The prices of preowned vehicles are at historic highs after the pandemic, which is great news for people who want to sell their cars.Īccording to Edmunds, the shortage is expected to last until 2023. Regardless of whether you have an electric vehicle or a gas-powered car, now is a good time to sell. This uptick in demand may drive up the value of these vehicles. The government’s added incentivizes like rebates and tax credits for the purchase of electric vehicles and charging equipment could persuade people to switch from gas powered vehicles to electric and hybrid.
Problems and concerns over charging stations and battery life are sure to lessen as technology and infrastructure catches up to the proliferation of EVs. Other brands like Jaguar, GMC and Volvo are attempting to compete in the EV market in the future with all EV or hybrid models within the next couple decades. Tesla is ahead of the game in resale value and depreciation. With the improved battery life, EV Crossover models like the Tesla Model X are expected to keep their resale value. There are some battery-powered SUVs coming on the market to compete with the highly sought-after gas-powered models. Plus, more hybrid and electric vehicles are being designed to better appeal to current auto shoppers. With more companies committing to transitioning entirely to EV models in the not-so-distant future, the used EV market is sure to improve over time. The news is certainly not all bad for electric vehicles. SUVs and trucks have significantly risen in desirability over sedans and cars, and there are still few options for EV and hybrid SUVs and trucks. Some reasons might include concerns over charging stations, convenience, battery life and style.Īnother factor affecting EV popularity are changes in consumer preferences. Evidently, people still prefer gas-powered vehicles over EV. In comparison, traditional gas-powered vehicles currently have a better resale value of 50 to 60 percent of their original valuation. Gas Powered Vehicles Hold Their Value Over Electric and Hybrid Models In fact, the average resale value of these older EVs and hybrids is less than 40 percent of the original value.
The lower quality and life expectancy of batteries in older models of electric vehicles make them harder to sell. With the advancement of EV batteries in new and future models also comes a drop in resale value in older EV models. Since batteries in these vehicles make up more than 50 percent of the vehicle’s value, the overall price of electric-powered cars is coming down. As improvements in battery technology in EVs and hybrids are being made, the price of the batteries are dropping. Advancement in Batteries Makes New Electric Battery Models More AffordableĪs it stands, current owners of older model electric vehicle are in a sticky situation. There is much debate surrounding whether an electric vehicle is a good purchase in comparison to a traditional gas-powered vehicle, as well as uncertainty surrounding future resale value of EV and hybrid vehicles. Although the change is good for environmental sustainability, it’s less clear whether EV or hybrid vehicle purchases are a good financial investment for vehicle owners. The transition from gas powered vehicles to electric and hybrid vehicles is sweeping the nation.
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