The main reason that used EV prices are falling so fast is because they were marked up so high in 2022. A new Tesla in 2022 was $70K and a used one at the time was $90K due to supply chain issues.

I love how they keep interviewing dealerships. They have the biggest conflict of interest when it comes to EV adoption. You might as well be interviewing Exxon. As others have mentioned... EV prices while already high were inflated even more over 2022. So their prices had nowhere to go but down.

Charge at home doesn’t work for most apartment or condominium residents. That will limit the number of EVs in big cities.

It could also be that everyone who would've wanted an EV already bought one. For people who didn't want an EV, it'll take a bit more to convert them (better milage, more fast chargers available).

A severe price drop would normalize EV prices to reasonable levels for a consumer. Dealers blaming demand are just making greedy excuses.

Well Tesla did several price cuts the past year; it only makes sense, like the new car’s value, that the used car value would also go down.

Several car renting companies are removing the EV cars from their rental vehicle fleet. The two main reasons are low resale value and very cost for accident repairs! Routine maintenance costs are low. But batteries repairs are expensive and body shop repairs are also expensive ! Talk to body repair shops and ask them about the availability of Tesla spare parts !!!

This is supposed to be the norm. It looks like a huge crash because of the near extortionate level markups that plagued used markets. Those same dealers are now wondering why their 300% markup isn’t selling when manufacturers like Tesla, Lucid and Rivian are aggressively pushing their own stock both via finance and lease. This is also not to mention lease incentive is huge. Leases are amazing deals for EVs right now. My Model 3 alongside a family member’s eTron costs less than what my previous BMW M340i costed in lease and yet if you cash out, the etron alone will easily outprice the 340i not even mentioning the Model 3. Combine that with lease positives like tax deduction, worry free maintenance, there really isn’t a reason to lease these mid-tier EVs.

The main people saying EV demand is low are dealerships selling overpriced EVs with insane dealer markups. The handful of reasonably priced high quality EVs on the market, are selling faster than they can be made. Dealers are so scummy they'll blame anything other than their own greed for faltering sales.

Yeah, in October 2023 a used Tesla cost more than a new Tesla because it took months to get one. Now there is supply available and there have been big price cuts for new EVs, so of course resell price is going down much quicker than other vehicles

Battery life and range limitations are issues that remain unresolved.

Why would you buy a Used battery? ????? Nobody wants a used battery!!

Electrify America has been the main culprit for slowing down non Tesla EVs. You can't expect people to adopt a technology while the charging network is unreliable. The other brands are struggling for that very reason except Tesla because they own their network. Hopefully with the Nacs adoption, people would be more inclined to tolerate other brands.

In 2022 EVs were selling well over MSRP. Even Tesla was selling the Model Y for $15k more than its original price. In late 2022, a used Model Y sold for more than a new one today. Model 3 owners were trading in their cars for essentially what they purchased them for in 2021. So any drop in used EV prices in 2023 just reflects the increased supply and the return of MSRP pricing.

It's weird that no one mentioned the soon-to-be-deprecated charging ports as one reason for the low demand outside of Tesla. The Nissan Leaf still uses CHAdeMO and the rest of the players have at least another year of using the CCS connected before they switch to the Tesla (NACS) port. It makes all the sense in the world to wait for the NACS charge port before buying from another manufacturer.

It’s affordability and lots of misinformation that are hurting sales. I got an Ev to try. 8 people on my team of 9 at work flipped out. When I pressed for why they dislike them so much, they didn’t have an answer. No experience with them, nothing. Some were open to taking a ride and really liked it, some where indifferent, and others want even get in it. Like it’s some possessed creature. We have different spaghetti sauce, different toppings for pizza, why can’t we have different power sources for our car?

