The Hidden Truth: Why Used EV Prices Are a Secret
Download MP3Introduction: The used EV market is facing major challenges, with electric vehicle prices plummeting by 33% and longer selling times. EVs are growing in popularity year over year, but recent trends in the used market are concerning.
Key Topic Highlights:
- Price Drops: While all used car prices have fallen around 5% (normal depreciation), used electric vehicles have seen a drastic 33% decrease, creating a tough market for sellers.
- Dealer Challenges: Many dealers struggle to sell used EVs, especially in the $30,000 to $35,000 range. As units lose value daily, dealers are feeling the pressure.
- Media & Forecasts: Some media outlets and forecasts may paint a positive picture of EV growth, but there are underlying issues, especially for the used EV sector.
Consumer Behavior: The used EV market suffers partly because buyers of new EVs are typically early adopters, while used car buyers tend to prioritize affordability over innovation or status.
Dealer Strategies:
- "Sell it Twice" Approach: Some dealers attempt to turn used EVs into lease options, selling the vehicle first to an in-house company and then to consumers, to maximize rebates and benefits.
- Floor Plan Costs: When cars sit on dealer lots too long, they incur additional costs known as floor plan expenses, which further cut into dealer profits.
Conclusion: The backup of EVs on dealer lots is creating financial strain. Have an opinion on this topic? Let us know in the comments.
