[RahulNagaraj]

Brand-new EVs are still more expensive compared to their ICE-powered counterparts. However, in the used car market, things seem to be the other way around.

According to media reports, for the first time prices of used EVs are quickly falling below that of used ICE models. As per reports, a recent study which analysed prices of more than 2.2 million used cars in February, stated that EVs are losing their value much quicker than their counterpart ICE models.



The report states that EV prices fell by almost 30% year-over-year, which is nearly five times the rate of decline compared to ICE cars. Karl Brauer, an executive analyst, stated, "There’s no denying the crash in used electric vehicle values over the past year. We’ve watched EVs’ prices fall between 30 and 40 per cent since June of last year, while the average gas car’s price has dropped by just 3 to 7 per cent in that same timeframe."

The study also mentions that buyer scepticism over battery longevity and national charging networks are some of the key challenges faced by dealers while moving their used EVs. The report also says that electric powertrains themselves are considered a detractor, making them less desirable than the traditional ICE-powered models. Brauer stated, "It’s clear used car shoppers will no longer pay a premium for electric vehicles and, in fact, consider electric powertrains a detractor, making them less desirable – and less valuable – than traditional models."

Source: Autoblog

Link To Team-BHP news

[SchnelleKurven]

This depreciation rate of EV’s rivals that of mobile phones. However, there is a place for EV’s and they are fun to drive as well! Premium EV prices are tanking too , a recent video by Carwow below.

https://youtu.be/eGS34ENu4S4?feature=shared

The ICE car ecosystem has evolved over 100 plus years, so it might not go away quickly.

Personally, I think first generation EV buyers are going to be hit with pioneering costs over their EV ownership. The latest news of car OEM’s redirecting investments into ICE from EV or differing EV roadmap is perhaps recognition of this.

[Rahul Bhalgat]

Originally Posted by RahulNagaraj

The report states that EV prices fell by almost 30% year-over-year, which is nearly five times the rate of decline compared to ICE cars. Karl Brauer, an executive analyst, stated, "There’s no denying the crash in used electric vehicle values over the past year. We’ve watched EVs’ prices fall between 30 and 40 per cent since June of last year, while the average gas car’s price has dropped by just 3 to 7 per cent in that same timeframe."

The report says EV prices fall by 30% after a year. But I wonder why would one sell the EV after just 1 year? If someone wants to buy 1 year old used EV, will he get any car at all?

[Black_Star]

Originally Posted by Rahul Bhalgat

The report says EV prices fall by 30% after a year. But I wonder why would one sell the EV after just 1 year? If someone wants to buy 1 year old used EV, will he get any car at all?

There are two ends to this spectrum. One who uses their car extensively, and they can quickly rack up kms pretty quickly. There is a 2014 Tesla that has gone 2 million km and is currently on its 14th motor, and third battery pack. Thats about 2 lakh km per year. Similarly rental company like Hertz have fleet of high mile EVs, that need major repairs and replacement of parts. They have used their cars to the fullest and instead of paying for repairs they would rather sell it off and get a new one instead.

And the other end of the spectrum is the company and people who support it. There has been a major discontent towards Tesla or rather Elon Musk, people who supported him have grown to hate him in recent times. So you can assume they would rather sell off their Tesla and buy another car, than to support Tesla.

[Earthroamer]

Since there would be lots of uncertainty with the life of a used battery, which is a major component of the EV, the prices are going to get quoted less.

Originally Posted by Rahul Bhalgat

The report says EV prices fall by 30% after a year. But I wonder why would one sell the EV after just 1 year?

There's a certain trend among some of the EV owners, who are planning to shift back to ICE, probably because EVs use cases are limited with more cost of ownership.

Here's a McKinsey study saying that, about 46% of US's EV owners planning to shift back to ICE. Globally, it's at 30%

https://www.teslarati.com/mckinsey-s...itch-back-ice/

I'm positive that, majority of EVs, which are less than a year old, and less than 10k miles on them, have had the owners, who fall into the category of McKinsey study findings. The carwow video posted above, has a taycan turbo s, with just 20 miles and a depreciation of 25% in a year.

