Used EV Prices Are PLUMMETING By OVER 30%: Here's Why It's Happening!
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- เผยแพร่เมื่อ 11 มี.ค. 2024
- ( www.alltfl.com/ ) Check out our new spot to find ALL our content, from news to videos and our podcasts! A new iSeeCars study looked into pricing on 1 to 5-year-old used EVs...and the results are eye-popping, especially in light of Tesla's recent price cuts on its new vehicles. Kase and Alex cover what's going on in this video! LINK TO STUDY -- www.iseecars.com/used-car-pri...
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#electric #price #car - ยานยนต์และพาหนะ
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Are we car flippers or consumers. We should be glad to see new and used auto prices dropping.
New will drop too. People don't have money to buy new
I have 3 of the top of this list, Bolt, Nero EV and 3, happy prices are going down.
@@martialman.4563 If you keep your vehicles for long time you don't care about price since you're a happy for other folks to drive and enjoy those cars which are good value.
As a consumer, you would be looking to sell, before buying. Usually, you try to get the best price for your car.
@nevco8774 Indeed, the Niro EV will be for sale soon so another person could get the used tax credit. Bought the Bolt used in Jan so most of price reduced already.
Weird this is getting negative press, a few years ago they were like "in a few years these will be affordable! It'll be great"
Now theyre getting more affordable, so the chronic whiners smoothly transitioned to complaining about how little EVs sell for.
Some people are ready and willing to complain about both sides of the same issue.
You are Conflating the new price being way too high, which it still is, with the massive loss you get when trying to trade or sell your overpriced BEV. Go ahead and double down on stupidity.
New EV prices are way down compared to a few years ago@@robertkubrick3738
The anti ev crowd is pointing to this as a reason why EVs are horrible to own.
@@JD-sb4ss Might not be what you meant but that is exactly what you described.
@@ColeSpolaricbuying a car thats considerably more expensive than an ICE counterpart that then depreciates significantly faster isn't a downside? That makes me "anti EV?" The fact that I can replace an engine AND transmission 2 or 3 TIMES for the cost of 1 battery replacement somehow makes me "anti EV?" What do you think the market is for used cars? It's not a consumer that can buy a 10 year old car and then turn around and drop $20-$30k on a battery. And that's the rub, its not just miles but age that works against an EV. A 10 year old 150,000 mile Camry that was $28k new is worth more than a 10 year old EV with 50,000 miles that was $100,000 new. Don't be upset that people can logically conclude what a bad deal an EV is. And that seems to be the stance for people that have ridiculous views countered by simple logic - the logical person is "anti". EVs only make sense if you can charge at home and plan to own the vehicle until it dies - which it is reasonable to expect it will last 15+ years and 250,000 miles. But you do not want to be the person buying a 6-8 year old EV unless you can buy it well under $8k - regardless what the original msrp was.
It is a correction for inflated prices to start with after price increases with covid supply chain issues. I bought one of the first 5k model y’s for 49,900 in 2020. Then the prices shot up by like 10k for a couple years. Now I just bought a new 2024 model y same dual motor configuration for 38k after 7500 tax credit and 1000 discount for having a cybertruck order…so used prices have to adjust or everyone will just buy new
Used BEv aren't selling anyway.
@@robertkubrick3738 spot on. Means they aren’t cheap enough yet😀so more price drops to come
@@robertkubrick3738 That has more to do with used car dealer pricing than buyers. CarMax is selling used Tesla Model Ys for more than the cost of a new one, when you take into account $7500 tax credit that now comes off the sticker price at point of sale.
@@jasoneckert6353 That will make life difficult even for tesla. 2024 tesla is in for a very hard year.
Isn't this what we wanted from the beginning, this is great news guys prices are coming down.
I guess I'm weird. My car buying decision isn't based on future value guesses/depreciation. It's a depreciating asset. I buy for what best fits my needs at a price I can afford now. I also tend to drive a vehicle a long time before selling/trading it. At that point, most everything has significantly depreciated. It really only matters if you trade often or you're a fleet/rental car buyer.
I do the same! So you're not weird, or we're both weird together. I kept one of my vehicles for 16 years until it was taken out by a deer. I usually get well over 100,000 miles on my vehicles. I also tend to stay away from "luxury" brands and focus on buying reliable low total cost of ownership vehicles to fit my needs.
Same, I cannot comprehend buying a vehicle based on some future value unless we're talking collectibles.
@JenniLudes You're an optimist. Many don't see EV batteries as serviceble long term - lack of data
I’ve only purchased used cars over many decades, typically driven several years - 150- 225k miles because I didn’t want to pay the high depreciation of the first few years. I don’t have the same confidence in EV cars because of likelihood of battery failure after a few years. The stories about very high cost of battery replacement point to these cars getting scrapped long before the typical conventional vehicle- value almost nothing. Couple with the sparse charging infrastructure situation that will take some years to solve- used EV vehicles are just going to be worth less .
@@timothykeith1367 My comment wasn't EV or ICE specific. Just cars in general. I buy what suits my needs and budget and drive them for a long time until they no longer meet my needs or become too expensive to maintain. Future depreciation isn't a factor for me. They're ALL depreciating assets.
