Electric vehicle prices historically punished your wallet twice — first at purchase, then again when you discovered charging station etiquette. But the automotive gods have finally smiled on budget-conscious buyers: used EVs now cost less than comparable gas cars, flipping decades of conventional wisdom on its head.
The Great Price Reversal
Used EV values dropped 30-39% year-over-year while gas cars declined just 3-7%.
The numbers tell a story that would make any spreadsheet enthusiast weep with joy. Average used EVs hit $28,767 in May 2024, compared to $31,424 for used gas vehicles—a gap that widens monthly as inventory floods the market. This isn’t some statistical anomaly; it’s rapid battery innovation making three-year-old EVs feel ancient compared to today’s 300+ mile range models.
Federal Money on the Table
Up to $4,000 in tax credits sweetens deals on qualifying used EVs.
Uncle Sam wants you driving electric badly enough to subsidize your car payments. Qualifying used EVs under $25,000 earn buyers up to $4,000 in federal tax credits—essentially a government-sponsored discount that makes already cheaper EVs even more attractive. With 34% of used EV inventory now priced under $25,000, you’re looking at real money back at tax time.
Warranty Safety Net
Most used EVs remain under manufacturer coverage, eliminating battery replacement anxiety.
Here’s where the market gets interesting: 72% of used EVs are less than five years old, with 45% from 2023 or later. Translation? Your biggest fear about expensive battery replacement is largely unfounded. Most available models remain under partial warranty coverage, turning what was once a financial gamble into a calculated risk.
“The No. 1 thing we see time and time again is that the biggest factor is price. It’s not range anxiety or culture wars, it’s price,” according to Tom Narayan, auto industry analyst with RBC Capital Markets.
Your Move
This window won’t stay open forever as federal incentives face expiration.
With used EV sales jumping 32% year-over-year and inventory up 50%, selection has never been better. Your next car purchase just got a lot more interesting—and affordable.
