Car Market Report from Recurrent explores how U.S. tax credits are poised to accelerate an already rapidly growing secondary EV market

Des Moines, Iowa, UNITED STATES

SEATTLE, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Recurrent, the car industry’s leading analyst of electric vehicle (EV) range, today released its Q4 2022 Used Electric Car Market Report, revealing that prices for used EVs have stabilized after climbing 12 of the last 16 months. This is critical because, based on price, only 12% of used EVs on the market today would qualify for the tax credits that begin in January 2023 as part of the Inflation Reduction Act (IRA).

The IRA includes a novel credit of up to $4,000 for qualifying used EVs for buyers. Elements like vehicle sale price, buyer income and previous rebates are all factored into the credit amount and eligibility. Recurrent has a full used EV tax credit summary on its website.

“The U.S. electric car market is on the verge of an inflection point,” said Scott Case, co-founder and CEO of Recurrent. “If we get this right, and the bill works as intended, the EV targets and combustion engine bans for 2035 look suddenly timid.”

The market report includes research from August that compares EV adoption projections by a leading analyst. Over the course of four years – from 2018 to 2022 – U.S. EV sales projections for 2030 more than doubled, growing from an estimated 21% to 53% over that period. It demonstrates that adoption is already happening much faster than many predicted.

Other key findings from the report include:

  • The average price for a used EV listing is $42,700 compared to an average combustion engine car price of $33,957.
  • However, the average resale age of a combustion engine car is over six years old while the average age for resale of an EV stands at just four years.
  • Plug-in hybrids are included in the used tax credit, and 50% of the cars that meet the $25,000 price cap are plug-in hybrids.
  • One requirement of the IRA tax credits is that used EVs must be sold through a licensed dealer. Since about 50% of used car sales today are assumed to be private, expect to see a shift to a more dealer-favored market for lower-priced used EVs.
  • Only 17% of used EV sales from the last quarter were under $25,000 and 12% of inventory was listed below that price.

As a wave of U.S. drivers shift from gas to electric motors, Recurrent started a free EV 101 course to educate new and prospective EV owners about how to properly care for their car and its battery. Over 1,800 people have already enrolled during the early months.

About Recurrent
Recurrent was founded in 2020 with the goal to provide more transparency and confidence in pre-owned electric cars. Through its comprehensive battery reports for EV owners, buyers and sellers, it aims to accelerate the overall adoption of electric vehicles. To learn more about Recurrent, visit https://www.recurrentauto.com/.

Media Contact
Matt Greenfield
Uproar PR for Recurrent