QOTD: Why Are Used EV Prices Dipping?

Tim Healey
by Tim Healey

Today's TTAC podcast was all about exploring why used EV prices have fallen so much.

I don't want to spoil the episode -- go listen! -- but a few different culprits were identified. An increase in supply, the challenges of EV ownership, the macroeconomic challenges facing most of us, and so on and so forth.

Those factors, at least, are what Karl Brauer and I chatted about. Did we miss anything? Do you have another theory?

Sound off below.

[Image: Chevrolet]

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Tim Healey
Tim Healey

Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.

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6 of 105 comments
  • Mike Mike on Jun 17, 2024
    Anyone who pays over MSRP for that car is crazy. Northeast dealers are not, they are offering discounts on them. A new Ioniq 5 SEL AWD msrp is $53,275. Trade in value for 1 year old w/12k miles is $23,000 - About 43% of value in 1 year. If I had a guess, the lease residual value on of these cars is around there, after 4 years and 48k miles. SCARY
    • See 1 previous
    • 28-Cars-Later 28-Cars-Later on Jun 19, 2024
      @Sunny They always did, some even on lot poison such as this. What's particularly less than intelligent here is: No one wants them andWho is financing these pricey things at 7%+? Part of the reason less popular stuff gets sold at all is captive financing, there is no such thing once its used which is why you'll sometimes see such steep drops in resale - and the banks like to know they could potentially profit on repossession as opposed to take it in the shorts and chase the defaulter in small claims for the difference (or just charge it off). Teslas in the later '10s had screaming resale because so many used purchases were cash buyers because hip and trendy. Don't think too many cash buyers are saying, I'd like milquetoast on wheels for all the money.
  • Mike Mike on Jun 17, 2024
    well they can ask for whatever they want. If you pay 31k for that car, plus 6% tax/tags, your around 34k otd. If you believe in KBB, your trade in value is $23k for excellent. Also, Hyundai TODAY just put out extra employee incentives, the Ioniq 5 EV SEL AWD has an extra $7,800 off.
    • See 1 previous
    • SunnyGL SunnyGL on Jun 18, 2024
      Well, I'd go Ioniq 5N if I could... but looking at Edmunds lease calculator, which seems fairly accurate, it's showing 50% residual on a 3yr/36k mile lease on an SEL AWD and a $10k discount, so yeah scary if it's down to 43% after 1 year. No one is going to be buying out that lease.
  • ToolGuy I AM PLACING [sic] NICELY. There is NO NEED TO BAN ME. Personally I do lots of things which DON'T MAKE SENSE, sometimes to myself, often to others. WHO ELON MUSK ENDORSES is really kind of NONE OF MY BUSINESS. It is a FREE COUNTRY, in some ways, still. I wish I knew how to FORMAT MY COMMENT better. I USED TO KNOW HOW, maybe I am losing it slowly (lot of that going around, JUST SAYING).
  • Aja8888 I can't read those whole thread without throwing up....
  • ToolGuy Maybe I will GIVE IT A LISTEN. Probably when I'm MOWING THE LAWN. Probably with a BATTERY OPERATED MOWER. (There are also batteries IN MY HEADPHONES. And IN MY PHONE.) Does anyone remember how to make a NEW PARAGRAPH?
  • ToolGuy I am NOT SURE WHAT TO SAY. In fact I'M NOT EVEN SURE WHAT I JUST READ. I paid a premium for my last cordless drill/driver because it has a hydraulic front end which PRODUCES LESS NOISE AND VIBRATION.
  • ToolGuy Tim, THANK YOU FOR THE ALL CAPS. I think it ADDS A LOT to the discussion. I might USE it MYSELF in the future. Have a GREAT WEEKEND.