Viktor MusilExperience the burgeoning growth of the used electric vehicles (EV) market, driven by falling prices, increased availability, and enticing incentives, making EVs accessible to a wider consumer base. Discover insights from industry experts like JR Anderson and Scott Case, highlighting the significance of the used EV market, particularly for lower-income households. With predictions of a 40% increase in sales this year, surpassing 500,000 units in the US alone, popular models like the Tesla Model 3 and Chevrolet Bolts are flooding the market. Benefit from federal tax credits of up to $14,000 or 30% back, making used EVs more affordable. Explore state-level incentives offered in Connecticut, Illinois, Oregon, and beyond, aimed at further reducing costs for consumers. Ensure equity in access to clean transportation by tailoring incentives based on income levels and regional pollution. Join the conversation on funding sustainability to sustain these vital programs and ensure accessibility to all.
The used electronic vehicle market is getting the boost it needs to grow thanks to falling prices, increased availability, and incentives, which are introducing the vehicles to a wider range of consumers.
The market for used electric vehicles is expected to explode, mainly due to incentives, lower price points, and increased availability of vehicles.
JR Anderson, program manager at Forth, stated during a webinar on February 14 that this is the best way to get around in your day-to-day life.” The more vehicles that hit the used electric vehicle market, and the more information about how cheap they are to drive and maintain.”
Driving Growth: Incentives for EVs Propel Expansion of the Used Electric Vehicle Market
For families with lower incomes, expanding the used electric vehicle market could be a crucial entry point. According to Scott Case, panel moderator and CEO of Recurrent, which creates battery health reports for EV owners, about 62 % of lower-income households buy used cars. Only 17 % of low-income families buy new cars, he continued.
He continued,” In a lot of ways, you could say that the growth of the used EV market is even more significant than the rise of new ones”. Recurrent predicts that this year, up 40 % from last year and double that of 2022, more than 500,000 used battery-electric and plugin hybrids will be sold in the US.
Popular models are progressively being offered for sale on the used market, including the Tesla Model 3 and Model Y. ” Consequently, a lot more volume is entering this market,” Case said.
The average used Electric price, which is now around$ 27 000, is down from what it was in early 2021.
But, Case pointed out that the car is significantly different from how it was three to four years back because those cars typically had small battery ranges. The used cars on the market today include models with a 200-mile range, such as the Tesla Model 3s and Chevrolet Bolts.
Incentives are another element that makes the used EV market more alluring. Federal tax credits can be used to give buyers up to$ 14, 000 or 30 % back. The car must be at least two years old and cannot cost more than$ 25,000. Additionally, the car must be bought from a licensed dealer. The Inflation Reduction Act included the used EV tax credit. 30 % of used EVs are priced below the$ 20,000 list price.
Equity in EV Adoption: Lower-Income Households Benefit from the Used Electric Vehicle Market
According to Katherine Garcia, director of Clean Transportation for All at the Sierra Club, states like Connecticut, Illinois, and Oregon offer state-level incentives for buying a used EV that can be added on top of the provincial incentive.
In some of her comments on the panel, Garcia stated that” the savings for low-income households are significantly higher than for high net-worth individuals.” Therefore, from an equity standpoint, it’s crucial to be able to lower the cost of electric vehicles in order to lessen the great transportation and energy costs that low-income households experience.
States should base their purchase incentives for used EVs on variables like household income and vehicle cost, Garcia said, adding that they could even be linked to regions with the highest pollution levels.
The most crucial thing, though, is to ensure that the program is funded appropriately.
She continued, noting that states often close the application process because the program has run out of funding.” One of the things I get upset about is when I hear a state has to pause accepting applications,” she said.
