American car buyers are being hit by new tariffs – but used electric cars like the Tesla Model 3 and Hyundai Ioniq 5 seem to be doing surprisingly well.
While new cars are becoming significantly more expensive in the United States due to Donald Trump's new tariffs, used electric cars suddenly appear to be among the biggest winners.
As tariffs on imported cars have come into effect, the prices of new cars are rising, but many used electric cars are still without price increases – and this could have an impact on several markets, including in Europe.
An analysis indicates that new cars in the US could become between DKK 17,500 and DKK 140,000 more expensive. That's why more Americans are turning their attention to the used car market. Electric cars in particular, such as the Tesla Model Y, Kia EV6, Hyundai Ioniq 5 and Ford Mustang Mach-E, have become significantly cheaper in the past six months.
According to iSeeCars, the price of used electric cars between one and five years old has fallen between 15 and 20 percent per month since the fall.
This places the average price for a used electric car at approximately DKK 222,000 – only slightly above the average for a similar gasoline car.
Tesla Model 3 and Mach-E at far below new price
Many electric cars that previously cost up to half a million are now on sale for well under 300,000 DKK. This applies to both well-equipped Kia EV6, Ioniq 5 and Ford Mustang Mach-E.
A quick search in the USA, for example, shows an almost new Ioniq 5 SE with only 24,000 km on the odometer for DKK 223,000. The same model cost over DKK 370,000 when new. For the Ford Mustang Mach-E, the price range is currently typically between DKK 150,000 and DKK 300,000, depending on equipment and mileage.
The sharp price drops are not only due to tariffs and inflation. Tesla has been causing price unrest for a long time with repeated reductions, and a wave of leasing cars has now begun to hit the used car market.
Used electric cars can also become expensive again
However, several experts warn that the low price level may not last. If Trump maintains the tariffs, demand for used cars – including electric cars – will increase further. This could lead to price increases across the market.
In addition, the US government continues to offer up to DKK 28,000 in tax credits on used electric cars, making it even more attractive to buy a used EV right now. But the incentive can quickly change politically.
Tesla currently appears to be the brand with the biggest price drop. According to iSeeCars, the Model 3 and Model Y are in many cases cheaper than comparable competitors like Hyundai and Ford.
A Model 3 Long Range with low mileage can be found for around DKK 200,000, which is historically low for the US.
It's not just the American market that's feeling the changes. The price trends could very well spread to Europe – and thus also Denmark, where used electric cars have long struggled with falling prices and low demand.
Tesla models in particular are currently difficult to sell in Denmark, where Elon Musk has created uncertainty among both buyers and sellers.
As new import prices rise in the US, used cars – also in Europe – may become a more attractive solution, especially if developments in the US spill over. Or if the EU introduces additional tariffs on car imports.
For those who are considering an electric car but are hesitant due to price and uncertainty, it may be a good time to act, because the market may turn around.
