The Expert Podcast

It looks like the verdict is starting to come in on EVs—at least in the current market for electric vehicles. Buyers are not lining up in droves to purchase these EVs, and electric vehicles are starting to pile up in inventory, not only new but used as well. Here's an example of where used electric vehicles are starting to be stored. Look how long they've been here—some have weeds growing on them. This is happening in another country, but the same trend is starting to occur in the US.

It's also starting to put a crimp on new car sales. Hear me out: if you are looking at a new electric vehicle, one of the things you're concerned about is the resale value, right? If your electric vehicle is going to be worth nothing in three years, why buy it? Even if you save money on the price—which you don’t because they cost more money—even if you save money on the fueling—which you don’t because electricity costs more—you’re also going to lose money on depreciation.

Gasoline vehicles, on the other hand, are through the roof. There are some vehicles that are one or two years old that are still selling for what they did brand new. Electric vehicles, however, you can’t give them away.

Until the market demand and public acceptability make electric vehicles more desirable and appealing—especially in the used car market—it’s going to be a tough sell to achieve adoption as quickly as they want. Unless they eliminate the option of even buying a gasoline vehicle, this challenge will remain.