New EV Sales Decline, But Used EVs Are Experiencing a Significant Resurgence | Carscoops

      Despite a month-over-month rise, new electric vehicle (EV) sales in May experienced a year-over-year decline, prompting some brands to reduce their prices.

      June 21, 2025 at 10:40

      by Stephen Rivers

      New electric vehicle sales saw another decline in May.

      In contrast, used EV sales experienced a significant year-over-year increase.

      The data indicates multiple factors influencing pricing, inventory, and incentives.

      Everyone looking for a new vehicle wants a great deal, and currently, there are many opportunities in the electric vehicle market. This is partly due to new EVs not selling as quickly as they once did in the United States. While there was a slight uptick in sales from April to May, they remain down by 10.7 percent compared to the previous year. Consequently, the offers are becoming more attractive.

      Data from Cox Automotive reveals that new EV prices are declining. In May, the average price decreased by 2.3 percent to $57,734. Additionally, incentives for these vehicles rose by 19.4 percent to an average of $8,226. This amounts to approximately 14.2 percent of the average transaction price (ATP), the highest level since 2019.

      Several prominent models, such as the Ford Mustang Mach-E, Kia EV6, Nissan Ariya, and Acura ZDX, can be acquired for effectively less than $40,000, based on calculations that deduct average model-specific incentives from their ATPs.

      Interestingly, the used electric vehicle market is moving in the opposite direction. The average price increased by 0.9 percent from April to May, and by 2.6 percent year over year, equating to an average transaction price of $36,053. Despite this price increase, sales rose by 1.1 percent month over month and a notable 32.1 percent year over year. Of these sales, Cox estimates that nearly half (49.6%) were Teslas.

      The price disparity between used EVs and traditional internal combustion engine vehicles is also narrowing, remaining under $2,000. Not surprisingly, the Tesla Model 3 was the best-selling used electric vehicle in May, with an average selling price of $23,160, reflecting a 1.6 percent drop from April.

      Used EV inventory is notably lower than that of new EVs. Data indicates a supply of 40 days in May, 11 percent less than a year ago, marking the lowest count since June 2022, which represents the number of days a company can maintain inventory before depletion.

      "As EV adoption accelerates, it's crucial to ensure a growing supply of affordable models," stated Cox. "For many consumers, price remains one of the most significant obstacles to switching to electric."

      Conversely, new EV dealerships reported an average of 111 days of supply in May, which is an 8 percent increase from April but still 11.6 percent lower than in May 2024.

      The EV market is currently navigating a complex landscape, with increased incentives, reduced prices on new EVs, and rising costs for used vehicles. For buyers, this presents an opportunity to secure excellent deals; however, it may be time-sensitive, especially with the potential reduction of the $7,500 tax credit for new EVs and $4,000 for used vehicles approaching.