The used electric vehicle market could tempt EV-curious drivers
The used electric vehicle market could tempt EV-curious drivers
For the first time, consumers will have a vast pool of used EVs available for purchase. Will hesitant drivers buy them?
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.
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I feel like this is a sponsored article as Hertz recently announced they'd be selling off all their Tesla and Polestar EVs.
There's been a lot of noise about it for sure but it helps blast away the notion of EVs being entirely unaffordable now.
For example, you could walk away paying ~$16k for a 2022 Tesla Model 3 Long Range if you qualify for the EV tax credit: https://www.hertzcarsales.com/certified/Tesla/2022-Tesla-Model+3-cd3e616c0a0e084c73d221de15ea7f83.htm
If you told me that 2 years ago, I wouldn't believe you.
Can you get the tax credit on a used car? I assumed this only applied to new vehicles as it seems odd to give out credits every time the car changes hands.
Yeah, they're really trying to push affordable EV adoption. That's why the credits capped new car prices... Which means most EVs don't qualify
Yup! There’s a few limits, like it has to be at least two model years old and can only be used once on a vehicle.
https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
Then you should read the Ars Technica article on how Hertz is dumping these cars because of high repair costs. In the article they particularly point towards a brand rather than EVs in general, likely because it seems too many leasers want to see just what this particular EV will do. Different experience than how you’d treat your own car.
(Edited for grammar & clarity)
Yeah the fact that these are used rental cars should make them 1/4 msrp, not just half. Maybe even cheaper.
I’d buy one, but I’ve got a lot of experience in electronics and auto repair, and as long as parts are available or it’s cheap enough to break and sell off it’d work out.
Ah, if companies did what they should do instead of what they can get away with…
I’ve 2 friends with Teslas - model S & 3. The S driver bought his lease out because of the free supercharging and for its status. The 3’s already turn his over for an ID.5. Both had problems with leaks, rust in the tailgate area, body panels not aligning and electrical issues and on the S, the battery management controller died and they needed to have it towed from the middle of Poland to home near Amsterdam. The S owner loves it still, the 3 owner couldn’t wait to get rid of his, and these new leases, so you have to weigh your level of patience well (IMHO) before you buy a rental car.
Yeah with Tesla specifically, I’m only interested in salvage to use the battery and drivetrain in a classic car. The aftermarket is supporting motor controls and 3rd part parts to make it easier in the past couple years too.
That seems to be a popular option. Good luck on that!