No one wants used EVs, making new ones a tougher sell too

[kobayashiGT]

Source: https://www.straitstimes.com/business/no-one-wants-used-evs-making-new-ones-a-tougher-sell-too

BERLIN – The shift away from cars with dirty combustion engines is running into a new hurdle: Drivers do not want to buy used electric vehicles (EVs), and that is undermining the market for new ones, too.

In the US$1.2 trillion (S$1.6 trillion) second-hand market, prices for battery-powered cars are falling faster than for their combustion-engine cousins. Buyers are shunning them due to a lack of subsidies, a desire to wait for better technology, and continued shortfalls in charging infrastructures. A fierce price war sparked by Tesla and competitive Chinese models are further depressing values of new and used cars alike, threatening earnings at rivals like Volkswagen (VW) and Stellantis.

Because most new vehicles in Europe are sold via leases, automakers and dealers who finance these transactions are trying to recover losses from plummeting valuations by raising borrowing costs. That is hitting demand in some European markets that were in the vanguard of the shift away from fossil fuel-powered propulsion. Some of the biggest buyers of new cars, including rental firms, are cutting back on EV adoption because they are losing money on resales, with Sixt dropping Tesla models from its fleet.

“When a car loses 1 per cent of its worth, I make 1 per cent less profit,” said Mr Christian Dahlheim, who heads VW’s financial services arm. The issues with second-hand EVs, he added, have the potential to destroy billions of euros in earnings for the broader industry.

The problems are expected to intensify in 2024, when many of the 1.2 million EVs sold in Europe in 2021 will come off their three-year leasing contracts and enter the second-hand market. How companies tackle this problem will be key for their bottom lines, consumer confidence and ultimately decarbonisation – including the European Union’s plan to phase out sales of new fuel-burning cars by 2035.

“There isn’t used-car demand for EVs,” said Mr Matt Harrison, Toyota Motor’s chief operating officer in Europe. “That’s really hurting the cost-of-ownership story.”

Companies can funnel battery-powered cars into mobility offerings and ride-sharing start-ups, but there is limited demand from these businesses. Unwanted combustion cars often end up in Africa, where their poor state causes pollution issues. That market is largely shut to EVs because it has no viable infrastructure to charge them.

[kobayashiGT]

Hmmm. Automobile company don't wanna sell car, they wanna sell you loan. Vehicle is just a vessel for that. 🤣

[ccc888]

nobody would buy a out of warranty EV too.

[kobayashiGT]

On 12/26/2023 at 10:48 AM, ccc888 said:

nobody would buy a out of warranty EV too.

someone must invent battery revitalizer machine, to rejuvenate EV battery. That will be the "servicing" for EV next time! 

[Spidey10]

unless the 2nd hand value factor in the battery replacement cost then it will remove the uncertainty of the battery replacement.

heard a batt replacement for Tesla would cost 20 grand? not sure how true thou..

[RadX]

Reported that in Canada one bloke paid $60k for battery replacement due to a minor accident

 

like …dafug 

[inlinesix]

 

On 12/26/2023 at 10:53 AM, kobayashiGT said:

someone must invent battery revitalizer machine, to rejuvenate EV battery. That will be the "servicing" for EV next time! 

SG has company that recycled these batteries into offsite battery storage.

[inlinesix]

On 12/26/2023 at 11:26 AM, RadX said:

Reported that in Canada one bloke paid $60k for battery replacement due to a minor accident

 

like …dafug 

and you drive EV

😂

[ER-3682]

This is Western Countries,in Singapore you sell at Paper Value..sure got People buy.....

[ER-3682]

@Jamesc

Edited December 26, 2023 by ER-3682

[Benarsenal]

Wonder if more manufacturers will adopt battery swap technology like Nio?

[RadX]

On 12/26/2023 at 11:47 AM, inlinesix said:

and you drive EV

😂

Buy n throw lo😂

[inlinesix]

On 12/26/2023 at 11:24 AM, Spidey10 said:

unless the 2nd hand value factor in the battery replacement cost then it will remove the uncertainty of the battery replacement.

heard a batt replacement for Tesla would cost 20 grand? not sure how true thou..

What's your annual mileage?

[ccc888]

@ER-3682 standard 8years warranty on batt right?

So goto recalculate yearly depreciation based on 8years and remaining paper value hahaha

[ER-3682]

On 12/26/2023 at 12:04 PM, ccc888 said:

@ER-3682 standard 8years warranty on batt right?

So goto recalculate yearly depreciation based on 8years and remaining paper value hahaha

Not Sure,but i heard some People said,the Agent won't change the WHOLE Battery,only change certain Cells.

[ER-3682]

On 12/26/2023 at 11:58 AM, Benarsenal said:

Wonder if more manufacturers will adopt battery swap technology like Nio?

Maybe in China..Yes..but not Possible in Singapore.

[Jamesc]

On 12/26/2023 at 11:51 AM, ER-3682 said:

@Jamesc

That time I will stop selling used cars

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and sell ice cream.

Must take advantage of future of consumer demands

Because of global warming everyone so hot will love a nice cool ice cream!

 

[ccc888]

On 12/26/2023 at 11:58 AM, Benarsenal said:

Wonder if more manufacturers will adopt battery swap technology like Nio?

Unless batt weigh as light as 20kg?

right now batt weigh 500kg up to 1 ton hahaha

Maybe 20years later hahaha