Used EV Prices plummet 32% as Tesla’s repeated price cuts impact industry

AMG Power · 14th March 2024, 20:34

According to a new iSeeCars study, EV prices have fallen a staggering 31.8% in the past year.

The company analyzed over 1.8 million used cars sold in February 2023 and 2024, which were between one and five years old. The results showed a “general softening of used car prices overall, but a dramatic drop in used electric vehicle prices.”

The biggest loser was the Chevrolet Bolt as prices are down 30.4%. Nissan’s Leaf wasn’t far behind as it fell 29.1%. Rounding out the podium was the Kia Niro EV, which fell 27.1%.

Tesla was the hardest hit brand as their average used vehicle goes for $36,515. That’s down 28.9% from last year.

The dramatic decrease was driven by Tesla’s aggressive price cuts, which have not only hurt the value of their used vehicles but also others as well.

Source

GTO · 15th March 2024, 10:17

Tesla has cut prices, yes, but over & above, even battery prices have been falling. We have seen similar price cuts in India with the ZS EV, XUV400 / Nexon EV discounts and big price cuts on electric 2-wheelers.

Combine that with the fact that customer demand today for EVs is a little lesser than the car manufacturers originally anticipated. Plus, like smartphones & electronics, every year's electric model is superior to the last year's. More than in petrol or diesel cars, the latest is indeed the greatest in the EV world.

I expect to see similar behaviour in the used EV market of India too.

HighOnSpeed · 15th March 2024, 15:00

Globally, car manufacturers over-anticipated the demand for EVs. Now they are forced to make price cuts to clear their existing and planned inventory. But I don't think the price cuts had anything to do with the falling prices of EVs in the used car market. They typically never fetched good prices in the preowned market owing to people's general lack of interest. And the fact that the battery replacements cost a fortune is a big deterrent in itself.

Shreyans_Jain · 15th March 2024, 15:14

Battery replacement cost is a bogey that manufacturers will have to address if they want to actually deal with the problem of resale values. EV resale prices have generally been absurd, either ridiculously high or totally abysmal. There has generally not been any middle ground. For stable and predictable prices to emerge through market forces will take time, 5-7 years. That too if there is no major breakthrough in range or technology, and stability continues. Ideally, they need to come up with a buy back system for old batteries that have dropped below 70% capacity.

The fact that manufacturers themselves are guilty of excessively marking up replacement costs, just like every other spare part, is also a big part of the problem.

14th March 2024, 20:34	#1
AMG Power Senior - BHPian Join Date: Mar 2017 Location: BLR Posts: 1,278 Thanked: 8,851 Times	Used EV Prices plummet 32% as Tesla’s repeated price cuts impact industry According to a new iSeeCars study, EV prices have fallen a staggering 31.8% in the past year. The company analyzed over 1.8 million used cars sold in February 2023 and 2024, which were between one and five years old. The results showed a “general softening of used car prices overall, but a dramatic drop in used electric vehicle prices.” The biggest loser was the Chevrolet Bolt as prices are down 30.4%. Nissan’s Leaf wasn’t far behind as it fell 29.1%. Rounding out the podium was the Kia Niro EV, which fell 27.1%. Tesla was the hardest hit brand as their average used vehicle goes for $36,515. That’s down 28.9% from last year. The dramatic decrease was driven by Tesla’s aggressive price cuts, which have not only hurt the value of their used vehicles but also others as well. Source
	(2) Thanks

15th March 2024, 10:17	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 71,847 Thanked: 321,603 Times View My Garage	Re: Used EV Prices plummet 32% as Tesla’s repeated price cuts impact industry Tesla has cut prices, yes, but over & above, even battery prices have been falling. We have seen similar price cuts in India with the ZS EV, XUV400 / Nexon EV discounts and big price cuts on electric 2-wheelers. Combine that with the fact that customer demand today for EVs is a little lesser than the car manufacturers originally anticipated. Plus, like smartphones & electronics, every year's electric model is superior to the last year's. More than in petrol or diesel cars, the latest is indeed the greatest in the EV world. I expect to see similar behaviour in the used EV market of India too.
	(3) Thanks

15th March 2024, 15:00	#3
HighOnSpeed BHPian Join Date: Aug 2023 Location: Bengaluru Posts: 92 Thanked: 139 Times	Re: Used EV Prices plummet 32% as Tesla’s repeated price cuts impact industry Globally, car manufacturers over-anticipated the demand for EVs. Now they are forced to make price cuts to clear their existing and planned inventory. But I don't think the price cuts had anything to do with the falling prices of EVs in the used car market. They typically never fetched good prices in the preowned market owing to people's general lack of interest. And the fact that the battery replacements cost a fortune is a big deterrent in itself. Last edited by HighOnSpeed : 15th March 2024 at 15:01.
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15th March 2024, 15:14	#4
Shreyans_Jain Distinguished - BHPian Join Date: Nov 2013 Location: HR51/HR29/HR26 Posts: 2,981 Thanked: 23,833 Times	Re: Used EV Prices plummet 32% as Tesla’s repeated price cuts impact industry Battery replacement cost is a bogey that manufacturers will have to address if they want to actually deal with the problem of resale values. EV resale prices have generally been absurd, either ridiculously high or totally abysmal. There has generally not been any middle ground. For stable and predictable prices to emerge through market forces will take time, 5-7 years. That too if there is no major breakthrough in range or technology, and stability continues. Ideally, they need to come up with a buy back system for old batteries that have dropped below 70% capacity. The fact that manufacturers themselves are guilty of excessively marking up replacement costs, just like every other spare part, is also a big part of the problem.
	() Thanks