Faced with the difficulty of obtaining a new electric vehicle in a reasonable time, an impressive number of consumers are turning to second-hand models, but with the soaring prices of used vehicles, it is better to exercise caution before concluding a transaction.
It’s a bit upside down in the used car market. Usually, a vehicle depreciates as soon as it leaves the dealership, but today, used vehicles sometimes look like investments, particularly certain models of electric cars.
For example, last December, the average price of a used Tesla Model S increased by 41% compared to December 2020 according to data from an analysis carried out by the vehicle sales platform AutoHebdo.
“The increase in the value of used vehicles is unheard of,” says Benoît Béland, Senior Marketing Director of AutoHebdo. Dealerships are snapping up our used vehicles,” and this is particularly the case for electric vehicles (EVs), he explains.
In Quebec, searches for EVs on the AutoHebdo site increased by 85% in March 2022 compared to the same period last year and the number of consumers who are thinking of plugging in and asking for information from dealerships via the AutoHebdo platform increased by 1218% in one year.
In a context where prices are soaring and where supply no longer meets demand, we must be particularly careful and analyze prices carefully, suggests the senior marketing director of AutoHebdo. “On our platform, we have an algorithm that will compare all the prices of similar models in real time, so if we refine our search, it’s super easy to see if the price being asked is above the average or below average,” says Benoît Béland, who adds that even in this unprecedented context, there are good opportunities for consumers who take the trouble to use the right tools and to search carefully.
Profitability
CAA-Quebec automotive expert Jesse Caron gave a lecture on the myths and realities of EVs and another on buying a used electric vehicle at the Montreal Electric Vehicle Show this weekend.
According to him, buying an electric vehicle, new or used, is generally more profitable than buying its gasoline equivalent.
Jesse Caron supports his statements with very recent data analyzed by his team in anticipation of the Montreal Electric Vehicle Show concerning used vehicles.
These estimates indicate, for example, that an electric 2016 Kia Soul costs nearly $6,000 more than its gas-powered version on the second-hand market, but it avoids spending an average of $2,750 on fuel per year. The electrified version therefore becomes a “better deal” after just over two years.
Have the battery analyzed
Jesse Caron strongly advises consumers to have the battery of the used vehicle they intend to buy analyzed before concluding a transaction.
“As they age, there is a loss of autonomy which is natural, the batteries degrade over time”, indicates the automotive expert of CAA, specifying that this is particularly the case for the first electric vehicles arrived on the market about ten years ago.
It is possible to check the state of a battery by looking at the screen of certain electric vehicles, “but it is better to find a workshop which will carry out an examination with devices which will precisely measure the percentage of degradation of the battery,” he says.
According to AutoHebdo, two-thirds of Quebec consumers consider that their next vehicle will be an electric vehicle.