New homes built should have NEMA 14-50 outlets that are 240v in the garage so you can do level 2 charging at home

Most people who can afford an EV and want one already have one, so now more of the market are less wealthy drivers who can't justify the costs because the fuel/maintenance savings don't offset the high cost of purchasing one, even with rebates and lower resale values. Hybrid vehicles look much more promising in terms of affordability and reliability for the next 5-10 years until EV prices fall, not to mention you don't have to deal with range anxiety or charging.

I Feel sorry for electric car drivers and future owners. They will simply have to learn the hard way .. as I did. These things are a huge hassle, all those lost hours sitting in those charging stations, huge anxiety, plus a outrageous expense in the long run. Good luck trying to sell a used Electric car with wore out battery modules. You'll find out nobody wants to pay the ridiculous price of batteries ... Batteries are very ... very expensive to replace ( thousands and thousands of dollars) ... and make no mistake, you will be replacing them. These batteries are highly toxic to our environment and a constant concern for fire, also a high potential for disaster to our surroundings. These new specialized automotive grade batteries ... are not green clean energy by any means... Don't fool yourself and certain don't listen to a manufacturer or salesperson, ... they will say anything, do anything to make a sale . I wish I knew all this before I bought my car . For some of you younger people, you probably already made the mistake, but that's how you learn in life !

Also, the used market will have more 4-5 year old Tesla's due to customers getting out of them with warranty still in place and therefore having a higher residual value over a 6-7 year old EV. Consumers are anxious about getting an older EV due to battery replacement cost with that golden warranty getting close to running out. Warranty is a huge part of the risk with new technologies.

I only drive a few thousand miles a year. It makes no sense for me to own an EV

The new Edsel!

Have you noticed all the Used Electric Cars sitting on car lots.? I drive alot up and down the CA. State, I've noticed a lot of EV showing up in these used car lots. I've even seen newer used 2023 models. That says it all, .. evidently not too many people like their EV . Looks like more are going back to Gas.

EVs are dangers because they catch fire

I've wanted to purchase a hybrid or EV since 2008, but prices, range, and unknowns about battery life have led me to continue to buy just high mpg ICE's.

With more and more high tech in cars wonder if cars will seem “outdated” faster than before (like used cell phones)

Some of us like to buy cars that are over 10 years old to take full advantage of depreciation. I’d love to have an EV, the Cybertruck looks amazing, but I’m not paying full price for one and last time I check there were no large truck or suv electric vehicles being made in 2013… so, I’ll wait. The Ford Lightning seems to be dropping like a rock on the used market so that’s a good sign :)

Got my Tesla M3 in Jan 2022, was getting 6-7k over my msrp in April '22. And i bought at a fairly high price. 2022 was a year where used cars were more expensive, used EVs were more expensive than new cars. So in comparison '23 30% reduction makes sense. EV price mainly headed by Tesla are coming down in price for S3XY, if new cars are going to get cheaper, used car prices will go down as well. But if you buy a Tesla '24 model in Jan, and sell it in Feb, that's almost out of door depreciation, i feel some EVs might be the lowest depreciation. Overall i think prices coming down is a good thing, even though personally I won't be able to benefit if i sell my car, i want EVs to become commodity, and not something that people have to shell out extra for. We want the market to be buyers market.

I’m buying a Hybrid next car. I’ve always had ICE. Question is whether to get regular hybrid or plug-in. Depends on the deal

The main issue is the battery degradation

Prices are falling because no one wants those expensive pieces of sh*t.

You wouldn't buy a used battery, .. would you?

Very good news, more people can afford used EVs if prices are falling.

Do you know why there's low resale value for an EV? Because replacing those batteries costs a fortune. Replacing engine parts in an ICE is far cheaper even if its a full engine than a new battery in an EV.

I bought a used Nissan leaf in 2018. At the time it was scary because the price was very low. I thought that there might be something wrong with it. But there was nothing wrong with it. It's an amazing car. The only difference is that my car had a low range. Newer electric cars have a much better range. If you have an outlet close enough to reach your car it's a perfect car for short range driving. Not good for long road trips.