I fully expect EV prices to stabilize and potentially increase again depending on gas prices - that's the big unknown here... Even though I've lost value on my EV6, I'm actually happy that prices have dropped for EVs, as it makes them more affordable for a larger percentage of the population. Having said that, when I bought my EV6 two years ago I fully expected to own it for 8 to 10 years. As such, the current price of EVs are irrelevant for me.
I think the is a well needed correction after COVID. Hard pill to swallow for owners of newer EV's but great bargains to be had.
Yeah, it was crazy hearing stories of people selling or even TRADING IN a year or two old Tesla for just about the same price as a new one.
@@volvo09 I bought a Spark EV right at the beginning of the pandemic. Drove it for 18 months, then sold it to Vroom for $3K more than I paid for it!
Just beware the fast-evolving battery tech and charger connections of this new technology & the risks that presents to make your 1-2 year old model outdated and vastly less desirable compared to newer models that get better range, charge time and thus appeal to a wider market.
@@RT-mv7df As of recent, that does indeed seem to be the case. EVs are VERY comparable to laptop PCs in that regard.
Just picked up a 2019 Bolt EV 1 owner 40k miles. Florida. Paid $13,500 and received the used EV tax credit meaning final car price was $9,500 before taxes & fees. Absolute steal! Just had the battery replaced a few months prior so it's basically a new car underneath.
Very happy with my purchase and it's an awesome commuter car.
We have a 2020 Bolt and absolutely love it. In many ways, it is better than our 2023 Tesla Model Y. And if you factor in the cost paid for each, the Bolt is a miles-ahead better car.
I am so so sad,we dont have the Bolt in Europa!
Awesome
It's called Opel Ampera-e over there@@brunoheggli2888
I've been eyeing the used bolts too. Screaming good deals right now. I work from home now though and just can't justify it, in spite of the great deals. Glad to hear people are starting to snag them though.
Aren't falling prices a good thing?
Lower prices yes, dramatic depreciation in less than 5 years not so much.
@@BimmerBroswhy not? Sounds like there are some great deals to be had on 3y old Teslas.
@@anonymousfu as long as it’s still under warranty, have to treat it like buying a second hand luxury car even though it’s more like a JEEP in the sense that unless you’re doing your own labor or have deep pockets with money burning holes through them you Just Empty Every Pocket.
@@BimmerBros Tesla warranty for a Model 3 RWD is 8y/100000miles. Odds of battery replacement of a Model 3 is 3/1000, so far. Of course, the oldest Model 3's are only 6y old or so. Odds of an EV battery replacement overall are 1.5%, but that includes older models with inferior battery technology. Overall I'd say an out-of-warranty battery replacement is a low probability, high cost event. Buyers should consider that and make the decision for themselves.
@@anonymousfu You'd buy one? lol
The rental EV's being dumped into the market pushed prices down.
Top one on the list is the Bolt and Hertz in my area is selling a lot of them.
Not really. The vast majority of the EVs Hertz dumped were high mileage standard range Tesla Model 3s, that were out of warranty. It did severely increase the number of used Kia EV6s though. You can get a Wind AWD for just over $30k. That's an incredible deal.
@@l10industries Bolts have been cheap since early 2021. I bought a brand new Bolt in 2021 for $23k with no tax credit, and used ones with low miles were selling for $15k.
A correction had to happen. In 2022 I sold a Chevy Malibu to CarMax for more than I paid for it after driving it for 43 months. That was a once in a lifetime experience and I expect used cars to get back to normal.
Cars are depreciating assets get over it they aren't investments.
New EVs are coming down to normal levels because the price of lithium is down 70% from its peak.
This is great news. More people can afford EVs.
The other thing to keep in mind is that more affordable EVs have been hitting the market. At one point an EV cost you $100k now you can get entry level EVs for much less. As those it the used market we see drops in the mean.
Also, as you point out, Tesla dropping new prices affects resale. Teslas are the market drivers right now.
EVs were launching new during pandemic and supply shortages. Used sales were above new. This clearly didn’t make sense and as a result we are seeing a return to normalcy.
Lastly we have media telling people that no one wants EVs and that the batteries will need replacing at 6 years for $60k. People generally aren’t critical thinkers and are happy to just take headlines at face value.
So in summary. Great news for savvy EV buyers willing to buy 1-3 year old vehicles.
And reusing used EVs costs less energy and resources than building new ones.
So the decreasing cost of used EVs relative to new EVs and ICE cars can be viewed as a benefit
And we don't even have the 2's yet, the Tesla Model 2, id.2, Ionic 2. I might not have all those names right, but more affordable EVs are actively being designed and engineered.
I've never seen a news report saying they will need a $60k battery in 6 years. But consumers do know the batteries tend to have 8 year warranty and $20k-$30k replacement costs. And you need to consider the age of the battery when buying and that will always have a drag on used EV prices. People seem to not consider who the market for 10+ year old cars are. You certainly don't want to be the consumer that pays a premium for a 10 year old EV. Which means you also dont want to be the consumer that pays a premium for a 3-4 year old EV that you will want to trade/sell 4-6 years later. Which also means you don't want to pay a premium for a new EV. There is no EV worth $10k once they hit 10 years old, its just a matter of when people figure that out, and its happening sooner than later.
