Report Shows Used EV Market to Double
As the auto industry prepares for surging interest, Recurrent closes $16-million Series A investment to add transparency for EV batteries and values.
A used electric vehicle (EV) will be sold every minute in the U.S. according to new data from Recurrent, the leader in used EV analytics. This milestone, expected by late 2024, marks an increase in sales volume of roughly 100 percent over 2022 and 40 percent over 2023.
Recurrent’s newly released Q1 Used EV Market Report identifies two primary catalysts for the growth of the used market.
- Longer range models are entering the used market in larger numbers, including a substantial number of the roughly 300,000 Tesla Model 3 sold in the US between 2017 and 2019.
- The rebates that launched this week now offer up to $4,000 back at the time of sale, compared to year-end tax credits in 2023.
“Our market indicators suggest that we are at the start of an inflection point for used electric cars in the U.S.,” said Scott Case, CEO of Recurrent. “Shoppers no longer need to choose between range and affordability. A used EV shopper can drive home in a Tesla for less than $25,000.”
Recurrent’s $16M Series A Round Funds Growth
Capitalizing on this market momentum, Recurrent announced today that it completed its $16 million oversubscribed Series A funding round, to scale out its industry-leading used EV battery reports. The funding round was led by ArcTern Ventures, with additional investment from Automotive Ventures, Goodyear Ventures, Wireframe Ventures, Pioneer Square Labs and others.
“Used EV value is unequivocally driven by a vehicle’s range and battery,” said Ian Pinnington, partner at ArcTern Ventures. “ArcTern conducted extensive primary research to develop the high conviction that Recurent’s data-driven solution is not only the right approach, but is in a standalone market-leading position. As Recurrent continues to become a standard in the used EV ecosystem, we believe the company will inform all used EV transactions.”
Other Used EV Market Accelerants
The launch of federal point-of-sale used EV rebates is the other key market accelerator for 2024, but one that is expected to be variable at first.
Rebate eligibility is dependent on dealerships signing up with the government, and while over 7,000 dealerships had registered their company with the Department of Treasury, a much smaller number of dealerships are actively providing the point-of-sale used EV rebate, according to a Recurrent survey. Only 7% of the roughly 200 dealerships contacted in December 2023 confirmed that they had taken steps to participate.
Used EV shoppers can find a list of registered dealerships and check rebate eligibility on the Recurrent website for free, in addition to checking the expected range on thousands of used cars. Range information, including links to full Recurrent Reports, can also be found EV listings on Edmunds.com and Cars.com.
“As a used EV shopper, you definitely want to get this $4000 discount, but the rules aren’t straightforward – which dealers, which vehicles and which buyers qualify,” said Case.
For more information about point-of-sale EV rebates, visit Recurrent’s EV tax credit guide. General questions about Recurrent can be sent to contact@recurrentauto.com.
