..Exactly existing growth in EVs in US (and may I add China) is driven by Sugar Rush of price cutting by EV makers
..and even with that, EV growth has decelerated, i.e at slower pace but still growing
..and these price cuts won't last long, and after some time, when all those who have been enticed to buy due to the price cuts have done so, demand would start to moderate.
..am sure you know this as a consumer yourself.
Sales of used EVs are SURGING -
But I caution you: What we’re seeing right now is a SUGAR RUSH.
Consumers are craving affordability… And Used EVs are simply providing affordability at *this* very moment.
It’s not complicated:
1) Implement big, unprecedented price cuts to *new* EVs
2) Release $4,000 tax credits for *used* EVs 3) And voilà … you’ve created the PERFECT storm for a surge in *used* EVs sales.
“But why?!?” Because the car markets work in UNISON.
When NEW car prices drop, guess what happens to comparable, 1-3 year old USED car prices?
They ALSO drop… wait—don’t jump to conclusions.
• This DOESNT mean EVs won’t grow from here .. (In fact, I think they most EV segments will)
• This DOES mean that the current demand for used EVs is being driven by an artificial spike in affordability… And *that* is being driven by an unprecedented decline in *new* car prices, coupled with hefty govt tax subsidies…
The bottom line? Consumers should capitalize on this. Dealers should capitalize on this.
Because one thing is for sure, it won’t last forever.
