Resale values for electric vehicles (EVs) have cratered as a slackening of consumer demand has weighed down prices.
Automakers have offered a flood of price cuts on new models in a bid to prop up sales amid lower-than-expected demand, according to The Wall Street Journal. The discounts have caused EV resale values to plummet, with the average selling price of a three-year-old EV falling to $28,400, a 25% decrease from the start of 2023 and a lower price than that of a internal combustion vehicle of the same age.
As a result, as of August EV owners owed roughly $10,000 more on their car loans than their vehicle was worth, up from $8,000 at the beginning of 2023, the WSJ reported.
“They kept reducing the price of the cars, which killed the used-EV market,” Christian Lange, a former 2018 Tesla Model 3 owner, told the WSJ. Lange saw his vehicle’s value decline by $10,000 relative to what he owed on his loan following the 2023 price cuts.
Buying business, causing massive depreciation, a race to the bottom, and ruining the motor trade as they do it!
But yeah, EV’s are selling just fine! and if you think that you are a fucking idiot
“Average discounts on EV’s are now almost double what they are on ICE vehicles”… pic.twitter.com/rLvax7d4WM
— Barrie Crampton (@BarrieCrampton) October 10, 2024
Republished with permission from Daily Caller News Foundation
