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.
Can’t have a supply of used cars without someone buying them new first.
I’m thankful for those who “take one for the team” so that I can buy at a palatable price. But when I think of how much my income would have to increase that I’d be comfortable paying new car prices, I don’t believe there are that many people who are that rich to account for the number of new cars that get sold.
The reality is many new car buyers stretch their budgets a lot more than you and I would be comfortable doing. Lots of cultural conditioning, cars as a status symbol, etc mean lots of poor financial decisions.