A recent poll from online auto marketplace Edmunds found that 47 percent of potential EV buyers want to spend $40,000 or less on an electric vehicle, a standard not many EVs in the United States meet.
For budget-conscious consumers, buying a used EV hasn’t always been an option. In fact, during the pandemic and resulting chip shortage, some used Teslas cost more than new ones.
That has changed. Thanks to Elon Musk’s terrible, horrible, no good, very bad year, used EVs are more affordable – and thanks to improved battery technology, less likely to leave drivers nervous about running out of juice.
Why used EV prices are falling
Shortly before Musk told executives to go “absolutely hard core” when it came to laying employees off, Tesla shaved $2,000 off three of its models, which came after several price cuts over the last year.
Tesla owns 51% of the EV market, according to Kelley Blue Book, so when it makes a move, other automakers follow. That downward pressure has affected the cost of used electric vehicles, with sticker prices falling by around 10% since last year, said Liz Najman, director of market insights at EV research firm Recurrent.
Meanwhile, Hertz has been flooding the market with used EVs. Back in 2021, the company pushed a new electric vehicle campaign with retired NFL superstar and recent roast victim Tom Brady as its spokesperson. The plan included buying 100,000 Teslas and renting EVs to Uber drivers.
The strategy didn’t work. This year, the company has committed to culling its electric fleet by 30,000 vehicles, and its website is full of used Chevy Bolts, Tesla Model 3s, and other EVs for sale.
