While sales of brand-new electric cars have begun to decline, secondhand EV sales are rising.

Used car sales are rising while sales of new electric vehicles are down.
Used car sales are rising, while sales of new electric vehicles are down.

Both the quantity of used electric vehicles available for purchase and the number of individuals wishing to acquire them have increased as a result of a variety of variables. Tax benefits, price reductions, and an abundance of low-cost Tesla models resulting from Tesla’s own pricing reductions on its new cars and SUVs are some of the causes.

Searches for used electric vehicles on Cars.com, a website that lists dealers for both new and used cars, had climbed by 45% from the previous year. The first quarter of this year saw a 39% increase in interest in EVs over the same period last year on True Car, another website that assists consumers in finding new and used cars. Used EV sales on Carvana, a website that sells used cars, had more than doubled from the previous year.

One reason is that federal tax incentives are now available for used EVs as well as new ones, and they come at a perfect moment.

The dealership can use the $4,000 federal tax credit for pre-owned electric vehicles as a price reduction during the transaction, saving the buyer from needing to wait until they file their taxes to receive the money.