Let's take a closer look at what this means for consumers and dealers alike.

Why Used EVs Are an Untapped Opportunity

The financial hurdles many consumers face in today’s vehicle market—high interest rates, negative equity, and the rising cost of new cars—have made vehicle affordability a pressing issue. Enter used electric vehicles, which are emerging as an affordable and smart alternative for those seeking reliable, eco-friendly transportation. Recent data shows that some late-model EVs are even more affordable than their gasoline-powered counterparts, offering savvy shoppers a chance to get more value for their money.

For example, while a used electric vehicle with 25,000-50,000 miles can cost around $27,639, a similarly aged internal combustion engine (ICE) vehicle averages $30,261. That’s nearly a 9% savings, not to mention the long-term benefits of lower fuel and maintenance costs. With numbers like these, it’s no wonder more and more drivers are reconsidering their stance on EVs.

Dealerships Should Embrace the Switch

For dealerships, this shift presents a unique opportunity. Customers who might initially come in looking for a traditional ICE vehicle may end up leaving with a used EV after realizing how affordable they’ve become. Dealers can position these vehicles as a great option for buyers looking for their second or third car—or simply seeking a lower-cost commuter solution. With tools like Lectrium's EV Range Map and EV Savings Badge, dealers can easily showcase the benefits of EV ownership directly on their vehicle detail pages (VDPs), giving consumers all the information they need to make an informed decision.

What’s Driving Prices Down?

A perfect storm of factors has contributed to the dropping prices of used EVs, including automaker price cuts and the influx of EVs from large fleets like Hertz. For example, Hertz’s decision to sell a significant portion of their EV fleet has sent used Tesla Model 3 prices as low as $20,000. Not only does this make EVs more accessible, but it also allows consumers to take advantage of federal tax credits of up to $4,000 for qualifying used EVs.

In fact, some buyers are now able to finance a used Tesla Model 3 for less than $400 per month when combining the vehicle’s lower price with tax credits and other incentives. This is a game-changer for middle-class Americans who might have once thought owning an EV was out of reach.

Depreciation: A Temporary Concern

While it’s true that EVs tend to depreciate faster than traditional gas-powered vehicles, this depreciation opens the door for budget-conscious consumers to snap up deals on high-quality electric vehicles. As the EV market matures and automakers introduce more affordable models, we anticipate that these trends will only continue. Lower prices on new EVs will naturally push down used EV prices, making them an even more attractive option in the coming years.

The Bottom Line for Dealers and Consumers

For consumers, the growing availability of used EVs presents an exciting opportunity to own a clean, efficient vehicle at a fraction of the cost of a new one. For dealerships, now is the time to embrace this shift and start actively promoting the benefits of used EVs to potential buyers. By offering used EVs alongside ICE vehicles and educating customers about the affordability and long-term savings they provide, dealers can help increase adoption rates and meet the growing demand for cost-effective electric transportation.

At Lectrium, we’re proud to support dealerships in this transition by providing tools that make EV adoption easier for consumers and more profitable for businesses. With our suite of customizable tools, dealers can showcase the financial and practical benefits of EV ownership directly on their VDPs, giving customers the confidence to make the switch to electric.

The era of the affordable electric vehicle has arrived—is your dealership ready to take advantage of this? Book a demo to learn more about Lectrium’s EV tools for dealers.