Posted on 12/25/2023 7:19:12 PM PST by Oldeconomybuyer
BERLIN – The shift away from cars with dirty combustion engines is running into a new hurdle: Drivers do not want to buy used electric vehicles (EVs), and that is undermining the market for new ones, too.
In the US$1.2 trillion (S$1.6 trillion) second-hand market, prices for battery-powered cars are falling faster than for their combustion-engine cousins. Buyers are shunning them due to a lack of subsidies, a desire to wait for better technology, and continued shortfalls in charging infrastructures. A fierce price war sparked by Tesla and competitive Chinese models are further depressing values of new and used cars alike, threatening earnings at rivals like Volkswagen (VW) and Stellantis.
Because most new vehicles in Europe are sold via leases, automakers and dealers who finance these transactions are trying to recover losses from plummeting valuations by raising borrowing costs. That is hitting demand in some European markets that were in the vanguard of the shift away from fossil fuel-powered propulsion. Some of the biggest buyers of new cars, including rental firms, are cutting back on EV adoption because they are losing money on resales, with Sixt dropping Tesla models from its fleet.
“When a car loses 1 per cent of its worth, I make 1 per cent less profit,” said Mr Christian Dahlheim, who heads VW’s financial services arm. The issues with second-hand EVs, he added, have the potential to destroy billions of euros in earnings for the broader industry.
The problems are expected to intensify in 2024, when many of the 1.2 million EVs sold in Europe in 2021 will come off their three-year leasing contracts and enter the second-hand market.
(Excerpt) Read more at straitstimes.com ...
If you buy one of these EV pieces of crap you may be stuck with it forever. The wrecking yards won’t take them.
Speaking of EV’s, I haven’t seen TeslaGator for quite some time.
The reality of simple economics hits the used electric car market.
I bought new cars for two of my kids this year for college. Both are regular gas engines.
“...dirty combustion engines”
Prejudicial right out of the gate. You want “dirty”? Look at the end-of-life of an EV. What do you do with the hundreds of millions of spent batteries? You want “dirty”? Look at the hundreds of millions of tons of materials needed to make EVs. You want “dirty”? Look at the burned cars and houses, fires that cannot be extinguished.
The original owner drives the EV. Then, as the EV battery gets close to it life expectancy, the seller tries to unload it because he/she does not want the expense of the new battery. The car resale value drops fast because nobody else wants to buy a ca that needs a new expensive battery soon.
This is the real reason for the drop in values for EV’s.
Exactly.
There is no way I would buy a used EV,
Even if this technology were perfected for safety, charging times, last of charges, prices, maintenance...there remains a practical problem: What if you have a long term power outage? Imagine after a major winter storm knocking out your power for several days, or even a couple of weeks as sometimes occurs...even with the roads improved enough to allow for travel, you still cannot get anywhere to get anywhere for provisions. This would put even more pressure on public services having to rescue and come to the aid of even more people who would not have needed aid, and those would have needed aid may have to go without it.
>The original owner drives the EV. Then, as the EV battery gets close to it life expectancy, the seller tries to unload it because he/she does not want the expense of the new battery. The car resale value drops fast because nobody else wants to buy a ca that needs a new expensive battery soon.
Close enough IMO. Many of these things have good warranties on battery/drivetrain, and reasonably maintained the degradation can be minimal. Problem for the used car buyer is there’s no way a dealer is going to let you do the kind of poking about that would let you know if the owner abused the battery or treated it nicely any more than they’ll let you do an engine teardown to look for valve wear.
In the case of earlier EVs where the brand-new ranges were 80 or 150 miles, a badly treated car is pretty much poo. New ones are 250, 350, even 500 mile range.
Life in tech; the new is obsolete and worthless quickly.
This is what the Powers That Be want. They want you dependent on them for everything. Slaves can't be self reliant.
I think someone will come up with an insurance-like system where the battery replacement risk is spread across a wide range of models, years, mileage, and use cases in order to limit the financial risk of used EVs.
Compare to an ICE vehicle. Now you can drive up to 200,000 miles with it.
The FEDERAL GOVERNMENT will come up with an insurance-like system where the moral hazard of battery replacement risk is spread across all society through big tax increases.
Think hurricanes, no power for weeks and you’ll wait for hours to fill your car.
I came up the turnpike once and the line to get the love bugs off your window was 45 minutes. I see people dieing during a storm trying to evacuate.
I wouldn’t even buy an EV no matter what!
“This is the real reason for the drop in values for EV’s.”
indeed ... and of course that very reason is ignored by the propaganda articles, which tries to blame the resell issue on a bunch of nonsense that excludes everything BUT the battery issue ...
no one in their right mind would buy a used EV with a battery of unknown capacity or even one with a known capacity that’s about gone because a new battery costs as much (or more) than a whole brand new EV!
It's considered good form on FR to ping a FReeper that you make reference to. Granted, you said "TeslaGator" but we know who you meant. :-)
Let’s face it. Joe Pedeaux’s EVs are crap.
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