In recent times, the electric vehicle (EV) industry has been abuzz with news about the latest models, developments in subsidies, and the race towards a cleaner, sustainable future. However, amidst the noise, one facet remains largely overlooked—the used electric vehicle market. In this blog post, we delve into the less-explored realm of pre-owned electric vehicles, shedding light on its size, trends, and the factors shaping its dynamics.
Unveiling the Numbers:
Auto Remarketing, a notable industry trade publication, provides valuable insights into the used EV market. According to a survey by Experian, a major credit bureau, the financing data for used electric vehicles in 2021 revealed that 60,000 pre-owned electric vehicles were financed. This might seem like a substantial number, but when broken down, it averages to approximately a thousand vehicles per state.
The subsequent study in 2022, while lacking complete numbers, indicated that by early summer, 42,000 used electric vehicles had already been financed for the year. Extrapolating this data suggests a potential 70,000 to 80,000 used EVs financed for the entire year. While this marks an increase from the previous year, the figures underscore a relatively modest volume of transactions in the used EV market.
Decoding the Trends:
Why the scarcity in used electric vehicle transactions? One factor lies in the historical context of EV production. The widespread manufacturing of electric vehicles didn’t gain momentum until the late 2000s, with significant production starting around 2015 or 2016. Given that many EV owners tend to keep their vehicles for a more extended period, the influx of used EVs into the market has been limited.
Electric vehicles often serve as secondary or tertiary vehicles, with owners not replacing them as frequently as their primary vehicles. This leads to a slower rotation of used electric vehicles in the market. As the industry approaches the six to seven-year mark from the peak of EV production, we may witness a shift in the availability and demand for used EVs.
The upcoming years will be crucial in determining the trajectory of the used electric vehicle market. Questions arise: Will people increasingly opt for used EVs? Are current EV owners considering trading in for newer models? The comment section awaits your thoughts.
One notable aspect of used electric vehicles is their longevity. Unlike traditional gasoline vehicles, where high mileage often indicates wear and tear, EVs can still offer substantial lifespan if their batteries are well-maintained. The durability of electric motors, which power these vehicles, plays a pivotal role in the extended life expectancy of used EVs.
As used electric vehicles gradually make their way into the market, it’s a prime opportunity for consumers to consider sustainable alternatives at potentially lower costs. Whether it’s for economic reasons or environmental consciousness, the used EV market presents an intriguing landscape that will likely witness increased activity in the years to come. So, would you consider purchasing a used EV, or does the allure of a brand-new model still hold sway? Share your perspectives in the comments below, and let’s explore the future of the electric vehicle industry together.