@@TheNotimprezed The battery is exactly the reason I would stay away from buying a 3-5 year old EV. If I want to keep a car for 3-5 years then I know the resale will be much less with a battery that has a lot more degradation and chance to fail when it reaches 10 years old. People know this and that will set the market value for used EVs People go on and on about million miles on an EV battery and while that can be the case for some that are kept within 30%-70% state of charge a used EV could have anything done to the battery from previous owners including cold or hot weather degradation and supercharging degradation. I've seen plenty of videos where owners had the EV battery replaced under warranty and it wasn't even showing much percentage of degradation. So why take a chance on a used EV.
Sorry didn't complete my thought... I meant why take a chance on a used EV unless the price was low so the battery expense can be offset if you need to replace it. I wanted an EV a couple years ago. But with electricity on the rise everywhere and tier rates coming for home charging I won't pay for the battery to hold the fuel and also expensive electricity to fill it!
I bought a 2017 BMW i3-REx, August 2023, for $15,000 and consider it a steal. Bought from a Toyota dealer in Florida, they didn't know what they had. My benchmarks show 106 mi EV range and 88 mi gas. With a short wheel base and high power to weight, is the perfect urban car.
As for my 2019 Tesla Model 3 Std Rng Plus, the $6,000 Full Self Driving continues to improve and with a replacement cost of $12,000, it makes it too valuable to sell. It has over 129,000 mi and ~10% battery degradation, 240 mi down to 215 mi.
Junk
i3 is a cool car w/the carbon shell. My wife thinks it is too small for traffic here in Las Vegas. I hate the pizza cutter tires. How is the insurance with that carbon structure?
Are the resale values weighed against original msrp or actual purchase price including rebates?
Very good point
MSRP of course cause not everyone one would qualify for the rebates and also not every vechicle qualify for it either.
An analysis of used EV prices relative to new EV prices would be much more interesting. I bought a new Bolt EV because used models in my area were selling for not much less than buying a new one after the tax credit.
I'm in Canada, and we don't see the same type of discount for EVs as you have seen in USA. Let me start by saying that we had already an EV rebate all along, so the prices for new EVs were already lower than the USA market. For instance, the lowest price for Model 3 (the RWD) in Canada was around $53k CAD (about $39k USD), but in certain provinces (QC or BC) this could get down to around $40k CAD (about $30k USD) before taxes (which are a little high, about 15%). So already the prices were low on the used EV (these rebates only apply to new EVs). But we don't have the same market as you in terms of volume, so this is also a factor. However, I noticed that the used Nissan Leaf and Chevy Bolt get heavy discounts, the first because of the Chademo and the second because of the fire trouble with the battery (largely solved for now, but insecurities have already played a role). Also, most models from the Korean makers are getting a little cut, but this is probably due to the imminent arrival of the NACS plug. Tesla had a little less drop in price than in USA, since we didn't have the benefit of Hertz showering the market with used cars.
For instance, the cheapest Bolt I could find was around $17k with a very high mileage, but a mildly used one costs only 18k (all prices in CAD)
The Leaf 2nd gen (so 2018 and up) is sold at $13k with high mileage (out of warranty), while $16k is a more common price for a car with the battery still under warranty.
As for the Tesla Model 3, the cheapest I could find is around $22k CAD, with very high mileage and a very old one at that (2018). A newer better model is around $27k.
I forgot to mention that in some provinces there is a small rebate (up to $3.5 k) for a used EV under some conditions (year and range), and that will keep the prices up a little (deals to be made, right?)
Thank you for those great insights, and even showing how changes in the federal government can have swinging changes that may not be able to happen over time
BC waves PST on used EV
@@3crowsfarm16That is much better than the QC rebate ($3500 ). First of all, it's only applied once for the lifetime of the VIN, it's only given when bought at a QC dealer, and both new and used sales must happen in QC (So if you bought it new in ON and then sell in QC, the rebate is not going to be applied)
I just ordered a new model Y because I thought people wanted too much for their used Tesla's. I pick it up this Saturday. 😎
Gas vehicles are dropping at the same rate if not more. It is basic economics. Rates rise to fight rising prices. It will always ebb and flow!!!
So an EV lost $14,418, but here in Colorado, the buyer received $12,500 in tax credits. My math says that the car only lost about $1900 in value.
Except the car most likely wasn't in a low population state.
@@robertkubrick3738 The largest market for EVs in the US is California, our largest state. California was offering rebates of as much as $7,500 on EV purchases in 2023, until the program ran out of money in September.
@@robertkubrick3738 - Do the math using the credits offered by your own state. Add that credit to the $7500 offered by the feds (in most cases). In any case, the reason that it appears that EVs depreciated by large amounts is because the prices reported are much higher than what people actually paid.
@@chiplangowski3298 More states than not don't offer credits.
