Are Used EVs Stalling or Selling?
Download MP3 Focus of News Coverage in EV Industry:
- New electric vehicle models (e.g., Tesla updates).
- Developments in subsidies and rebates.
- Lack of coverage on the used electric vehicle (EV) market.
Understanding the Used EV Market:
- Market Size:
- Limited data availability and visibility in the used EV market.
- Experian’s study on financing reveals key insights.
- Financing Statistics:
- 60,000 pre-owned EVs financed in 2021 (~1,000 per state).
- Early 2022 data showed 42,000 financed by summer, potentially reaching 70,000–80,000 for the year.
- Still relatively low volume compared to traditional vehicle markets.
Reasons for Low Transaction Volume in Used EVs:
- Production History:
- Mass production of EVs began in the late 2000s, with significant volumes only around 2015–2016.
- Limited supply of older EVs in the used car market.
- Consumer Behavior:
- EVs often serve as secondary or tertiary vehicles, leading to longer ownership periods (~6–7 years vs. 3–4 years for primary vehicles).
- Future of the Used EV Market:
- The next few years (2024–2025) will likely see significant growth in the market.
- Key factors include increased trade-ins of older EVs and evolving consumer preferences.
Considerations for Buying a Used EV:
- Pros:
- Cost savings.
- Longer lifespan of electric motors compared to internal combustion engines.
- Cons:
- Importance of checking battery health.
- Potential preference for newer models with advanced features.
EV Longevity vs. Gasoline Vehicles:
- EV motors last longer due to minimal wear (magnets spinning instead of internal combustion).
- Battery health is a critical factor in determining an EV’s remaining life.
- Engagement Question:
- Would you consider purchasing a used EV?
- Do you prioritize cost savings or prefer newer models for reliability?
- Share your thoughts in the comments!
This episode dives into the lesser-explored world of used electric vehicles, examining their market size, unique challenges, and opportunities for buyers.
