For the first time, consumers will have a vast pool of used EVs available for purchase. Will hesitant drivers buy them?
Twenty-thousand Teslas are about to flood the US used-car market, as rental-car giant Hertz seeks to shed a third of its electric vehicle fleet.
For drivers, it’s a chance to snag a Tesla for well below market rate. The Hertz Car Sales website shows more than 200 used Teslas selling for less than $25,000 (£19,800), as of this writing. In comparison, a new Tesla Model 3 – the company’s least-expensive offering – starts at $35,990 (£28,500). These prices are even lower than the US’s cheapest new EV, a Nissan Leaf, which sells for around $29,000 (£22,965).
As Hertz sheds its stock, experts also expect more used electric vehicles will hit the market from dealerships, other rental fleets and private owners, particularly as three-year leases expire. For consumers who have been EV-curious, the new global secondary market presents a prime opportunity to purchase one at a steep discount – especially at a time when automakers continue to struggle with bringing down prices on new models.
“From next year onwards, there will be very significant volumes [of used EVs], and we can expect prices to go down significantly,” says Thibaud Simphal, Global Head of Sustainability for Uber.
I feel like this is a sponsored article as Hertz recently announced they’d be selling off all their Tesla and Polestar EVs.
There’s been a lot of noise about it for sure but it helps blast away the notion of EVs being entirely unaffordable now.
For example, you could walk away paying ~$16k for a 2022 Tesla Model 3 Long Range if you qualify for the EV tax credit: https://www.hertzcarsales.com/certified/Tesla/2022-Tesla-Model+3-cd3e616c0a0e084c73d221de15ea7f83.htm
If you told me that 2 years ago, I wouldn’t believe you.
Can you get the tax credit on a used car? I assumed this only applied to new vehicles as it seems odd to give out credits every time the car changes hands.
Yeah, they’re really trying to push affordable EV adoption. That’s why the credits capped new car prices… Which means most EVs don’t qualify
Yup! There’s a few limits, like it has to be at least two model years old and can only be used once on a vehicle.
https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
Then you should read the Ars Technica article on how Hertz is dumping these cars because of high repair costs. In the article they particularly point towards a brand rather than EVs in general, likely because it seems too many leasers want to see just what this particular EV will do. Different experience than how you’d treat your own car.
(Edited for grammar & clarity)
Yeah the fact that these are used rental cars should make them 1/4 msrp, not just half. Maybe even cheaper.
I’d buy one, but I’ve got a lot of experience in electronics and auto repair, and as long as parts are available or it’s cheap enough to break and sell off it’d work out.
Ah, if companies did what they should do instead of what they can get away with…
I’ve 2 friends with Teslas - model S & 3. The S driver bought his lease out because of the free supercharging and for its status. The 3’s already turn his over for an ID.5. Both had problems with leaks, rust in the tailgate area, body panels not aligning and electrical issues and on the S, the battery management controller died and they needed to have it towed from the middle of Poland to home near Amsterdam. The S owner loves it still, the 3 owner couldn’t wait to get rid of his, and these new leases, so you have to weigh your level of patience well (IMHO) before you buy a rental car.
Yeah with Tesla specifically, I’m only interested in salvage to use the battery and drivetrain in a classic car. The aftermarket is supporting motor controls and 3rd part parts to make it easier in the past couple years too.
That seems to be a popular option. Good luck on that!
I still can’t really comprehend who are the people who buy brand new cars. Why would anyone pay so much extra?
People talk about how quickly a car’s value drops in the first couple years but that only matters if you sell in the first few years. Most modern cars are trouble-free for 10+ years, so why risk buying someone else’s lemon when I can buy new and not worry about it for the next decade, and the price isn’t so bad over that timeframe
Can’t have a supply of used cars without someone buying them new first.
I’m thankful for those who “take one for the team” so that I can buy at a palatable price. But when I think of how much my income would have to increase that I’d be comfortable paying new car prices, I don’t believe there are that many people who are that rich to account for the number of new cars that get sold.
The reality is many new car buyers stretch their budgets a lot more than you and I would be comfortable doing. Lots of cultural conditioning, cars as a status symbol, etc mean lots of poor financial decisions.
I recently bought new, but that was about a year ago when the used market was upside down, so we bought new for only a couple grand more than a one/two year old used was at the time. Although that’s probably not the typical experience.
You are certain that the car will work if you take care of it. Used can be abused. If you have money to spare - why not.
I see that exactly opposite. Brand new can have manufacturing defects, warranty issues. A used car is proven. As long as you get it professionally checked over for mechanical issues, a late model car is very likely to be trouble free.
Whose QC do you trust more, random owner who gets a new car every three years or manufacturer who has made thousands of the same thing?
Both are likely to be trouble free, but a vehicle that’s been driven hard likely won’t show those signs until years down the road.
You know for a used market to exist, someone has to buy it new at some point?
As for me, I plan to hold onto my car for 8-10 years. I had a windfall on top of a windfall and figured “fuck it, #yolo”.
Nothing wrong with used cars but I’d have a little hesitation buying a used vehicle of any vehicle manufacturer’s first go-around with EVs…
Ehhhh im currently driving a Gen 1 Prius (2003) that I bought at auction for $500.
I have less than $2000 in it all-in (everything except fuel and insurance, even oil changes).
I’ve put about 55k miles on it and it pulls a steady 43-44 mpg
Hysteria over battery issues has turned out to be exactly that — these 22 year old batteries are fine. Being used (within the design tolerance) keeps them fresh.
$500 is an great price, it sounds like you’ve struck gold with it!
Purely from a cost optimization POV, buying used makes a lot of sense, but not all purchases are made with cost optimization as the priority.
Can confirm, just bought a top of the line 2022 Leaf with 33k miles on it. All the bells and whistles of a new $40k car, even warranty, and thanks to the used EV credit, got it under $15k.
It just makes so much more sense. Even if it’s not the ideal car due to the aging CHADEMO standard and lack of battery cooling, the low cost of ownership and many nice features make it a great stepping stone until the market sorts itself out.
No battery cooling? Shit that doesn’t sound like a good idea in warm climates
AFAIK it’s air cooled, but lacking your usual liquid cooling loop. The temps will drop as you drive, but not enough to overcome the heat added by fast charging and bring the pack down to allow another rapid charge session at full speed.
It’s fine generally - what I’ve heard is the only issue caused by the air cooling is heavily throttling fast charge rate eventually on a long enough trip, but it does basically grind road trips to a near halt.
Damn. I live in Arizona, during the summer my phone shuts down sometimes just during normal use because of overheating, I imagine that not working well… Maybe the air cooing is sufficient
I’ve been watching prices for a couple of years now. It’s certainly better than ever right now. I’m hoping to keep my current ice car running for a couple more years, while I deal with some unrelated expenses.
After that, I’m definitely going for a used bev.
I’m seriously considering a 2022 Chevy Bolt in my area (25k miles, $16k after tax credit). I typically buy cheap used cars, but the used market in my area is awful…
I bought a used leaf a couple years ago as a test to see how an EV would fit into our lives.
It’s an awful car, but even still, we’re never going back to gas. It showed us that an EV is the best option for our lifestyle.
Really?? We just bought a used 2019 leaf and absolutely love it. What do you not like about it?
I have a 2015 leaf, the battery is garbage.
The 2019 has a much better battery.
Ah fair enough, I’ve heard that about the first gens. Sorry to hear that!
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