[RunSam]

I came across this video just the other day and was baffled! On the bright side, it's the perfect time to pick up a depreciated Model S Plaid if you're in the US or Canada.

https://www.youtube.com/watch?v=y6fe..._channel=Donut

[Rocketscience]

I think this will continue and continue worldwide, EVs won't rise as rapidly and easily as many have anticipated and ICEs and hybrids will be the dominant ones for years to come, even I would be hesitant to buy a 6-7 years old Nexon EV as opposed to say a Honda City, since the City would easily serve me and additional 7-8 years without much expense but if the EVs battery dies, it would result in an expense which would run in lakhs and perhaps more than most can afford or will be willing to spend, it could be more than the value of that car.

And this factor will be paramount in decline of EVs in the short term.

One way around this by EV manufacturers can be 15-20 years battery warranty, that is realistic life for any cars and they can take care of it all with one masterstroke of an move.
Now, weather it is feasible for them to do this is another thing.

[RMN]

This is probably going to be the toughest period for EV's, the coming of age! Majority of the consumers will prefer getting a used EV due to the poor resale value and this could kill of many EV startups and plans.

On the other hand, this could also increase EV acceptance which means whichever manufacturer is left standing with a decent portfolio can possibly get the pay off in a few years' time.

[amol4184]

Originally Posted by Rahul Bhalgat

But I wonder why would one sell the EV after just 1 year? If someone wants to buy 1 year old used EV, will he get any car at all?

Others have given valid reasons but here's one more - plenty of people just like to switch cars here at the slightest opportunity, vast depreciation not withstanding. My ex-boss bought a new car almost every year. He just liked recycling his cars and bought different model years of same cars even. And he wasn't alone.

As for finding a year old EV isn't too difficult either. Not just EV, other cars too. I bought a late 2020 car in 2022 for a sweet discount. Pristine condition too , previous owner was simply looking to upgrade immediately for whatever reason. I think the market in the USA is quite different from ours.

[nimblemaster]

Till the time the world shifts to EVs completely, people will keep viewing EVs with skepticism. Noone wants to buy a used EV. The early adopters mostly prefer new EVs. There are also limited ways to fix an EV in case something goes wrong with a used EV. Till some time passes and the industry moves towards EVs from ICE, the value decline will slow and people will start picking up old EVs with confidence.
At the moment, EVs are for people that use their cars for a longer period.

[doctorjee]

People who have decided to go electric typically are willing to stretch their budget a lot more than ICE buyers. Therefore, they are not really interested in buying 2nd hand cars. EVs are more than just ICE cars but with a battery and motor. For the owners, they are also tech gadgets, just like a PS5 or a Meta Quest 3. So the character and psyche of these buyers are closer to tech buyers than car buyers. In tech, ppl will buy secondhand only when they get it at a huge/bargain discount.
Personally, I am looking to buy my second EV and I don't mind buying a used one...I won't buy some 1-year-old Nexon EV or even Comet EV even at 30% discount... may be yes, at 50% discount...
Also, I won't buy some 1 year old Nexon ICE even at 50% discount (for personal use, yeah I may buy and sell it off) �� �� ��

[racer_7]

Its a similar case as that of a smartwatch vs automatic watch. The automatic will hold better value as it will always work with a little timely maintenance. Also, we have reached the pinnacle of how good an automatic watch can be. The way software and battery technology is evolving with every passing day, the electric car and smartwatch are way off from their peak.

[hema4saran]

One of my colleague recently got a loaner EQS when he gave his E class for service. His contact in dealership told him that 2 year old used EQS 450 is available for $50k to $60k in their dealership. This is easily 40% to 50% depreciation and these cars are lease returns and are in impeccable shape. Mercedes build quality is miles away from Tesla. If I am in market today for EV, EQS will be the top contender.

[mazda4life]

I am in the US market for purchasing a EV/Hybrid in the near future , but would be wary of the used EV market for some major reasons below (purely my point of view)
- Software updates and upgrades visibility or lack of thereof
- Battery health by an independent agency ( I dont believe the OEMs )
- Warranty for the components (too confusing)
- Continuation of any subsidies/ credits ( varies state by state)
- Wear and tear as I have seen cars being floored from signal lights all the time