Because replacing a battery costs an arm and a leg. Few mechanics want to work on them because they fear for their lives. Manufacturers have poor support! The only EVs I would buy today are MHEVs. Unless I had the solar and a commute to justify short-term leasing.

"Maintenance costs are lower" ... until you have to shell out $15,000-$25,000 to have the batteries replaced.

For a lot of people, their car is their most expensive asset. So they will think 5 times before going for EV. It is just not convenient for most people. 1. You need to have a home for the most part - most people don’t have patience to charge at a charging station 2. No one knows about whether battery packs will be available for some cars when they buy a used one. What if X manufacturer goes bankrupt or stops making such batteries ? 3. People will buy when it’s beneficial for them. Right now, it is not beneficial for most people. Although CNBC and many news sources try to always show California gas prices when they want to show prices increasing and show states with gas prices like Texas when gas prices dropped (in 2020). But as a whole, gas prices are reasonable for most people to not actually buy an EV. (Yes people sometimes might browse EV prices when gas prices skyrocket but not actually going to buy them). 4. It is more stressful for road trips. So if you only have one car you will likely avoid EV. Also, many people with more than one car have old ICE vehicles (low mileage) which they won’t use for a long road trip. So even with households with 2 cars or more, they may use only one for roadtrips. 5. A lot of EV charging stations have out of order charging stalls. There are other glitches which make it less seamless than gas stations. 6. I think things are moving in right direction which is gradual EV adoption which is the right thing. This allows people to have proper trade offs. Meanwhile, charging infrastructure will improve and charging time will reduce over the next decade.

The prices are falling because people don’t like wasting money on pieces of sh%t

Buying a used EV is basically like buying a used battery.

Because replacing the battery costs more than the car is worth

My 2018 Tesla Model 3 still gets 255-260 miles of range on the display when charged to 90%. Also, runs like it is brand new, and hasn't needed any maintenance except 12v battery replace and tire replacement. Not even a cabin filter change which I will is expected to take place in 6 year rotation. Edit: Cabin filter should be changed every 2 years. I am not sure where I got 6 years, but somewhere along the way I picked up this misinformation and have been operating without cabin filter changes like I should.

Are you sure about those maintenance costs or did you just get that info from Tesla’s marketing arm? I ask because apparently someone reviewed a Tesla after having a dingle. They couldn’t just get the bumper beaten out or just replace the bumper, they had to pay a ridiculous amount and have a portion of the chassis replaced. Apparently you can’t just get the brake pads changed, you have to get a whole new tyre kit and you can’t just go to your generic tyre dealer either. From what I’ve heard, the cost price of a Tesla is one thing then the running costs are astronomical although the fuel costs less than combustion engines.

Gas prices go up and down , Electric prices just go Up and Up and will continually go Up at a fast rate

The issue with used EVs is, that they are very often outdated. The technique is involving so fast, that buying a car that was built some three years ago, is - compared to the latest generation - outperformed in terms of charging time, assistant systems, and functionality. Also, these older cares were more expensive, so to compete with a new car, they can only be sold with a massive discount.

An EV is all fun and games...until the battery needs replacement

I bought a Kia Niro EV 3.5 years ago. I am saving roughly $3000 a year in fuel costs vs the ICE car it replaced. I haven't had any oil changes, and I won't need to do engine air filters or spark plugs EVER. Brake pads now last 100-130k miles between changes. No radiator to boil over. I'm also much a much calmer driver because there's no noise or vibration while driving, and no fumes leaking into the cabin to worry about. If I had to charge my car on the street, it would be a problem, but I don't - I have a home and a garage. Additionally my office building has a few free-to-use charging hookups as well for the tenants. I realize that there are several cases where an EV doesn't work (driving 300 mi every day, live in an apartment and park far from the actual residence, etc) but if you're in a house with electricity and need a new car in 2023/2024 I think you would be foolish to not consider an EV.

battery replacement costs a whole car, LOL

0:45 , ma man explained it in one line.

