New & Used EV Sales Were Up In September In USA – CleanTechnica

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Cox Automotive is an authoritative source of information about new and used vehicle sales in the US. In its latest market report, the company says EV sales continue to expand in the US. The latest data, for September 2024, shows a year-over-year rise in sales for both new and used electric cars. September marked the sixth consecutive month in which new EV sales surpassed 100,000 units. Last month, the EV share of new vehicle sales was 9%, a figure that Cox Automotive called “notable,” and the highest monthly level to date.

The price difference between electric and traditional fossil-powered vehicles narrowed in September, indicating greater accessibility. According to the latest data from Cox Automotive, as the price gap between electric and fossil fueled vehicles narrows, EVs are becoming more accessible to a broader range of consumers, boosted by strong incentives in the new vehicle market.

Before we start dancing in the streets, Cox Automotive reports that EV sales declined in September on a month-over-month basis, but September was the sixth consecutive month in which sales surpassed 100,000 cars. The actual total for September was 107,127 units sold. In the new vehicle market, EV incentives remain elevated, Cox reported, referring specifically to the $7500 federal point of sale tax credit and the federal regulations that allow cars that are leased to bypass many of the battery materials and components restrictions that apply to cars that are purchased outright. The strong showing for EVs in September suggests a 10% market share is within reach for the US market, the company said.

Used EV Sales Are Up

Used EV sales also demonstrated steady growth, reaching 26,626 units sold and maintaining a 1.7% market share. Used EVs remain a small part of the market and have not exceeded 1.8% of total used vehicle sales in any month so far. Some but not all used EVs are eligible for a $4000 federal tax incentive if several conditions are met. First of all, the car must never have qualified for the used car incentive previously. Second, the car must be sold by a licensed car dealer. Third, the sale price of the car must be $25,000 or less.

That last part is problematical. According to Cox Automotive, the average list price of a used EV increased slightly month over month in September to $37,260, yet it remains down 8.4% compared to the previous year. That means the average price is getting closer to the average price of a used conventional car. For new EVs, the average transaction price in September was $56,328 — down 0.5% month over month in September but largely unchanged from a year ago. The average incentive package for a new EV was over 12%, far higher than the industry average of approximately 7%.

Digging deeper into the numbers, the new EV days’ supply — an indicator of how long vehicles remain on dealer lots — has remained stable, indicating a steady demand for those vehicles thanks in part to heavy discounts. In September, new EV days’ supply was 93, up 2% month over month and up 1.9% year over year. The used EV days’ supply is narrowing the gap with the supply of fossil-fueled models. In September, used EV days’ supply was 47 days, while ICE+ was 45 days.

EV Sales Expected To Accelerate

According to CBT News, the ongoing growth in the EV sector, alongside stable inventory and decreasing prices, suggests a bright future for both new and used electric vehicles in the US. As manufacturers ramp up production and government incentives continue, EV adoption is expected to accelerate further, it says. That is very interesting, since everybody is claiming the EV revolution is over. Manufacturers are racing to bring more hybrid and plug-in hybrid models to market to offset the supposed slide in EV demand.

That position does not square very well with the Cox Automotive report that EV sales in the US are increasing, albeit more slowly than some observers might wish for. Some prognosticators in the sub-basement of CleanTechnica global headquarters think by the time those new models are actually in showrooms in a couple of years, the next surge in demand for electric cars will be a upon us and those hybrids and PHEVs will be the ones languishing on dealer lots. Predicting the future is really difficult to do with any degree of accuracy.

Dealers Have More To Worry About Than EVs

Cox Automotive tracks data about many aspects of the auto industry, including dealer sentiment. As we reported recently, sales of conventional cars and trucks are down in the US, and that has many dealers nervous. “For more than two years now, after reaching peak profits in 2021, US automobile dealers have viewed the overall market as weak,” said Jonathan Smoke, chief economist at Cox Automotive. “The retail auto business today is working through a lot of uncertainty, with the coming national election front and center, and also expectations of shifting market dynamics. US dealers are feeling the effects of these dynamics in the market today and their expectations for the future.”

The market outlook index — which asks dealers about market expectations three months from now — dropped in Q3 to 42 from 44 and remains below the year-ago level of 45. The score of 42 suggests a majority of US auto dealers expect the auto market to weaken in the coming three months, not strengthen. Franchised dealers, who are historically more optimistic in their market outlook index, had an index score of 49 in the latest survey, marking just the third time in survey history — dating back to 2018 — that franchised dealers posted a market outlook index score below 50. For independent dealers, the market outlook score in Q3 was 39, down from 41 in Q2.

The Cox Automotive cost index reached a new record high in Q3 at 77, indicating a majority of dealerships see the cost of running their business as growing, not decreasing. A high score indicates that dealer profitability is under pressure. “Dealer profitability is one of the central measures in our quarterly survey, as it showcases the core strength of the business,” said  Smoke. “And the profitability index has generally declined for three straight years, particularly for independent dealers. Most dealers feel their profitability picture is weak, and that is likely impacting many sentiment measures, dragging the overall survey scores lower.”

If you are a car dealer in the US, your focus is on declining sales and rising costs, not whether the EV revolution is gathering speed. We have been predicting falling sales of conventional cars for some time now, as high prices for both new and used cars of all types persuade people to keep their existing car a little longer, hoping for some relief from elevated sticker prices. A drop in interest rates may help, but the return of the truly affordable car is still quite a way in the future. Building a wall of tariffs around America won’t help consumers at all.

Read more of our reports on EV sales in the US or around the world.