Categories: News

Stopping sales of second-hand EVs threatens the industry, but offers you great opportunities! - AutoReview.nl

The subsidy pot for second-hand electric cars may be empty, but the demand for used EVs is disappointing, also worldwide. As a result, sales of new electric cars are also slowing down. But this may be good news for the private lease customer.

According to an analysis of Bloomberg the transition to electric cars is once again encountering obstacles. One is that consumers are not eager to buy second-hand EVs. This doesn't just affect the second-hand market, where prices for battery-powered cars are falling faster than petrol cars. It also undermines the market for new EVs.

Stay up to date on second-hand and new EVs with our newsletter.

Tip

Save on your car insurance with AutoBewust from Interpolis

You make your own choices regarding coverage.
This way you can put together the car insurance that suits you.
And you keep the premium low.

Fear of rapid decline in value of EVs

How is the market for new EVs being undermined? Due to the uncertainty about the residual value. If second-hand EVs drop in value so quickly, the math for a new one suddenly doesn't look interesting at all.

The residual value issue is separate from the known reasons why consumers are reluctant, such as the still high new prices and disappointing or declining purchase subsidies. The fact that manufacturers are making promises about new battery technologies, cheaper cars with a greater range and faster charging options also plays a role. Moreover, limited charging infrastructure still plays a role in many countries.

Own fault, big bump for Tesla

But the industry must also take action. So have Tesla and Chinese manufacturers like MG in BYD has unleashed a price war that undermines the prices and residual values ​​of both new and used electric cars. As a result, car manufacturers' profits can be as high as Volkswagen and Stellantis (among others Opel, Peugeot, Citroën, Fiat in Jeep) come under pressure.

An additional problem is that the majority of electric cars in Europe are leased. In many cases, the depreciation component in the lease rates will not prove to be cost-effective. This will be a financial problem for manufacturers, dealers and leasing companies alike.

1.2 million second-hand lease EVs are on the way

This is expected to become even worse in the coming years. After all, many of the 1.2 million EVs sold in Europe in 2021 will end up on the second-hand market after their lease contract expires.

This of course has an impact on the profitability of companies, but also on consumer confidence. And all this could have consequences for the ambitions to limit CO2 emissions from road traffic and to phase out cars with combustion engines.

'Destroying billions'

“The problems surrounding used EVs have the potential to destroy billions of euros in revenue for the industry,” warns Christian Dahlheim, head of VW's financial services.



Distrust about second-hand EV batteries

According to Bloomberg, the automotive industry faces an enormous challenge in dealing with large numbers of used EVs. In addition to all the above developments, consumer distrust about the condition of the battery also plays a role.

Most manufacturers have an eight-year warranty period, but what happens after that? If the battery pack breaks down, a second-hand EV will lose at least 30 percent of its total value in one fell swoop.

Private lease second-hand EV soon dirt cheap?

In addition to causing much misery for the industry, the uncertainty surrounding battery technology could also benefit future EV drivers. It could convince more consumers to lease instead of buying.


Mark Schreurs, founder of the Dutch leasing company Mistergreen, recently confirmed to the ANWB that private lease prices for second-hand EVs could soon drop enormously. He mentioned an amount of 300 to 350 euros per month for a Tesla Model 3. And you don't have to worry about repair costs or poor residual value. For a private lease of a new Model 3 you can easily spend double that amount.

Private lease Tesla Model 3

The Tesla Model 3 is available in combination with private lease from €589.00 per month with a term of 72 months and 5,000 km per year. look at all the Tesla Model 3 private lease Prices.

This post was last modified on December 22, 2023 12:24 pm

Redaction

Dreamer is what I am, but unlike many, I struggle to make my dreams come true. I own, seo, admin and site editor. I am a father, married, Christian, Northeastern/Brazil and Libran. I love cars <3

Recent Posts

  • News

TEST: It is bizarre that so few Dutch people drive a Smart #1 - AutoReview.nl

It seems as if the Smart #1 does not exist, so rarely do you see… Read More

5 hours ago
  • Modification

Continuous evolution, KW Clubsport competitive shock absorbers born for dedicated tracks

Text and pictures/Tong Bingfeng Xie Li/KW Taiwan Branch – Dekai Automobile (04) 2473-2575 Vehicle/Yantai professional… Read More

7 hours ago
  • News

TOYOTA launches the first qualified camper van, the new HIACE camper van, priced from 1.489 million yuan

Since its introduction in 2019, TOYOTA HIACE has been deeply favored by Taiwanese consumers for… Read More

10 hours ago
  • News

A new starting point for hardcore adventure Ineos Grenadier Taipei flagship display and service center opens

From left: Ineos Automotive Head Of APAC – Justin Hocevar, Yongsan International General Manager Mr.… Read More

12 hours ago
  • News

Different BMW 5 Series Touring

●The sixth-generation model of the 5 series has a more stylish taillight set than a… Read More

13 hours ago

We use cookies to ensure better usability on our site.

Read More