The used Tesla and electric car market is expanding significantly — thank you, Hertz! (and speed up auto)

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Following the meme headline “EV Sales Are Declining,” a new trend is emerging in the media highlighting America’s increasingly attractive used electric vehicle market. There's actually something to this, and it's interesting to dig deeper.

First of all, look at electric vehicle sales (or, one might say) in the United States. tesla Sales) really started to boom in late 2018 after Tesla found a way to ramp up Model 3 production and deliveries.

Still, if we look back at the last two bars (quarters) of sales in 2018, they are paltry compared to the quarterly sales of the past couple of years. But they also only Sales began early in North America. In any case, considering that many owners start selling cars purchased new after their 3-5 years, we can see that we are starting to enter a period when more Teslas will enter the used car market. . (As for non-Tesla EVs, even if we look back at the full year of 2020, the number of non-Tesla BEVs sold was only 38,171 units, so there is still no major impact. In 2021, the number of non-Tesla BEVs sold was 105,263 units. However, this is at least becoming interesting, given that many new car buyers will part with their car after three years, and the used car market will see more and more competition from non-Tesla EVs from 2024 onwards. It should go.)

But all of that is a long introduction to the core part of the story that we're focusing on today. That's the fact that Hertz is now selling off thousands or tens of thousands of electric cars it bought over the past few years.

I've written about this before. Hertz and other rental car companies also decided to make a big move to electric vehicles a few years ago. Now Hertz is starting to sell these in large quantities (he fell short of his goal of 100,000 Tesla by the end of 2022). Part of the reason is because rental companies have to keep their vehicles fresh and get cars through them faster than the average Joe. Part of that is due to the fact that Tesla wears out its tires faster than expected, maintenance and repair costs are higher than expected, and repairs are taking longer than expected. This is a pretty serious problem for rental car companies. Part of this is due to the fact that renter education is abysmal, which is hurting EV rental and adoption.

In any case, the important thing right now is that Hertz is selling thousands of used Teslas and other electric cars. You can shop here. In my area alone, Hertz reports there are 1,736 electric cars for sale. Below are some screenshots.

As you can see, in addition to the Tesla Model 3, there are plenty of Chevrolet Bolts and a sprinkling of other electric vehicles as well.

Of course, this opens up the market even more, but as always, there are things to be aware of in the used car market. Hertz rental cars were put into serious use for more than just living in a retiree's garage and taking short trips to Publix or the golf course. Therefore, you may want to take a closer look to see what kind of damage these vehicles actually have, what kind of maintenance has been done, and whether they have been exposed to the environment. Nevertheless, overall, there should be plenty of bargains to be had on Hertz's used EV platform. Also featured are cars with less than his 10,000 miles on the odometer (likely partially influenced by his Hertz's decision to prematurely cut his EV fleet) .

I'd like to hear from anyone who has bought a car there or is considering buying one.

What does this Hertz used EV market mean for the market as a whole?

Interestingly, this story was sparked by an article in the UK. BBC. The article began:

For the first time, consumers will be able to purchase a vast array of used EVs. Will the undecided driver buy it?

20,000 Teslas are about to flood the U.S. used car market as car rental giant Hertz looks to cut its electric car fleet by a third.

For drivers, it's a chance to get a Tesla at a price well below market value. His website at Hertz Car Sales has over 200 used Teslas for sale for under his $25,000 (£19,800) at the time of writing. By comparison, the company's cheapest product, the new Tesla Model 3, costs from his $35,990 (£28,500). These prices are even cheaper than the US's cheapest new EV, the Nissan Leaf, which costs around $29,000 (£22,965).

Looking more broadly, there are several issues to consider. First and foremost, the EV market is maturing. The presence of used cars is becoming more prominent, and most people buy used cars instead of new ones. It will change some things about the new car market as well. New car buyers can probably expect their car to be worth a little less than it was a few years ago. In the market, competition is intensifying not only between used cars but also between new and used cars.

It also means that car companies need to be more competitive in the new car market. If there are thousands or tens of thousands of used electric cars on the market that are not very old or have very long mileage and are selling for $20,000 or $30,000, then the base price may be $40,000 or $50,000. It will be even harder to find buyers for dollar EVs. Buyers who previously “forced” to buy a new Tesla Model 3 or Tesla Model Y may feel safer buying a used model at a better value at this time.

“With increased supply and manufacturing, EVs are becoming more affordable. But for most people, buying a new car is still too expensive, so most people are considering moving to a used one. ” said Milad Davoodi, COO of Xcelerate Auto. clean technica.

There are also questions about how much these used EVs will actually sell. If people worry too much about battery deterioration (which they probably shouldn't, but there's been so much hype about this issue for years), they can be afraid to buy a used electric car. There is a gender. In fact, this is one of the key places where his Xcelerate Auto comes into play. “EVs are simpler to manufacture and have significantly fewer parts overall than gasoline vehicles. This means that the car maintenance that we have grown up understanding is virtually ineffective. However, although the number of parts is small, the replacement cost in the event of a failure is extremely high. Since most are electrical components, if a failure occurs, replacement rather than repair is almost always the solution. That means the cost of remediation will be significantly higher. This is why EV warranty options are an important variable in the consumer decision-making process.” added Davoudi.

“A growing number of electric vehicles are being sold and serviced through direct-to-consumer (DTC). Products and services built around traditional models do not work in favor of EV consumers,” said KJ Gimbel, CEO and founder of Xcelerate Auto. “Companies must change with the industry landscape and design and build processes to accommodate the DTC ownership experience.”

surely. It's a new world. New opportunities are emerging.Hearts and In its own way, Xcelerate Auto is bringing us to a new phase of the electric vehicle revolution or electric vehicle era. These are fascinating times, but there is still much to learn. There are also some great deals on the market.

For more information on these topics, we recommend our recent podcasts. Gimbel and Davoodi (link to Spotify there or embedded via SoundCloud below). They are fascinating listens. You can also read more here.

If you have learned anything about buying and selling used electric vehicles, whether connected to Hertz or not, we would love to hear from you.