@ California where they tell you not to charge them?
Tesla Model Y is the best-selling car in the world, while the Tesla Model 3 is the 3rd best-selling car IN THE WORLD. In the EV space, Tesla is making it very difficult for the rest of the industry. Tesla controls the largest/most reliable charging network and they control costs through in-house manufacturing. So look for further price drops and that's before their $25K car is announced. At this point, it's really Tesla, and the Chinese and everyone else are just watching...
It’s the inflated prices of EVs back then, a Ford lighting was selling for 100k and now no one wants them, they just keep stock piling them up in dealer lots.
I'll take one. Which dealer has the biggest pile?
I don’t see the price drop as the news story but the real news, used EVs hit cost parity to ICE! That should help the secondary market to explode in EV ownership.
Auto insurance needs to be factored in and in certain cities and with certain drivers it’s not feasible or offered. Even if the cost was same, charging and driving habits come into play making some locations ideal and others a never go. Sure sales are still increasing, but not at a rate that will propel these types of vehicles into that many homes or challenge ICE vehicles…at least not at the current tech. Maybe in 10 years it’ll be different…maybe we’ll have ICE, EV’s, etc all living in harmony. Choice is a wonderful thing.
Hertz coming off their entire EV fleet tanked that market a bit.
Actually it was a third, which they sell after 2-3 years and 50-90K miles like ICE cars. Just normal rotation.
@@jamesvandamme7786 it’s a shame really. I’d be curious to see how long those cars last under what would be the most extreme conditions they could face. Kept charge at high state, mostly supercharged, driven carelessly lol
@@floodtheinboxI've been shopping but the Hertz cars were snapped up quick, and they were pretty high price. I don't know what the battery health was like.
My car is a Hertz retiree, been running it 8 years now.
There was a huge inflation of car prices, especially used ones including EVs during the pandemic and the following inability to build cars due to lack of chips for well over a year. Isn't this just a market correction now that supply channels have been reestablished? It also seems like the percentage of price drop on EVs is including the tax credits. What happens to the percentage when you take the credit out of the original price? You can't talk about price fluctuations in a vaccuum.
I paid $68K for a Tesla, now worth only $38K 15 months later. Now I'm paying 20% more for electricity than last year, what a huge mistake. ☹☹
Many people are taking a bath now as prices for many (both EV and ICE) vehicles are now crashing after the insane COVID dealer markups.
If you had $68K to spend in the first place I don't feel sorry for you at all .
@@callumcurtis15 I think you echoed the thoughts of many...
The value of the car doesn't matter until you sell it..🤷
Makes sense with battery degradation and the odd one that needs replacing with massive cost when its out of warranty that 2nd and 3rd owners will see continued resale value loss.
We purchased our 2023 Model 3 as transportation not as an investment. We keep our cars for a long time. We still have our very reliable 1997 Honda Accord DX.
If you aren't calculating in the federal tax credit into the price of new car, then your resale value will be woefully off. If the Tesla Model Y long range has an MSRP of $48.9k, but buyers get a $7500 tax credit. Does the buyer lose any value if the car is resold for $41.4k? The answer is NO!!!!!
Many EV naysayers who earlier said they would never drive an EV are now seriously looking at used EVs -especially now that 3rd party ev battery rebuilders are popping up to repair 10 year old batteries for much cheaper than buying a new battery. Over the longer term this means many more people able to bypass the current anti-EV media and new car dealers and see for themselves if EVs are right for them and not take a $20k hit right off the bat.
I bought my Tesla Model Y Performance at the end of last year when they offered a big discount. Plus I got my $7,500 tax credit. And I keep my cars for 7+ years. So, I’m not as concerned about the price drop as those who buy a new car every 2-3 years.
Most of the vehicles on that list have just received a refresh/redesign which also contributes to the massive reduction. Tesla reducing their pricing multiple times does not help within their own brand either.. once you start cutting your costs the used market follows, once there's a redesign also contributes
I think the Bolt is the best used car deal in EV right now, if you don’t need a road trip car. I just picked up a 2020 with 20k miles, battery recall complete, for $10,400 OTD with the $4k used ev tax credit. That’s a screamin deal for basically a new car with 259 miles of range. I just literally couldn’t pass it up. And I LOVE driving the car, the EV daily driving experience is so much better than ICE.
In this car would be just fine for road tripping too
@@RedRyan Except you lose 100 miles of range highway at 70mph. You get less than 100 miles between chargers if you do the 20%-80% charge.
@robertkubrick3738 you don't loose anywhere near 100 miles of range at 70mph... we have the exact same vehicle. Maybe if it's 20°F outside and the heater is cranked to high the entire way you'll loose 70-80 miles total, otherwise a regular weather day, 70mph I can easily still get 250+ miles
Nice deal,great car!
@@Nathans_Margarita_Salt I watched a real world test on closed track of about 10 different BEV, cool not cold, scattered rain, heater set to 68 degrees, from 100% charge to no longer moving. The Tesla did best losing only 100 miles of range. Those are real world conditions. I'll take their word over yours any day. Testing ten cars they had over $1 Million invested in the test, cars, drivers course time, recovery trucks.
