Following in the steps of the new-vehicle market, electric vehicle (EV) and pre-owned cars saw increased sales for the month of May.
The average transaction price (ATP) paid for an electric vehicle in May was $56,648, which is 2.6 percent higher than in April. EV ATPs in May were approximately 17 percent higher than the industry average ATPs.
But inside those numbers tell a different story.
The gains were driven by Tesla as industry-wide EV prices in May were lower year-over-year by 4.1 percent, according to estimates by Kelley Blue Book. EV incentives continue to run much higher than the overall market averaging 12.4 percent of the ATP in May, up from April and 5.7 percentage points higher than the industry average.
Tesla Gains
A bellwether for the sector as it accounts for over 50 percent of sales, Tesla prices are estimated to have increased by 3.1 percent month over month to $57,369 in May. Prices were higher from May 2023 by 1.5 percent.
Since January, when Tesla ATPs stood at $51,892, the EV maker’s average transaction price has increased by more than 10%, lifted in some part by growing Cybertruck sales—an estimated 3,000 were sold in May—with an average transaction price of $108,667.
KBB officials noted EV prices peaked in the summer of 2022, during the last gas price surge, and have since generally been on the decline. EV prices have gone back and forth in 2024—falling in March before increasing again in April and May.
Pre-owned Market
As for the pre-owned markets, sales in May increased from April by 15.9 percent. A total of 1.62 million used vehicles were sold at retail—from both franchised and independent dealers, according to an analysis of Cox Automotive.
Inventory by days’ supply at the start of May was 48, up from a revised 45 days at the beginning of April. Thanks in part to a pick-up in sales, used-vehicle inventory at the start of June had dropped back to 45 days’ supply.
“Following a less-than-spectacular spring selling season, May used-vehicle retail sales rebounded to the highest level so far this year,” said Scott Vanner, senior analyst of Economic and Industry Insights at Cox Automotive in a press statement. “In fact, used retail sales volume is higher than any month since March 2022, when tax refunds were juicing the market.”
Both overall retail used-vehicle sales and sales of certified pre-owned (CPO) vehicles increased month over month in May, according to data reviewed by Cox Automotive. CPO sales in May were up 2.8%, or over 6,000 units, compared to May 2023. CPO sales last month are now estimated at 225,704, up from 209,265 in April, an increase of 7.9%.
Year-to-date total CPO sales volume is higher by 0.7 percent compared to last year.