Over the course of three years, from 2020 until 2023, there was a severe shortage of new cars being manufactured. Consequently, the availability of used cars in the marketplace has dwindled significantly. The scarcity of new cars sold for three years has resulted in a shortage of used cars entering the market.

Opportunity in Used Electric Vehicles
While good deals on traditional used cars are becoming increasingly rare, there’s still hope for finding bargains in the realm of used electric vehicles (EVs). According to the New York Times, the value of used EVs has sharply declined. The surplus in supply is attributed to many people purchasing EVs as secondary or tertiary vehicles, leading to an oversupply in the market.

Incentives and government support
In many states, incentives and government subsidies are still available for purchasing used electric vehicles. For instance, part of the climate law enacted last year offers a tax credit of up to $4,000 for purchasing a used electric vehicle. These incentives make the prospect of buying a used EV even more appealing.

Financial Advantages of Used EVs
The high cost of new electric vehicles deters many buyers, but the used market presents a more financially viable option. Used battery-powered models are 28% less expensive than they were a year ago, contrasting with a 7% decrease in the overall price of traditional used cars. This significant drop in price makes used EVs an attractive alternative for budget-conscious consumers.

Considerations for the Future
While used electric vehicles offer immediate cost savings, it’s essential to consider their potential future implications. One such consideration is the possibility of taxes being levied based on miles driven instead of traditional gasoline taxes. As fuel taxes decline due to the rise of EVs, some states are contemplating a shift towards mileage-based taxation, which could impact EV owners in the future.

Despite the challenges posed by the scarcity of traditional used cars, exploring the used car market, particularly for electric vehicles, can yield significant savings. If you’re in the market for a vehicle and unable to find a suitable gasoline-powered option, don’t discount the potential value and affordability of used electric vehicles until you’ve thoroughly explored your options.