- The supply of new EVs outnumber used ones at a 3 to 1 ratio.
- Kia, Ford, and Chevrolet are the most searched-for brands by new EV buyers.
- Searches for Tesla are the biggest for used EV shoppers.
Unfortunately, or fortunately, if you’re a bargain hunter, you probably aren’t hallucinating. There are crazy deals on EVs of all types, both new and used. These deals are great for buyers on a budget; they’re able to get far more car with less money. Patently, this isn’t great news for automakers, though. This depression in buying prices is, in part, due to an oversupply of vehicles.
Cars.com has released some information on what the heck is going on here.
This is not to say that EVs are entirely undesirable and unwanted. No, that’s not true. Cars.com admits that the demand for EVs is still increasing. Searches for new EV models are up 4.4% compared to last year. But, EV supply is way out of whack. EV supply is up more than 60% compared to last year, and the cars themselves are lingering on lots for longer. Cars.com says they’re staying on lots for an average of 82 days, nearly 20% higher than last year.
Demand and supply for used EVs are also up significantly compared to last year, but prices have fallen significantly. On average, used EV prices are 7.8% lower than last year. Interestingly, the number of new EVs outnumber used EVs on the market at a 3 to 1 ratio.
The demand for used EVs is continually growing because of the sinking prices. Cars.com noticed that searches for used EVs are five times higher than new EVs. A lot of this has to do with the rapidly falling prices. The scary-low resale of the Tesla Model 3 might not be great news for buyers wanting to trade in or move on, but its low pricing has a chokehold on used EV hopefuls. For new buyers, Kia, Ford and Chevy are the searches that are enticing new buyers.
I see why. Cars like the Kia EV9 and Chevy Blazer EV have stunning lease and purchase deals, often offering monthly payments that wouldn’t be far from a used EV. Even in Ohio, which doesn’t have any state-level EV incentives, I’ve seen dealerships advertise Hyundai Ioniq 5s, Ioniq 6s, and Kia Niro EVs for lease prices well under $200 a month. That’s a steal.
Consider the fastest-selling EV models: the Toyota BZ4x and Subaru Solterra occupy third and fifth place, respectively. They aren’t great cars, but incentives have turned them into incredible deals.
Now, this stuff probably isn’t sustainable, which is why so many automakers are reconfiguring their EV plans. Automakers want to rein in supply, likely hoping to get that pandemic-era sales where supply couldn’t hope to meet demand for vehicles of all types.
That’s probably never coming back. It’s time for automakers to face the music, but hopefully, it won’t be at the expense of reasonably priced EVs for all.
Contact the author: kevin.williams@insideevs.com
