Drivers against volatility in the used car market

The used car market is fluctuating due to fluctuations in demand and economic factors, and electric vehicle drivers are facing different situations. Drivers against the volatility of the used car market and how the rise of electric vehicles contrasts with the uncertainty of the used car market.

Protection against used Car market volatility

After Tesla lowered the price of its two best-selling cars, the Model 3 and the Model Y, electric car drivers should protect themselves from fluctuations in the used car market.

These reductions can lead to a decline in the value of the electric vehicles used. This is because sellers may have to offer used electric cars that are cheaper than new models in order to attract buyers. As a market leader in electric vehicles, Tesla's move marks the beginning of a price war between competing carmakers, which will see the price of all second-hand electric vehicles on the market rise.

The difficulty of calculating the remaining prices is partly responsible for the fact that the rental rate of electric vehicles remains high. Since this is a relatively new technology, there is little data on the value of future used cars, and such an announcement from a brand with Tesla's reputation could further complicate the market.

Several factors influence the residual value, such as battery technology, fuel costs, government incentives, and consumer demand. For electric vehicles, batteries are the focus of this calculation. The capacity and service life of the battery can have a significant impact on the overall performance and value of the vehicle, and therefore also affect the way electric vehicles hold this value.

Rising costs due to rising interest rates on car financing make it difficult for used car buyers to afford electric vehicles. In addition, the increase in the supply of used electric vehicles may temporarily exceed demand.“

Recently, Cap HPI, a well-known used car price guide in the automotive industry, warned that it is becoming increasingly difficult to sell used electric cars, and as a result, prices are being lowered and sold.

Auction giant Aston Barclay reported that the average price of used electric cars will fall in the last quarter of 2022. In 2022 alone, the price of the used Tesla model 3 fell by 21%.This is an indicator of residual price volatility.

conclusion

The market for used electric vehicles is fluctuating due to factors such as fluctuations in demand, rapid advances in electric vehicle technology and the limited availability of certain models. Electric vehicles offer low cost and environmental benefits in the long run, but challenges such as battery degradation, fluctuating resale value, and further development of charging infrastructure cause uncertainty. Despite these difficulties, with the maturation of the electric vehicle industry, increasing interest in electric vehicles and supporting measures are expected to stabilize the market.