Electric vehicle sales dipped in the second quarter, despite record incentives and a growing model lineup. The market braces for a federal tax credit phase-out that could skew sales trends.
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June figures show that for the first time this year, days’ supply of used vehicles is nearly flat compared to levels seen in 2019.
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Enough vehicles are sitting on lots as vehicle days’ supply hovers above last year’s levels, and sales volume lingers well below available inventory.
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Auctions are seeing a drop in off-lease and off-rental vehicles, but overall sales for the first half of the year are still pacing ahead of 2024 levels.
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The inventory expansion started with auction events in South Carolina and is moving to locations in Ohio and Nevada.
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Wholesale appreciation trends have been more volatile over Q2 as tariffs affected new sales and supply, and the used marketplace.
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Rental fleet sales stand out with continued increases year-over-year and year-to-date but no longer prop up the fleet segment.
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The electric vehicle market looked like a grab bag of trends as industry pressures and market dynamics shift.
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A mixed sales bag included gains at dealer auctions from trade-ins, a spike in used EV sales, and a spurt in 1–2-year-old vehicles from rental fleets.
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The key metrics of the used vehicle market are either slightly down or barely up, but affordability remains a challenge.
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