Do We need a Second-Hand Electric Car Market?

Do we need a second-hand electric car market?
Do we need a second-hand electric car market?

As technology continues to improve, journey capacity concerns decrease and demand for electric vehicles across the world continues to grow, bit by bit the electric car market is coming together There is no doubt that electric vehicles have never been as popular as they are today but for many people there is still one important piece of the jigsaw missing, "does the electric car industry need a second-hand market before it will ever go truly mass-market?"

Why is a second-hand market so important?

At this moment in time the cost of the average electric vehicle is perhaps just out of the reach of the general public. There are some cars which are "affordable" but for many people the issue is that if they would like to upgrade to a different vehicle in years to come, are there buyers for second-hand electric vehicles?

The opportunity to cash in your current electric vehicle, receive at least some sale proceeds, and use these to purchase a different vehicle is vital for many people. The alternatives are to keep your existing vehicle until you have "run it into the ground", or lose money when buying a new vehicle.

Quote from ElectricForum.com: "We have new members joining the forum everyday and it would be interesting to get a snapshot of what vehicles you are currently driving and/or considering buying in the future. There are so many different options available today that it is sometimes difficult to know where to start. If we can highlight a couple of the more popular models on this thread, it may give members food for thought."

The signs are surprisingly good

While it would be wrong to suggest there is a liquid second-hand market in electric vehicles at this moment in time, progress is certainly being made. Only a few days ago there was news of second-hand sales of Tesla vehicles and bearing in mind the rest follow where Tesla leads, can we expect more progress towards a liquid second-hand EV car market in the future?

At this moment in time the inability to receive a "fair price" for a second-hand electric vehicle is putting many people. When you consider that many low quality petrol/diesel vehicles will at least attract some return in the second-hand market it is not unfair to expect the same for an electric vehicle. Historically the main issue has been the battery packs which are the most expensive element of any electric vehicle but enormous progress has been made with regards to this technology.

Part exchange electric vehicles

Once we see a more liquid electric vehicle second-hand market there will be more dealerships around the world willing to accept older electric vehicles in exchange for more modern versions. This in itself will be a major turning point for the electric vehicle market and ensure that any amount of second-hand EVs are readily available to the general public. At this moment in time it is also difficult to value a second-hand electric vehicle because quite simply it relates directly to supply and demand. If there is limited demand this equates to limited sales proceeds.

Conclusion

While many people have yet to discuss the creation of a second-hand market in electric vehicles, it is a vital element of the industry going forward. The ability to at least recoup some of your initial investment in an electric vehicle before moving on to your next EV helps to keep the wheels of the industry turning. Surprisingly there are signs of an increase in activity in second-hand vehicles and we can only hope that this continues.