On average, used electric cars are now cheaper than used gas cars.

Sticker Shock

Prices for used electric vehicles are falling off a cliff, dipping well below those of their gas-guzzling counterparts.

As CNBC reports, used EVs are selling for thousands of dollars less than they used to, with consumers increasingly rejecting "premium" pricing status for the once-buzzy vehicles.

According to the latest data from car search engine iSeeCars, it's the first time prices of used EVs have dropped below those of used gas cars — and the gap is expected to widen.

"While electric vehicle values appeared to stabilize at the end of 2023, they experienced a substantial drop this year in February and have continued to decline over the past four months," iSeeCars' report reads.

"It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable — and less valuable — than traditional models," iSeeCars executive analyst Karl Brauer argued in a statement.

Deals, Deals, Deals

It's the latest sign that the EV market is experiencing a rude awakening. There could be several factors at play, with consumers becoming wary of degrading batteries and the lagging development of charging infrastructure. Sky-high interest rates could also be dampening demand, especially for more expensive EVs.

Tesla CEO Elon Musk has also greatly contributed to the trend, cutting prices of the carmaker's offerings on several occasions last year. His abrasive behavior has also served to tank Tesla's reputation, scaring away potential buyers.

The EV maker, once touted as the most important car company in the world, has seen sales plummet this year, and shares are down over 25 percent year to date. Recent satellite images revealed that production is outpacing demand considerably, with unsold stock piling up at factories and dealerships.

Prices for used Teslas have also plummeted, depreciating a whopping 28.9 percent on average in a single year — faster than Maseratis or Alfa Romeos, which are notorious for losing value — according to a previous study by iSeeCars.

Meanwhile, carmakers are turning their attention towards hybrid vehicles, which combine the gas savings of a partially electric powertrain and the accessibility and convenience of a fuel tank.

Could this really be the beginning of the end of EVs — or are they "becoming more normal," as InsideEVs suggests? While demand for "premium" offerings is tanking, consumers have more access to cheaper alternatives than ever before.

Others see it as a glass-half-full situation, with Autoblog arguing that consumers might want to strike while the iron is hot — because there's no denying that there are some killer deals out there right now.

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