I love the quality of the content on this channel.

Battery degradation is so fast, battery replacement is too expensive, as if charging speed is not inconvenient enough.

My friend has a Porsche cayenne hybrid that is only a few years old and has about 8000 miles on it. He can only get about 8 miles on a charge now so it needs a new battery. The new battery is over $25k. Maybe this is another reason for falling used car prices.

And the cost to replace the battery???

They had a fire sale because so many caught fire

Prices are still too damn high. My local Kia dealer has an EV9 for just over $75k USD and PHEV Sportage for $48k USD with zero options. You will NEVER get the PHEV premium back in saved fuel or residential value. The EV9 will be worth close to nothing in ten years, so you will never save that $75k in fuel or maintenance costs. Especially when you factor in higher insurance rates and more frequent tire changes. With my ICE the tires have been by far the highest expense. Replacing them 20-50% more often due to the extra weight negates a lot of running costs savings.

Buyer beware 🔥🔥🔥🔥🔥

I think its still that fear of having to replace a battery after 10 or so years. I keep my vehicles forever and my 1990 chevy still has the original engine and transmission in it. I have a old lithium battery drill that is about 12 years old and the battery still seems to work fine, a lot of people buy new cars and trade them in every 5 years so for those people there is no worry

Being an Audi etron owner who’s currently selling my vehicle, I can safely say once the warranty has ended sell up because repair costs are through the roof.

Something not mentioned is that prior to 2022, used EV's typically costed more than new due to waiting lists and demand. Until recently Model 3's and Model Y's in the used marked costed $5k to $15k more than new off Tesla's website.

I think investing more in hybrids until the charging networks gets better is the way to go. No charger, use gas, if a charger is available use the battery and save the gas. Hybrids just make more sense for the next 10-15 years.

I got an 8 year model s p85d. I used to get 255miles per charge. Now, I get 140 miles doing 70 mph on autopilot.

Well, all the stories coming out about people being charged $20K to $50K to replace an out-of-warranty EV battery sure isn't going to help things.

I've noticed being on my second EV that the battery wears fast at first and then levels out. If your used EV works for you now it will also work for you in 5, 7, maybe 10 years. I mean the original HV battery on my 2007 hybrid is still good.

The bigger problem is assaults at charging stations. Only 3-7% of these assaults get reported…especially for cross country travelers. Unlike gas stations, there is absolutely no security at EV charging stations. Often they are located in areas behind shopping centers which are obscured from public view your chances of getting robbed or assaulted while charging are exponentially higher than filling up at a gas station.

Inexpensive, low range used EVs can be an AMAZING option for multi-car families and teenagers. They are super cheap to own and can replace gas car usage for in-town trips. I highly recommend considering one!

One HUGE problem with EV's is that a lot of people are renters. Where does a renter charge their car when they may not even have a reliable parking spot? You can't just install a suitable charging outlet in your apartment, especially if you don't live on the first floor. And with Wall Street conspiring to make just about everyone a renter it will only get worse.

All good - I’m a 26 y/o and saving for my first Tesla 💪 I’m sure there’s are lot of others like me

For me buying a used EV has one big question, How the maintenance was done, and the battery life. Need more time for consumers to see how these cars will age. And definitely, the price cut on the new Tesla pressured the price of the same product but used. The design is the same and the software is updated so it is a no-brainer that you need to cut the prices on the used ones.

1. I can't charge an EV from my apartment. 2. Batteries degrade

I like a manual transmission, I find them fun. Rev matching my downshifts and heel and toe braking is awesome and it would be very hard for me to give it up for a car that sounds like a UFO.