I guess like the other poster said I'm just a weird outlier. I don't really care because I love my Model 3 Performance, had it for 5+ years, even though I'm casting a lustful eye at the new Performance Model 3, I probably won't upgrade, and I'll keep this for another 5 to 10 years. Free unlimited supercharging, amazing reliability, great fun to drive, incredibly low cost of ownership and virtually no maintenance. When it's not plugged into the free unlimited supercharging we plug it into our solar. If I do get a new car I'll just give this to another family member who will also enjoy free unlimited supercharging. Although the car was very expensive and now is not worth nearly as much I don't care! What is there to complain about? This car ticks every box.
This is actually exactly what we need for more mass EV adoption. Big difference paying $40k vs $20-$25k
I guess technically that's true but it is also just wish and pie in the sky thinking why we need more adoption is to get the prices down the way you going to get the prices down is to have more adoption but the reality is that the market is showing you probably a couple things that there was a bit of a big trend and a lot of early adopters it might even be 10 or 20 for some of the market forever but maybe not the whole market people have a lot of fears about charging and then the biggest duh moment is all manufacturers announcing November of 2023 that all the cars that they have built already and have planned for a while are built with the wrong charge connector and going to need adapters forever who wants to buy that?
We have to ban cars!
@@brunoheggli2888Go move to Mackinaw Island. Watch where you step on the roads.
I bought a new Bolt EUV a month ago for $2k under MSRP, and also got the $7,500 tax credit. I felt like it was a pretty good deal.
I love my Polestar 2 but knew this was going to happen and leased mine. The value of those have depreciated like more than 50% shockingly
In the Tesla community, Tesla price drops are typically couched as masterful stratergic move by Elon aimed at destroying the competition. Yet price drops by other OEMs are couched by the Tesla community as sign that nobody wants those EVs 😊
Ford Lightning had almost 200,000 reservations back 2 years ago. IMO, the bottom fell out due to widespread dealer gouging. My local Ford dealer was adding $10-20K on the MSRP. I was chuckled out of the showroom when I came in thinking my unit was going to be what price I ordered. Online story after story was written from pissed off consumers. Then Ford decided to raise prices $10k. I was just one of 100,000 orders that got cancelled. I was paying cash and left my dealers showroom pissed off also.
The dealers in turn just sold the cars now that they were on the lot.
Great video with lots of data and great presentation guys.
Something everyone seems to forget is this, during the ‘chip’ shortage every dealership was adding a price adjustment to the MSRP to each car. This was not included in your report. Tesla never did this but had to increase the price like everyone else. So the correct comparison is almost impossible since no one paid the same price at the dealership for the same car.
Tesla simply raised their MSRP. In 2022 the Model Y LR went from $50k to $60k. The reason Elon gave was "great Demand and supply Shortages" That's classic price gouging.
I bought a bolt two months ago. The price fell a ton since and I'm not even mad. It's such a great value
Bought a 2017 dealer sale on Bolt EV.$10480 total.
New battery 100000 mile warranty 8 year.
We had a very, very hard time getting rid of ours, dealers didn't want it, said they can't sell them either. Had too sell at a huge loss. Finally went back too Gas Car
What’s the latest on the last i3 Rex?
🔥☕Happy Tuesday Kase ,Alex and Everyone out there...
Now all we need is a drop in insurance prices to match. Leaf's and Mach-E's seem relatively affordable to insure and hover around $800-900 per year, but used Tesla's are still through the roof ~$2200-2400 per year to insure depending on the model.
Why is that?
@@MechayaAlta I wish I knew, I’ve been told that one of the reasons is that parts are more expensive to replace for Tesla claims after collisions. Outside of that, I can only guess that the Autopilot crashes and battery fires we see in the news might be contributors as well.
What I find odd is that compared to other used near-luxury/luxury EV’s from Mercedes and Rivian, the Tesla’s still cost more to insure. Such as the Mercedes EQB (~$1300 per year) and the Rivian R1T (~$1400 per year).
@@MacDeLorean a Mach e is cheaper to insure than a similarly priced Tesla Y? Can it be the body work?
The cheapest Tesla Model S I can find on autotrader by a private seller are 2013/14, about $11-12k with up to 260k miles. Is this with the price drop, or will they drop further than this?
I purchased my 2018 Tesla Model X for $50,000, which totaled around $57,000 with fees and taxes, about 14 months ago. Over this period, we've driven it for 12,000 miles and faced continuous repairs and tire replacements, amounting to an additional $12,000 investment. Consequently, the total investment now stands at $69,000. With the car consistently encountering various issues, maintenance costs have averaged close to $1,000 per month. Due to these ongoing challenges, we've decided to sell the vehicle.
Despite having rectified all previous issues, and maintaining its pristine condition both inside and out, we're astonished to find that the highest offer we've received for the car today is only $21,000. This represents a staggering loss of $48,000 in value and invested funds within just 14 months. Clearly, purchasing this car has proven to be one of the poorest financial decisions I've ever made.
