The State of the Used Vehicle Market
There’s a lot of very interesting things going on in the used vehicle market, and some of it has to do with electric vehicles. Even if you’re not interested in electric vehicles, there’s some factors that are at play. First of all, in general, there’s a big demand for used vehicles overall, and a lot of it has to do with the fact that prices are dropping. As prices drop, you know it’s the old saying: supply and demand, right? If you have more supply and lower prices, you’re going to have more people wanting to buy.
The Rising Demand for Used Vehicles
People are starting to see that used vehicles are a good option compared to new vehicles that have become so expensive. So there’s a demand for vehicles overall, and used cars are really being snapped up.
The Opportunity in Used Electric Vehicles (EVs)
Now, what about electric vehicles? Well, this is a great article from Automotive News, an industry insider publication, saying that used EVs could be the answer for consumers seeking affordability. These cars are dirt cheap. Used EVs are the biggest, best-kept secret out there for consumers. It’s because the depreciation on them was so huge that they’re really cheap, and you can get an incentive or a kickback on used EVs from the government. Used EVs are a huge opportunity. There’s a lot of availability of those vehicles. Lots of people are not going after them.
Affordability and Incentives for Used EVs
It’s a great vehicle. Most shoppers don’t know they want an EV because they don’t know they can afford one. A lot of people think that it’s going to be too expensive, but these vehicles are a lot more affordable. We’ve seen Hertz is dumping their entire EV inventory. They have Chevy Bolts that are one or two years old with low mileage for $12,000, $13,000, or $14,000. There are used Teslas for $25,000.
Federal Tax Credits for Used EVs
There’s also going to be a lot more of them that’ll be eligible for a tax credit. Here’s why: the tax credit from the federal government of $4,000 means the vehicle has to be two years old. Well, in another month or so, it’ll be 2025. That means 2023 vehicles will now be eligible for a tax credit.
Why 2023 EVs Are Significant
Why is that important? Well, it’s just another year, but not just any year. From 2020, 2021, and 2022, there was a shortage of new vehicles being produced. Remember the pandemic? Remember the supply chain issues? You should too, because in 2021 and 2022, there weren’t a lot of vehicles produced. In 2023, there was a sharp spike in production of EVs, which means now there will be a lot more available in the used car market that will now have this incentive.
Advice for Those Considering Used EVs
So even if you’re not that interested in a used electric vehicle, before you discount it totally, look at the pricing. Check out the Hertz inventory that’s being dumped into the marketplace. Look at your local dealer. Look on eBay. Look on AutoTrader. See what they sell for.
Consider EVs as a Secondary Vehicle
Look, if you still hate them and don’t want one, that’s great, but before you dismiss it totally, see how much cheaper it could be compared to a gas vehicle. Maybe for a second or third car, see if it might be worth considering—even if you weren’t initially looking for an electric vehicle.