Something I'll add that makes them dangerous to be behind on the road is this stupid one pedal driving. I was behind a Tesla earlier today and it came to complete stop at a light with no sign of brake light until I was down to 5mph. Then they came on for about 10 seconds and off they went. The light was still red and we were on a downhill. The aggressive re-gen that allows 1 pedal driving is very unsafe. Brake lights are there to indicate to the person behind that you are slowing down. When you can go from 35mph to 5mph with no brake lights in half a blocks distance with no brake lights is absurd. the brake lights should come on as soon as you take your foot of the go pedal if you have re-gen activated.

Interest rates up, gas prices eased, Tesla price cuts and charging network issue for non-Telsa EVs. Rising electricity rates for many or at least in my area. They have pushed about 3-4 rate increases in about 14 months. Saw many posts of long lines during Thanksgiving travels for EVs. A new battery technology could crush the used market too if it was a great deal better. I like EVs, but they are still a bit risky. Hybrid and Plug-in hybrid are the better options for the average person in my opinion.

Two things impacts - Reduction in Battery capacity after few years . Addition of new features added to new card due to Rapid change in tech

Should I be documenting my negotiations with car dealers while trying to get an EV? I’ve been counting their inventories and bringing that up as a reason why I need them to do better on price….it’s a waiting game and I’m not giving up until I get a crazy deal.

One caveat. My 2020 M3P (I’m now trading in) was so riddled with issues any “savings” were completely negated. Paint peeling off, control arm issues, coolant bottle going out, to name a few. Someone I know with a model S had a window blow up.

Wait people are complaining they are too expensive and when they get cheaper that is not good also? To me this shows they are over priced and the used market corrects.

Part of why EV Prices are falling so fast is because we aren't comparing apples to apples with prices. If I buy a $60k EV. I likely got a $7,500 tax credit for it. So the effective prices was really $52,500. Now 3 years later lets say that EV is worth $40k. That would be a 33% reduction from sticker. But a 23% drop in "effective" prices. I think that's a much more accurate way to measure it. Tesla reducing costs is also a major factor. But I really think we aren't looking at the right metrics.

It makes sense if you think of them like the smartphone prices. The new ones will command premium, then value drops significantly when new ones come on the line....because they have built-in obsolescence in the non-swappable batteries that, when they need to be replaced, make up almost half the price of the vehicle....

What about high interest rates? New cars used to be around 3.25%. Now with good credit rates are 8.25%? That’s doubling monthly payments for cars that are 50% higher than an ice car. So what consumers used to spend $500 per month - those payments went to $900 or $1200 per month. Which is crazy.

I think the problem is reliability and the potential for high repair costs when the expensive components begin to fail. Also people may not have the luxury of a second car if their primary transport breaks down so it needs to be fixed quickly which is currently not always the case.

The battery replacement cost a fortune

10:33 This is something that needs to be discussed. If you have an outlet outside your house, you can charge your car. You don't need anything fancy.

Well just like electronic gadgets like phones, computers, TV's they are considered outdated when new ones come out.

All prices were up during covid, but EVs were much higher across the board. Teslas were especially high during that time, which is why their huge cuts in prices are impacting costs of all other EVs. Why would I got and buy a used ‘22 ford when I could go and buy a new ‘23 Tesla for the same amt before factoring incentives

I have several old ICEs. When one dies I will get 1 EV so I have no range worry because I can drive a different car every day. I appreciate Tesla dropping prices and competing with traditional dealers. Hopefully prices go down for all vehicles.

EXCELLENT REPORT!! Thank you. ❤

So people complained that EVs were too expensive when new compared to ICE counterparts. Now they drop 30% in resale value and people complain that those expensive EVs are now too cheap and won't hold their value. Camrys and Civics and F150s only went up about 7% from 2020 tot 2023 so they couldn't really go down (assuming normal dealer markup). Model 3 and Ioniq 5 went up about 40% so naturally they're going to tank. People who bought a Model 3 in 2019 or even a Bolt in 2019 are ahead of their ICE counterparts. I can't find any of these super cheap EVs anywhere here in SoCal otherwise I would stock up on trainer cars for my kiddos - maybe there's a glut in Montana.

