The used EV market in the US is red hot

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Bloomberg This week, it is reported that the hottest segment of the US auto market is used by EV purchases. There are reports of Chiye Bolt that are traded within a few days to sell to new owners. People can have many explanations about this trend – prices, elimination of federal privileges, solar provision – but this is the reason for simple economics.

The current EV tax concessions apply to a limited number of models – if they were purchased straight. But the Democrats who have snatched the monk in the past in the past have practically encouraged a full $ 7,500 to apply to any electric car – provided it is leased. Did automakers and dealers benefit from this flaw? Boy, Hoody, what they ever did!

Used car action runs by auction

It is a small known fact that most of the used car dealers do not trade in their lots, but are cars that were purchased at auction. Tens of thousands of off -lease vehicles are set up in auction every week. Those cars are purchased by automobile dealers, who then pay them to take them to their stores, where they are checked, thrown, and put on the front line. There are companies that have some good lives in auction and do nothing but carrying cars.

[Full disclosure: For a time, I was responsible for buying cars at auction for a dealership where I was the used car manager. There are few opportunities in life to spend $150,000 of someone else’s money in a few hours. Truth be told, I loved doing it. The emotional energy inside the auctions is a drug I couldn’t get enough of.]

Now, many of them are coming to the EV Lease [the IRA went into effect just over three years ago]. They can be purchased at a lower price than their original sales price in auction, which means dealers can add them to their used car inventory and sell them profitable at less than a new EV price. We know that the most important words in many business transactions are price, price and price.

Used EV price equality

The cost of used EVs is now similar to the used combustion engine car, which means that buyers do not need concessions to equalize the playground. Bloomberg According to a report by Cox Automoto, they are actually selling faster than traditional cars used. In fact, used EV sales are 34 % higher than a year ago.

Liz Najman, the Director of Market, repeatedly in insight, wonders why she knows why this is happening. He told Bloomberg“It was only a matter of time until people started relying enough to rely on the use of EVs used and thus would have an effect.”

It should be a ray for the sun for those who want to make the EV revolution a success. Three years ago – a wide range of FUDs spread freely through fuel interests and car dealers – if they fail, they are worried about being in astronomical costs to change the battery pack. They also believed that you could not run the EV in a hollow, or in the rain, or that they caught the fire when charging.

EV fears

Like all the rumors, there was a wise one behind these fears. The original Nissan leaf had a rapid breakdown of the battery, especially in places like Phoenix, Arizona, where the weather is warm and dry 364 days a year. And there were examples of battery fires in the Tesla and Chiye Bolt that received abundance of press coverage. Although hundreds of gasoline fires are set on fire every day, the battery was set on fire, with headlines.

But now, people have been running the EV for two or three years. They have discovered that most of us already know – the EVs are calm, generous torque, and they do not need oil changes, transmission repair, or new muffins on a regular basis. The word is now approaching that batteries in today’s electric vehicles usually last up to 300,000 miles or more.

In other words, a new, strange, weird, now the mainstream has begun to go into the mainstream. As a reader once posted, “You never fly on the plane – until you did so. You never used the microwave oven – unless you do it. You never played a movie on your TV – until you did so. You never used your app on your smartphone.” The new technology is always nervous to people, whom Mary Shelley made the subject of her book Franklin Stein.

All the people who leased EV two and three years ago are their families, friends and the people with whom they work. They have been disliked for the EV revolution and help others to suffer from fear of electric cars. Last summer, my wife and my wife took a family member on a trip to our Chiye Bolt. “I can’t believe that I am riding in a power car,” he said. “It feels so normal except that it’s more calm than my Honda CR-V.” Okay

EV price equality

According to Cox Automoto, in August, the average used electric car was sold in 34,700, which is similar to the average price of a traditional car or truck used. But Bloomberg An important difference indicates. Usually the EV was only two to three years old, while those traditional vehicles are already six or seven years old. For a three -year -old car, 000 35,000 or six -year -old car, 000 35,000? No surprise that used EV sales are on the rise.

Liz Najamman repeatedly said that he likes a lot about used EVs. It is likely that it has a good limit, charging quickly, and facilities are needed that people want like a touch screen and want to be like a hat pump for effective climate control. “These are modern cars that have all your bells and whistles you want,” he said. In addition, there are thousands and EV chargers available in the United States, which relieve some of the rains of many people.

Some use the electrical models of Chevrolet, Subaro and Toyota, now they are cheap with their petrol -driven siblings, Bloomberg According to reports Carj.com, a two -year -old Toyota RAV4 average is being sold for an average of $ 31,100, while two -year -old Electric Toyota BZ is being sold for $ 6,600.

Cox Automoto says used EVs spend an average of 36 days in dealer inventory before sales – 6 days less than used traditional cars. Time has money in the car business. As a used car manager, I was under constant pressure to move cars to inventory in less than 45 days. The justification was that whatever money can be generated by selling a car at a loss can be used to buy another car that is sold on a benefit. I have never fully subscribed this logic, which is one of the reasons that I have not been a car manager used as long as I like.

Make EV normal

Liz Najman said that the relatively low prices of used EVs have been “brought back to EV for those who probably didn’t even realize that they were an option, or thought they were just toys for rich people.” We have sprayed a lot of ink here Clean Technica To describe why electric cars are better. But the price is still the main factor in the decisions of the people.

Although we are all focused on the elimination of federal privileges for EV, we assume that the sale of new battery electric cars will decrease rapidly, the used car market will continue to spread good news about driving on electrons. So happy! The EV revolution is still taking place and will continue to grow. Buyers will put pressure on car makers to give them whatever they want, despite the efforts of the opponents trying to stop the EV wave from rolling.