- New electric vehicle sales took another haircut in May.
- Used EV sales went the other direction though, with a big increase year over year.
- The data suggests many factors at play affecting pricing, inventory, and incentives.
Everyone shopping for a new car wants a good deal, and right now, there are plenty to be found in the electric vehicle space. That’s partly because new EVs aren’t flying off the shelves as they once were in the States. While sales saw a slight increase from April to May, they’re still down 10.7 percent year over year. As a result, the deals are getting sweeter.
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According to data gathered from Cox Automotive, new EV prices are dropping. In May, the average price fell by 2.3 percent to $57,734. On top of that, incentives for these cars jumped 19.4 percent to an average of $8,226. That works out to roughly 14.2 percent of the average transaction price (ATP), which is the highest it’s been since 2019.
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Several notable models, including the Ford Mustang Mach-E, Kia EV6, Nissan Ariya, and Acura ZDX are available for what effectively ends up being less than $40,000, which the study calculated by subtracting the average model-specific incentives from their ATPs.
New and Used EV Sales May 2025
Interestingly, the used electric vehicle market is going in the opposite direction. The average price rose 0.9 percent from April to May and 2.6 percent year over year. In cold, hard numbers that represents an average transaction price of $36,053. Despite that, sales increased 1.1 percent month over month and a substantial 32.1 percent year over year. Of those, Cox estimates that almost half (49.6%) were Teslas.
The price gap between used EVs and traditional ICE+ vehicles is also shrinking, staying under $2,000. Unsurprisingly, The Tesla Model 3 was the top-selling used electric car in May, with an average selling price of $23,160, which represents a 1.6 percent decrease from April.
New and Used EV Prices May 2025
Supply Shortages for Used EVs
Used EVs up for sale are far less than new ones. Data suggests 40 days of supply available in May, 11 percent less than a year previous and the lowest since June of 2022. That figure is the number of days of inventory a company has before it runs out of product.
“As EV adoption accelerates, ensuring a growing supply of affordable models is essential,” said Cox. “For many consumers, price remains one of the most significant barriers to making the switch to electric.”
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In contrast, new EV dealers had an average of 111 days of supply in May. That’s 8 percent more than April, but still 11.6 percent less than May 2024.
The EV market is clearly in a bit of a balancing act right now, with more incentives, lower prices on new EVs, and rising costs in the used market. For shoppers, this creates a window of opportunity to grab some solid deals, but the clock might be ticking, especially with the $7,500 tax credit for new EVs and $4,000 for used ones on the chopping block soon.
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New and Used EV Days’ Supply May 2025
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