Consumer warning: Why electric vehicle prices are falling

ROCHESTER, NY — If you’re thinking about buying an electric car, now may be the time. For the first time, the average price of a used electric car is lower than that of a gasoline-powered one.

Leading electric vehicle models fell 27% year-over-year. As sales declined, Tesla cut the prices of its new cars in 2023. After that, the prices of its used models fell dramatically.

Examples of price reductions:

• Used Tesla Model S and Model Y fell by more than 34%
• The Model X fell by more than 32%
• The Model 3 fell by more than 31%
• The Roadster lost the least value at just over 27%

Why are prices falling?

First, it was people who were excited about electric cars that came to market early. Then manufacturers overestimated consumer enthusiasm and flooded the market with electric cars. Then basic economics came into play – supply was greater than demand, which drove down the price on the market.

In response, Hertz decided to sell a third of its fleet – 20,000 electric cars – at what the company calls “fixed prices.”

Deanna looked at their website and found that the closest electric vehicles for sale are in Pittsburgh, such as a 2023 Chevy Bolt for just under $18,000 and a 2023 Tesla Model 3 for $23,000, less than the Blue Book value.

What should you pay attention to when buying a used electric car?

Deanna spoke to the experts at Consumer Reports to get answers.

“The first thing is the batteries,” said Alex Knizek, deputy director of auto testing development and Consumer Reports. “They’re powered by a huge battery, not an engine and a gas tank. What we call the health of that battery, which is essentially how much it can be charged compared to when it was new, can really impact the life of the car and how much range you get and how far the vehicle can go. The problem is that it’s a little bit difficult to measure battery health, so you generally want to look for an electric vehicle that has generally been well cared for.”

So here’s the thing about the all-important electric battery: you extend the life of the battery by not charging it to full. Instead, it should be charged to around 80%. If you buy from a rental car company, you have no guarantee that the battery has been treated with the same level of care. Also, rented electric vehicles may have more miles on them, so be aware of that. If you buy a used electric vehicle, check the tires too. Electric vehicle tires wear out much faster than gasoline-powered cars. Happy shopping!

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