The only EV that I have been interested in owning is the Aptera, a truly revolutionary vehicle, not just another car with an electric drive train.

I own a Tesla. I charge at home with my solar panels. I save $500/month on electricity and gas. I can not control healthcare costs but can control energy cost. My Tesla is 6 years old only maintenance, tires. Never visited service center. No oil filters in land fills. USA use to cheap electricity. That will change. Europeans can not believe USA does not have more energy conservation. Hawaii over 30% renewable energy primarily from private residential rooftop solar.

Just remember that used ev is useless when the battery needs to be replaced due to the wear

if theres drop of 30% in price, thats huge sign, which makes sense ev isnt suitable for many clients, less clients to but it, less demand lower the price, used ev is huge liability, just to replace the battery, thats almost 20k

2022 was insane. I bought an EV in july 2019, and sold it in sept 2022 for 86% of what I bought it for.

I would buy an EV if I could afford one. And I think I can afford one if the manufacturers didn't try to force onto me some fancy technology and paraphernalia. I just need a car that can reliably and safely take me from point A to point B. That shouldn't be too expensive

EVs have a place and share in personal transportation market. But governments should not make policies that legislate banning of gas vehicles five or ten years down the road. Choice of vehicle type should be entirely with the consumer. Also EVs should stand in the market without the crutch of government handouts or subsidies. Governments in the third world need to strengthen electricity infrastructure, that is both power generation and distribution. Existing grids are inadequate even for lighting and heating loads. It makes no sense to subsidise and promote EVs when there are frequent power interruptions due to grid inadequacies. Also other issues such as power theft, so rampant in the third world, battery quality, disposal etc need to be addressed.

For me its battery degradation anxiety. It would cost waaayy more to replace a battery pack, than it would to repair a faulty internal conbustion engine

I have two problems with purchasing an EV. One, no charging station nearby. I live in an apartment complex so charging at home is not an option and the nearest charging station is 20 miles away. Also I'm concerned about resale value. While they are high now I wouldn't want to buy a used EV with a decreased battery life. Changing the batteries in EVs is massively expensive - as much as $20K depending on the vehicle. It wouldn't be cost effective to spend tens of thousands on a used vehicle only to spend another tens of thousands a 1-2 years later on a battery change. Ultimately this is the same product track that flat screen TVs took. The tech was new and expensive but over time it fell and now they are reasonably priced. So maybe we just wait.

A used EV is a big risk given the cost of a new battery pack. Two years ago, I bought a used 2000 Honda. The engine, transmission, and frame were in excellent condition, no seal damage, no problems. My wife has put another 50,000 miles on that care with only the usual maintenance for brakes, clutch, etc, none of which as even begun to approach the cost of a new battery pack. The car is 23 years old. I am skeptical we will see any of these new EVs reaching 24 years old and still being on the road.

Holding a vehicle on average 3-4 years???? That's so ridiculous.....I kept my daily driver for 20 years before finally buying a 3-year used ICE vehicle. Spending $36K for a used vehicle every 3-4 years is SO doing it wrong. No wonder people live paycheck to paycheck...

The issue isn’t affordability in my opinion, people spend way too much on ice vehicles too. What People are afraid of is what happens your battery pack needs to be replaced? Sure if it’s under warranty it’s free but when it’s not every day is one step closer to a new $15,000 battery pack.

I have plenty of issues with EVs. Primarily, I park on the street so charging at home isn’t convenient. I also know people who lose battery and range in the winter. The cars can’t charge as fast in the winter. In addition, the range they come with isn’t confidence inspiring. And lastly(and possibly most importantly), as they get older and their batteries degrade, the range, that wasn’t great to begin with, gets even lower. So, if I get a Chevy bolt and it has 270 miles of range on a good day when it’s new, what is that going to look like on a cold day seven years from now? Most likely the usable range is going to be something like 110 miles. That really doesn't work for me.