The demand for used electric vehicles is soaring, driven by a chip shortage affecting new vehicle production. This surge, highlighted in a recent LA Times article, illustrates how some Tesla owners are flipping their cars for profit, showcasing the growing allure of electric vehicles in the used car market.
Supply Constraints and Popular Models
Late-model electric vehicles, like Hyundai, Kia, Porsche, Audi, and Tesla, are in high demand. These models are either sold out at dealerships or fetch substantial prices in the resale market, reflecting the fervor among buyers for these particular brands.
Implications for Buyers and Sellers
If you’re considering buying or selling an electric vehicle, this market trend presents opportunities. Sellers might capitalize on the current demand by selling their vehicles now, especially as new car inventory is anticipated to improve by the end of the year or in 2023. For buyers, exploring options through leases or connections with those returning leased vehicles could offer a chance to acquire these sought-after cars at reasonable prices.
Shifting Dynamics in the Automotive Industry
The push for a higher percentage of electric vehicles, both by government agencies and manufacturers, contributes to the urgency of circulating these cars. Electric vehicle sales have climbed from one percent to roughly seven or eight percent of all sales in recent years, indicating a significant shift in consumer preference away from gasoline-powered vehicles.
The future trajectory of electric vehicle adoption remains uncertain. However, the current momentum suggests a potential for further acceleration. As gasoline vehicle sales decrease, the appeal and market value of used electric vehicles continue to surge, potentially presenting both financial opportunities and challenges for buyers and sellers alike.