The US car market, which has not yet fully recovered from the pandemic, comes across a new shortage. The demand for electric cars has increased in the wake of rising gasoline prices.
Those who wish to purchase a new electric car cannot complete the transaction due to the lack of vehicles for sale and the long delivery time of the order. In this regard, motorists go to the used car market, where they face increased demand and higher prices. The industry insiders from the Indy Auto Man used car dealership explain what to expect from the used car market and what vehicle to buy if it is needed already today.
“The rise in popularity of electric cars is not unusual,” notes Victor Figlin, the GM at Indy Auto Man. “When gasoline becomes more expensive, people start looking for more efficient vehicles, and their prices also start to rise as supply shrinks. When fuel prices fall, we’ll see the opposite effect. We cannot predict how gasoline rates will behave soon, but given the current rise in the EVs value, it is better to think twice about whether it is worth switching to electric transport only following the massive trend. Perhaps you should not give up on gasoline cars, but consider choosing the most fuel-efficient vehicle.”
At Indy Auto Man, Indianapolis, customers have always had a good variety of 300+ used cars from different brands, including multiple used Tesla models in stock. However, since February, most electric and hybrid vehicles have been sold out. The demand broke all records, taking notice of the dealership policy not to artificially inflate the prices and keep them at the average market level. “We still strive to keep the assortment, and we have new arrivals each week. However, our car lot serves not only Indianapolis but also Greenwood, Plainfield, Zionsville, Carmel, Fishers, Greenfield, and the neighboring cities in Indiana. So sometimes, we see that the assortment of EVs is not as rich as we used to. We recommend our customers to contact us directly on any model from our website to make sure it is still available.”
The price factor may become a problem for those who want to get an electric car – on average, EVs have always been more expensive than cars with gasoline and diesel engines, and now the gap is becoming wider. Moreover, the cost of insurance and repair of such vehicles can offset the fuel savings.
Statisticians also note that the current crisis has most affected the segment of used hybrid and all-electric cars. A used hybrid Hyundai Sonata as of February is estimated at $24,913. The increase is a whopping $9,457, or 61.2% in comparison to the same month last year. Among the other leaders of the price rise are the electric Nissan Leaf (+54.3%), Chevrolet Spark (+54.5%), and, suddenly, the G-class from Mercedes, which now costs an average of 216 thousand dollars (+52.1 %).
Meanwhile, the holiday season is approaching, and more people begin to search for a vehicle that would become a reliable and economical summer traveling companion. Many experts agree that buying an electric car only to save up may not pay off in the current situation. It is better to opt for a fuel-efficient used car, as long as there is still a good selection of models.