Why Used EV Prices Are Falling

Used EV prices are falling. Studies show that used EV prices fell somewhere around 30 percent in September and October 2023 from the same period in 2022. Used overall vehicle prices including ICE, hybrid and EVs declined by only around 5 percent. It bodes well for buyers, but some say it is yet another sign demand is faltering and that consumers may see EVs as a bad investment. Others say those fears are overblown. Interest rates are high and consumers are pulling back on spending. And despite price drops, EVs are still expensive.

Chapters:
2:00 Introduction - Why used EV prices are dropping
2:08 Chapter 1 - What is happening and why
7:33 Chapter 2 - The demand debate
11:05 Chapter 3 - The future

Producer: Robert Ferris
Editor: Natalie Rice
Animation: Christina Locopo, Andrea Schmitz, Jason Reginato
Senior Managing Producer: Tala Hadavi
Editorial Support: Jeniece Pettitt
Camera Support: Shawn Baldwin

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online

#CNBC

Why Used EV Prices Are Falling

[grgggfb]

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.

[nikolyevic]

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

[wendypierce]

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

[Argedis]

EVs will ruin the used car market. No one will want a 10yr+ used EV that will need a $20k battery replacement.
Well maintained used ICE 10yr+ can still last a very long time.

[michaelbartley]

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.

[iskerop]

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.

[lambertois]

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 !!!

[gabealexander]

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).

[TreyJam]

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.

[LJLion]

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.

[quonslecn]

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

[rof]

Battery life and range limitations are issues that remain unresolved.

[conchobar]

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.

[bhildyard]

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

[davehope]

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

[whatsay]

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?

[Starship]

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.

[WindowsR]

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.

[missgibsen]

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

[Drbettencourt]

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