CarMax, the largest used-car retailer in the U.S., has seen a significant increase in interest in electric vehicles (EVs) among used car shoppers. The company’s annual report on EV shopping trends reveals a 177 percent increase in monthly search volume for EVs on their website over the past three years. This spike in interest is attributed to the rise in average gas prices, with a notable surge in EV searches coinciding with the increase in gas prices due to the conflict in Ukraine in 2022.
The top three most-searched vehicles on CarMax’s website from September 2023 to February 2024 were the Tesla Model 3, Tesla Model Y, and the Nissan LEAF. These vehicles have seen their used values drop by over $5,000, with the average price of a used LEAF now below $19,000. The report also highlights a shift in consumer interest in EVs, with new additions like the Volkswagen ID.4, Audi e-tron, Chevrolet Bolt EUV, and Hyundai Ioniq 5 making it to the top 10 list, while previous favorites like the Tesla Model X, BMW i3, and Jaguar I-Pace have dropped off.
Notably, the Tesla Model 3 is the best-selling EV at CarMax’s retail stores, with customers most likely trading in vehicles like the Honda Accord, Ford F-150, and Jeep Wranglers for the Tesla. The Ford F-150 and Honda Accord are also the top trade-ins for EVs, indicating a trend towards transitioning from combustion vehicles to electric ones. California remains the leading state in the nation for EV popularity, with tax incentives and high inventory levels contributing to its strong EV market. Oregon, Washington, Nevada, and Idaho also rank highly in EV popularity.
CarMax’s report provides valuable insights into the changing landscape of the used car market, particularly in relation to electric vehicles. With a growing interest in EVs among consumers, it is evident that factors like rising gas prices and environmental concerns are driving this shift. The success of the Tesla Model 3 and other EVs in the used car market points to a promising future for electric mobility, with more options available to consumers and increasing affordability due to declining prices of used EVs. As the EV market continues to evolve, CarMax remains at the forefront of providing customers with a wide selection of electric, hybrid, and combustion vehicles to meet their diverse needs and preferences.
