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 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
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.
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.
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.