There is a dealer here in Vermont that has 56, 2023 CHEVROLET BOLT EUV's for sale at $21,999 each. Mileage varies from 3K to 18K.
I'm glad prices for EVs are coming down! I'm currently driving a 2002 Taco 4x4 with 3.4L 6 cylinder engine. The only reason for me to exchange my current truck for a newer model is to improve gas milage and efficiency. Most of what I see being sold in either standard internal combustion or hybrid pick ups, don't offer enough gas savings to offset their purchase price imo. When they start installing batteries like LFP, MP3, or solid state into the full electric vehicles, I expect to see a booming rebound in intrest in fully electric cars and trucks! Even second hand electric vehicles should benefit through aftermarket availability of these batteries . What do you think will happen to the value of all of these overpriced gas guzzlers? Just wondering!
I think what's missing from the discussion on the high depreciation for electric cars is the fact that we are in the first generation of Electric cars. Part of this means anyone buying an electric car currently is an early adopter - this is common in technology products. But due to governments pushing EV and providing incentives, people don't realise they are early adopters.
Looking at it logically, if EV's are the future (debatable), then we all want the prices to drop significantly, because even now they are still very expensive. But the result of that is that the early adopters will suffer financially.
My message to all potential EV buyers (even now, after all the price drops, because more will come), is be aware that you are an early adopter and will eventually pay the eraly adopter tax (high depreciation). I wish more commentators would examine this argument - don't need to agree, but at least discuss.
A lot of people have come to realize that if your EV doesn"t have NACS charging it's a major problem! All the companies that cashed large government checks to provide CCS charging stations have failed miserably. Especially when it comes to ongoing support and maintenance. Interest rates aren't helping either...
lucky for you guys, no such drops in the vancouver canada market, 2022 model Y's going for current MSRP still
Thanks for continuing updates. I'd rather trade the stock market as it's more profitable. I make an average of $30,100 per week even though I barely trade myself.
I'm in a similar situation where should I look to increase income? Do you have any advice? What did you do? Thank you
Well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of society in the country as very few are literate on the subject, thanks to Mrs Olivia Harlow the lady you ones recommended
Sounds familiar, I have heard her names on several occasions.. And both her success stories on wall street journey!
Alright, thanks for the recommendation, but how do I reach her?
Trading without professional guide.... Huh, I laugh you because you'll remain where you are or even make huge losses that will stop you from trading. This has beeb one of the biggest problems to new traders.
To put the Bolt value in context, remaining 2023 Bolt sells for under $20k after federal incentive and even less with some state incentives. Also note that there is a $4k federal incentive for eligible used EVs, so that $17,000 used Bolt is actually $13,000
This is awesome news for someone like me shopping for a used EV. Although I would love to see some data to show if this is the same case in Canada as it seems Teslas are still holding their value very well right now. Maybe that will change.
Good stuff, and mostly good news that EV cars are coming down to normal car price ranges. Had my eye on an F150 lightning, but Ford doesn't currently pass the EV credit to buyer on a lease.
Re Tesla:
Gotta remember, their model 3 and Y have only recently begun saturating the used EV market as customers buy newer versions.
Previously, their used inventory was made up of mainly S and X, which would obviously have a much higher mean sale price.
This video should be presenting itself as VERY POSITIVE news. Vehicle prices are "extremely" over inflated, and a very big correction that still hasn't really occurred, is absolutely needed for the masses.
Bought an ioniq 5 last year for 10k off MSRP. Last month they offered us 15k off MSRP for a lease on a nicer ioniq 5. We now have 2 ioniq 5s, couldn’t be happier with the purchase of either.
The used EV prices for some models are exaggerated because Hertz was selling large numbers of Model 3 and Bolt and smaller numbers of Model Y and Polestar 2. Tesla raised rates quite a bit during the pandemic and supply shortages when there was high demand, then dropped prices quite a bit very quickly, so it’s not surprising that used prices have dropped especially since they have a new version of Model 3 and some number of people will sell the older version for the new.
I shopped the Model Y on and off during the last few years, but got an ID.4 while Tesla prices were high. I see that even though I have been paying aggressively the value of my car has been declining faster and there is a newer version with more range and power.
I bought my first two EV’s when they were three years old after someone else leased them and I leased my current car and then purchased it. It probably would have been better to lease it and return it and lease another car rather than owning, but I hate the mileage restrictions on leasing
Disclaimer: I have not read all the comments before mine, so maybe this has been said several times. The drop in value on the bolt is nearly exactly the same amount as the point of sale federal tax discount at $7,500. When you can buy the brand new one for 7500 less off the lot, that drops the value of the used ones in step.
Risk of EV fire, long charge time, expensive insurance, & crazy low resale value would stop most people from buying one... not to mention they are anything but reliable just check all the new EV reviews with tons of problems!
This is good! And I payed a lot for my model 3 back in 2018. I recommend EVs to family now as they are some great used deals.
