Prices on used hybrids, EVs jump more than 40% last month
Average gas prices in the U.S. were at $4.239/gallon on Monday, which is $1.374 higher than they were a year ago, according to the U.S. Energy Information Administration.
It’s no wonder, then, what has happened to the cost of used vehicles that run on alternative sources of energy, even amid a market already inflated by material and geopolitical impacts.
Though the year-over-year increase slowed from January, overall used-car prices in February were still considerably more expensive than they were a year ago – especially alternative-fuel models.
That’s according to an analysis from iSeeCars.com, which examined 1.8 million sales of used vehicles from ages 1 to 5 last month and found that the average price on these pre-owned vehicles was $35,029 — a 35% spike from February 2021.
In January, used-car prices were up 36.9% year-over-year.
“After coming down slightly in February, used-car prices remain elevated due to lingering supply constraints, and they are expected to rise again due to geopolitical factors as Russia is a key supplier of materials used to make car parts and microchips,” iSeeCars executive analyst Karl Brauer said in the analysis.
“We are also seeing a significant increase in demand for used hybrid and electric vehicles as a result of high gas prices, with the cost of hybrids increasing by 46.9 percent and electrics increasing by 43 percent compared to last year,” he said.
Meanwhile, non-hybrid/non-electric vehicles were up 34.4% in price last month.
Two electric vehicles and two hybrids were among the 10 used vehicles with the largest price hikes in February, according to iSeeCars.
That includes the Hyundai Sonata Hybrid, which has the biggest used-car price jump at 61.2%. The other hybrid to crack the list, the Toyota Prius, was No. 10 with a 46.7% price increase over February 2021.
The two electrics on the list were the Nissan LEAF (No. 3, with prices up 54.3%) and the Tesla Model S (No. 8, with a 47.4% uptick).
“Hybrid vehicles are in high demand due to soaring gas prices, with the hybrid category as a whole increasing in price by 47 percent,” said Brauer. “Affordable transportation has seen a surge in demand in the wake of heightened used car prices , and these hybrid cars are less expensive than the average used car.”
As for the electrics, Brauer said: “The Nissan LEAF’s price increase is likely due to the surge in gas prices as well as the heightened desirability for the redesigned 2018 model, which benefitted from increased range and is now coming off lease and entering the used car market.
“Meanwhile, demand for used versions of the Model S waned in recent months as consumers embraced the more affordable Model 3 and the Model X SUV,” he said. “But with the recent upgrades to the Model S, plus the new ‘Plaid’ model and higher fuel prices, demand has increased for the Model S.”
By body type, the used-vehicle segment with the largest price increase last month was wagons, where prices went up 41.6%. Hatchbacks were next (up 41.0%), followed by sedans (up 40.6%), convertibles (up 36.7%) and minivans (up 35.6%).
SUVs weren’t far behind (up 35.4%) as the other segment to beat the average increase for the industry. .
Meanwhile, coupe prices were up 32.7% and pickup prices climbed 22.8%.
“Wagons, sedans, and hatchbacks have the lowest average prices among all body styles, which further illustrates the heightened demand for affordable transportation,” said Brauer. “Additionally, coupes and trucks were the first segments to see big price increases more than a year ago, so their increase over the past 12 months is smaller relative to other body types.”