With better gas mileage, greater fuel economy, and a much smaller carbon footprint than its gas-powered counterparts, it’s no wonder why electric vehicles are dominating the auto space.
While many electric vehicles still have some kinks to work out like driving distance and fuel efficiency, drivers are taking notice of how much more affordable having an electric vehicle can be than having a gas-powered vehicle.
Because of this, electric vehicles have quickly become one of the best-selling used cars in at least nine major metro areas throughout the United States. According to a recent study done by iSeeCars.com, electric vehicles, particularly used ones, have become the vehicle of choice for many commuters in densely populated areas.
Where Are Used Electric Car Sales Booming?
In June 2022, used electric vehicles dominated automotive sales in nine major cities. They include Austin, Texas; Denver; Las Vegas; Miami-Fort Lauderdale, Florida; Philadelphia; Phoenix; San Diego; San Francisco-Oakland-San Jose, California; and Tampa-St. Petersburg, Florida.
These metropolitan areas are known for heavy traffic and end commuters who demand a reliable, efficient, and affordable vehicle. When you look at the data, it makes sense that these regions would be the ones to see the most growth in electric vehicles.
Are Drivers Buying New or Used?
Sales of battery-operated vehicles accounted for roughly 5.6% of all new vehicle sales during the second quarter of 2022. This rate is nearly double that of the same period last year. Along with this data, sales indicate that drivers are turning to used electric vehicles as opposed to new electric vehicles at greater rates.
The global impact the novel coronavirus had on the world resulted in shutdowns, lockdowns, and absolute pauses in every part of the production process of nearly every industry, the automotive industry included.
This led to an extreme semiconductor shortage that we’re still in today. Without these semiconductors, EV manufacturers could not keep the pace of building new vehicles as semiconductors are required in nearly every aspect of a vehicle’s design.
With a limited supply of new electric vehicles and increased demand for drivers wanting to go electric, used electric vehicles were seen as the ideal solution.
In addition to the impact the coronavirus had on the automotive market, the price of a new vehicle jumped nearly $20,000 above the average price. This inflationary price hike funneled more drivers into the used car market as well.
The Future Is Electric
While the automotive industry is still struggling to keep up with the production of new vehicles, there is some relief on the horizon. As supply chain kinks continue to resolve, it won’t be long before the automotive market cools down, prices stabilized, and supply increases again. These factors and many others will all also apply to electric vehicles as well.
To help speed up the supply of semiconductor chips, the U.S. House and Senate have approved a $280 billion dollar package known as the CHIPS and Science Act. Under this act, companies including Intel and Samsung are expected to build semiconductor plants right here in the U.S.
This plant production will help fuel the semiconductor shortage, allowing an increase in both supply and affordability for new electric vehicles. Until then, it’s expected that the demand for used electric vehicles will continue to grow. With all the perks that they have to offer, we’re not surprised.
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