A key question is how much of the decline in value of a used BEV can be explained by the rapid decrease in the price of the equivalent new BEV. It's reasonable to expect that price of a new BEV will continue to decline rapidly over the next few years for two reasons: 1. BEV technology is rapidly improving which will reduce the CGS of each new BEV 2. Only Tesla and some Chinese BEV manufacturers are benefiting from the CGS reductions that come with the economies of scale due to high volume production. I'd like to see you address these questions in a follow-on video.
I am glad to see that they are all about the same across the board. I see this as great news not bad news.
Looking forward to seeing Cyber Truck at the top of the list for year over year discounts soon.
Cool! Where do I find one of these reasonably priced used EV?
Not from a dealer because they wont accept an ev on a trade
Go Birds! My friend picked up is Tesla Y last summer, and a week later they dropped the price by $13K.
Think of it like this who wants a used phone no one unless you know how to fix one or know someone who does same applys to cars but also prices are dropping on used cars which is good.
The consumer is becoming more educated about EVs and understand the inconvenience of owning one. Most consumers do not want the inconvenience of having to charge their car when they can just pull into a gas station and fill up their car in 5 minutes as opposed to waiting 30 minutes or more to charge an EV. Tesla has had to stimulate demand for their vehicles by lower prices, that's the way economics works. If your price is to high, lower the price which might create more demand. Their supply is constant because their business model you order the vehicle from the factory.
I think the used car dealers are still pricing them high.
For instance, I am seeing new Model Y long range models from Tesla's inventory as low as $37000(with federal and state credit). Carvana is showing the lowest mileage one for $43000. Any three year old can do the math in this.
Basically, all the cars used car dealers bought back were substantially higher that they just can't sell them with loss.
Maybe in the US, but certainly not in Canada. A lot are going for more than MSRP with mileage already racked up.
Just bought a 2023 new Mach e Prem 91kwh in Southern CA last week 3/1. The only price reduction was for a Lease $7,500 + 1,000 ford cash + auto nation $2,000 discount. Or 0% 72mo financing with no incentives. I took the 48 mo lease with incentives 12,000/mi yr. Final sales price $50,398. I dont want to own a non NACS port car long term, and I would have gone with Model Y but the low ball trade-in value and Tesla's overall arrogant attitude was a turn off. Ford gave me $12,000 more for my BMW 330e 2022 w 10,000mi than Tesla and they refuse to negotiate so no sale here!
Had customers begging me to promise them there wouldn’t be any price cuts when they were purchasing $150k Model S Plaids like there was no tomorrow. I couldn’t legally and told the customers if they worry about resale value run away from Tesla. Any Tesla or EV. One month after the guy bought the car there was a 5 figure price drop.
Just took advantage of this price drop by grabbing a 2022 bolt ev lt1 with 20k miles for $14,484 out the door.
This is awesome
Yeah... but what about the Cummins lawsuit? 🤣
Osborne effect is another reason because ICE car tech is stagnant but EV tech is still moving fast.
MAKE THE GRAPHICS FILL THE SCREEN AND BIGGER FONTS
The Bolt and Tesla have been impacted by regaining the $7500 tax credit. Since this lowers the price on new vehicles, it also depresses the price of the corrosponding used vehicles.
The big issue is, who will buy a used EV with no warranty on the batteries and drive motors? The very expensive repairs. Until that is addressed or actually proven wrong, not hoping for a future solution, count of EV prices being low with higher mileage and years on them.
I’m glad I leased rather than purchased an EV. In one month I’m done and going back to my gas car (thankfully I didn’t sell) for a while.
I assume you were able to charge it at home, just curious why did you lease an EV and not an ICE vehicle?
@@mboiko ah. Good question. I leased a 2022 Nissan leaf because I got it for peanuts at a time when my 14 year old ice car was on its last legs. I sold the ice car since it was costing me $200 a month on average in repairs. I got a 0$ down lease with all incentives thrown in for $189 a month for 2 years. It was the cheapest lease deal I could find at the time. I knew I didn’t want to buy a car at that time because the pandemic pricing was still in full effect. I charge at home using a “quick 220” I was able to rig up in my garage since I didn’t want to invest $2000 to upgrade my wiring. I subsequently inherited a gas car from a relative who passed away so I’m sticking with that once the lease is up next month. I was initially thinking of selling the inherited car too, but I decided not to do so.
@@mongo64071 Sounds like a very good plan, best of luck, and thanks for the info.
Rhe price drops are MSRP but how much of a drop from the post tax credit drop is that?
It is amazing we have price parity for used electric vehicles. On top of better performance, lower maintenance and fuel costs, the replacement rate of internal combustion vehicles should accelerate even more going forward.
It's a good thing right🎉
I would imagine the rebates might bring down used price.
Would like to see a Genesis chart. They have raised prices a lot the last 5 years.
The "Why" is they are way overpriced to begin with.
Remember the electric vehicles had such high demand not so long ago the msrp pricing shot way up and eventually demand dropped big time . Add in gas prices have settled down so ice vehicles are a little more attractive.
If gas prices go back up to 2021/22 levels electric vehicles will be in higher demand again.
Demand of evs follows the rise and fall of gas prices.
