With the effects of the microchip shortage still affecting the car market, used
EVsare becoming more popular than before. Despite the growing rates of inflation making used vehicle prices soar, car buyers are still willing to invest in a second-hand EV.
Even if many of us may end up overpaying for our vehicles for the foreseeable future, it’s a promising sign that drivers are investing in renewable forms of personal transportation.
It’s also a good idea to invest some time into a more affordable
car insuranceplan; find out if Jerry could help you save on your current coverage.
Used EVs are pricier now, thanks to microchip shortages
WIREDexplains how one man bought a $40,000
Tesla Model Yin 2021. After a few months, he entered his Tesla’s exact make and model onto a used car retailer’s site, just out of curiosity. He was surprised to discover that his car could sell for close to $50,000, despite him only paying $40,000 for it. So, he decided to sell it, and was able to pocket the extra $10,000.
This is surprising, considering he had about 20,000 miles on the car, but used vehicle prices, especially for EVs, which are almost always more expensive, have increased by close to 40% since March of 2021. Thanks to microchip shortages, which have affected carmakers’ ability to crank out vehicles, EVs have skyrocketed in price. With gas prices surging as well, they’re quickly becoming a preferred alternative to gas-powered cars.
The current state of the used car market
As of 2022, one-third of used EVs on the market are three years old or younger, and are selling for nearly as much as they were worth new.
They’re also incredibly popular. According to WIRED,
Carvanareports that 90% of its hybrid and electric vehicle models are in the process of being purchased. This means that interested buyers will have an extremely hard time trying to get their hands on an EV.
This is partially due to COVID-19’s effect on manufacturing plants’ ability to produce vehicles, which meant that microchips weren’t being purchased by carmakers during the hiatus.
But companies also didn’t think to keep purchasing them in excess for when the manufacturing plants kicked back into gear, meaning that most car companies were left with low inventory, which hurt their sales. But most importantly, consumers are left with high price tags that make it hard to find a vehicle they can afford.
New gas-powered car prices are going down—but not EVs
Kelley Blue Bookreports that new car prices have fallen by .3% this year, but new EVs have actually increased in price by 1.8%. This is frustrating, considering that the used vehicle market indicates more people would like to switch to an EV, but can’t really afford it.
For the time being, second-hand EVs might be the way most people find themselves trading their gas-powered cars for an eco-friendly set of wheels.
EV prices might be high—but Jerry can help you keep your insurance rates low
Even though you may not be able to avoid shelling out some extra cash for your new or used EV,
Jerrycan help you lock down an affordable rate on your car insurance. And if you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and can even help cancel your old policy! And if you have any questions along the way, just text one of our agents through the app. They will always be there to assist you.