2024 is the year of the second-hand Used Electric Cars

2024 is the year of the second-hand Used Electric Cars

Most consumers cite cost, range, and ease of charging as factors in their decision not to purchase an electric vehicle. But these are beginning to get better little by little. Primarily the economic one, which is undergoing a real revolution this year due to the recent sales of several businesses that have engaged in a genuine pricing war.

While some companies, including Tesla, Volkswagen, BYD, and others, have offered reductions, very few have kept their prices the same after the epidemic in 2020.

Supply chains broke that year, much like the infamous “chips.” Certain semiconductors, the majority of which came from Taiwan, had a sharp decline in supply, leading to a shortage as demand outpaced supply. As a result, new automobile costs have skyrocketed.

That carried on through 2021 and 2022 until January of last year when Tesla shocked everyone by announcing the beginning of a sharp price reduction.

According to statistics from the US market, Elon Musk’s actions have set off a very significant domino effect, with the Tesla Model Y Long Range Dual Motor reaching a maximum price of $65,990 between June and December 2022. Then, in January 2023, there was a decline, bringing it down to $52,990 and continuing to the present $48,990.

That indicates that the Model Y’s price has decreased by 25.7% in only a single year. We can also apply to the Model 3, whose price for the Long Range Dual Motor variant is now $46,990, or 18.9% less than it was in mid-2022, after a $1,000 price rise in the US.

Pressure on the market for second-hand Used electric cars

Although Tesla, as we have said, initiated the fight, others have joined at the risk of losing market share and witnessing an increase in their stocks in any other case.

That indicates that 2024 will be a favorable year for people looking to purchase a used automobile because used car prices are under pressure due to the decline in the price of new cars. Conversely, due to the decline in the value of their models, it is terrible news for sellers.

There are several highly notable instances, such as the Audi E-Tron. The 50th iteration of the Hoops brand’s first electric vehicle boasts a 230 kW (308 HP) engine and a practical 64.7 kWh battery, which should be sufficient to provide this model access to a range of 341 km WLTP.

For about 36,500 euros, we can get a family SUV that is 4.9 meters long, has a roomy cabin, 660 liters of trunk space, and is well-equipped with the standard level of quality found in Audi vehicles. a model that, from what we recall, originally cost 89,177 euros.

The Tesla Model 3 is among the most well-liked ideas available. A model has had a generational renewal along with a price decrease. A newly released version that is far better than the prior one and doesn’t cost more.

Units from the 2019 Performance edition, which are notable for their potent propulsion system and start at just 33,000 euros, are available on the second-hand market. These units have just 57,000 km on them. 52% less expensive than new.

The Volkswagen ID.3 is the last option, which has witnessed a sharp price decline. In terms of size, power, and autonomy, the German compact is a well-rounded substitute. 

Its robust 150 kW (204 HP) motor in the Pro Performance model has a range of 429 km WLTP and is fueled by a practical 58 kWh battery. A 2020 model with merely 31,000 miles and a price tag of 23,490 euros is especially notable for its capable fast charging technology, reaching up to 130 kW.

In addition, technology is always developing, meaning that electric cars are becoming more efficient and autonomous while also becoming less expensive. As a result, compared to models that are two or three years old, newer electric automobiles feature more efficient technology. Something that has not been encountered with internal combustion vehicles, which do not undergo abrupt increases like a 200- or 300-kilometer range increase. Its value is more consistent than that of electric ones.

Trust is another factor to be considered, and Tesla’s recent pricing adjustments make buyers less confident when new model purchases. You never know, it will be 10% less a week later. An element that can cause sales to slow down this year is something the North American manufacturer is already thinking about, noting things like the high cost of borrowing money and the conflict in the Red Sea. That would result in a dip in growth from last year’s 38% to an expected 20%.

A pricing battle will particularly hurt conventional manufacturers that have chosen the direct sales approach in recent years and have lower volumes and profits. A system has advantages like pricing control, but disadvantages include the brand bearing the financial burden rather than the dealer if automobiles pile up in shops.

The conclusion is that 2024 will be an excellent year to purchase an electric vehicle, both new and used. Customers can take advantage of genuine discounts that enable them to switch to an electric vehicle for a far lower price than they could have a few years ago.

Of course, It will be attentive since the bargains usually last very little.

Sales graphics source – Skills