Combine these two factors along with what Tesla did with his vehicles pricing which was raise then initially big time and then bring them back down…so went the ev market considering teslas market share of that segment
Not sure where you live but here in CA gas has been over $5 avg over the last couple years. Don't see that impacting much at all. Gas is always high.
@@fozzir east coast tri state. Gas prices for regular are close to $3 a gallon whereas 2 or 3 years ago much higher. JMO that lower gas prices have consumers not clamoring for EV s. When the prices go up every week like a couple years ago evs tend to be a lot more attractive. Not the sole factor but rather one of many. I have a wonderful ev whose lease is coming due this month and the recall notice that the vehicle charging can burn down my house etc has been a real turn off for me and my better half. I’m not convinced I’ll do a ev on my next lease. It was like the straw that broke the camels back. The fact the residuals collapsed an additional 30% just recently hasn’t helped. Just shooting the breeze as one persons opinion.
Last I checked ALL vehicle prices are plummeting.
"Last you checked" ain't saying much. Look at the video at the 2:51 Mark, it illustrates the difference that I'm talking about and the why your statement doesn't make sense point.
Yes there is some pull down in sales price for used vehicles whether petrol or EV but if you look at the degradation and value on resale it will fall for both types but it is falling much, much farther, much greater, much harder for EVs.
Maybe you just want to justify that Evie's are no different but let me submit this One of the biggest reasons for the drop in value I would say is on top of all the other reasons that people typically mention it's a simple beta max versus VHS moment in November major manufacturers started announcing that all the cars they had on the lots had the wrong old port in the wrong old charging system and we're going to require adapters for the rest of their lives who the heck wants to go buy a new adapter car that you have to deal with a plug for the rest of the life of the car when you could just wait until they build NACS into the cars natively. So by waiting and being stubborn then finally giving in to Tesla the entire auto industry that wasn't Tesla shot itself in the foot if not the head by virtual the fact that they obsoleted basically all the cars that were sitting on the lots and everything that was in the production funnel for the next six or seven months or whatever until they started doing new models pretty dopey pretty well explains a huge drop in value even though it started before that You just made everything obsolete and look like a useless piece of junk it's not true but in reality that's the effect to a lot of people they don't understand they hear that you change connectors they freak out they back off buying the cars, duh!
I have been looking for a 4Runner and I can confirm... prices NOT going down
Come on guys, be fair about your analysis. Concerning the Bolt, you know that last year a new Bolt could be had for the high teen to very low twenties after Federal and state incentives are taken into account. You know because TFL bought one for about 18k. So...if we figure the real world new price of a Bolt and not the MSRP and compare the drop to this, the Bolt lost a couple percent of value, which would be really low depreciation. The same likely applies to many of the EV cars on the list: no one bought them new for MSRP. I suspect the real drop compared to the post incentive new prices is somewhat less dramatic. Of course, Tesla's dramatic new car price drops have also affected used car EV pricing.
How can the average EV loss be 31.8% while the worst loss on the Top 10 list is 28.9%? Something doesn't add up.
I didn’t see the Korean brands on this list (maybe I missed it?). But, how are the Kia EV6, Hyundai Ioniq 5 & 6 doing? They have been bucking larger EV trends. They sold very well considering they don’t qualify for the tax rebate.
They were included. The Kia Niro and Hyundai Kona were right behind the Nissan Leaf and Chevy Bolt. Thats because this is a list of lowest to highest EV MSRPs and the % federal tax credit took off that MSRP. If the list continued to 20 vehicles, the EV6 and Ioniqs would've shown up next. Korean brands matched the tax rebate if the vehicle didnt qualify. They're not bucking any large EV trends.
Price cut all you want, I'm not buying because the INSURANCE rates here in Ontario Canada are absolutely insane on EVs.
Insurance companies do not want to insure EVs because of the risk of writing off the entire vehicle in only a minor accident if the battery pack gets even the smallest dent.
Like any other product coming to market. Prices drop as production ramps up.
I just got a 2022 Model 3 with only 13K miles for $27K plus tax. It’s in pristine condition.
No way I’d pay $45K for a new one.
EVs were largely overpriced when new. The recharging infrastructure leaves much to be desired. Home charging stations are expensive for Level 2 charging stations, especially if your electrical system needs upgrading. Insurance costs are higher (they are already skyrocketing across the board). Then there are the horror stories of EVs involved in accidents requiring replacement of battery packs at a cost of up to $60,000 for mainstream EVs such as Kias and Hyundais. What you save in fuel costs may be offset by these higher costs exponentially.
Please employ more perspective here:
JD Power average used car prices:
2019 - $21,500
2021 - $24,000
2023 - $31,000
Used car prices went to the moon when our government pumped $3T into the economy during the plague. Used EV prices went right up with them. High demand made it worse and frankly, used car prices are still high, but inventories are growing, thus maybe we get a break some day.
That's coo...more people can get into EVs with lower prices. Another thought would be that ICE cars are cheaper than EV new, so price drop might be comparably less.
Would have been useful to show the price drop in used EV’s relative to the drop for new EV’s. It may be the drop in new prices driving most of the drop in used.