In a recent video by Sam Evans, also known as the Electric Viking, startling news was revealed: used electric cars are now cheaper than their internal combustion engine (ICE) counterparts. Let’s dive into Sam’s insights and see what he had to say about this significant development in the automotive market.
The Changing Landscape of Used Car Prices
Sam Evans kicks off by highlighting a fascinating shift in the used car market. According to a recent study involving 2.2 million cars, the average value of used electric vehicles (EVs) has dropped nearly 30%, making them 8.5% cheaper than used gas cars. This trend is partly due to rapid advancements in EV technology and increased production capabilities, which have driven down prices.
The Impact of Technological Advancements
Sam draws an interesting parallel between the evolution of electric cars and smartphones, particularly iPhones. While improvements between early iPhone models were significant, recent updates have been more incremental. In contrast, EV technology continues to advance rapidly, with substantial investments driving innovation. As manufacturers produce more EVs, economies of scale kick in, reducing costs further. I think this technological leap is a massive win for consumers, offering them more affordable and advanced vehicles.
The Positive Spin on Falling Prices
Contrary to some media portrayals, Sam views the decline in EV prices as a positive development for consumers. He argues that lower prices make EVs more accessible, benefiting the environment and reducing reliance on fossil fuels. Sam cites the example of the Tesla Model Y, which has seen its price drop significantly despite inflation. I agree that the media’s negative spin on this trend is unfounded; the reduction in EV prices is a boon for potential buyers.
The Current Market for Used EVs
Sam’s research into used car sites in the U.S. and Australia revealed some eye-opening deals. For instance, the BYD E3 with a 70 kWh lithium phosphate blade battery is available for as low as $19,000 in Australia. These affordable prices highlight the growing accessibility of used EVs, making them a viable option for a wider range of consumers. I like how this trend democratizes access to advanced automotive technology.
The Statistical Breakdown
The study referenced by Sam examined 2.2 million vehicles aged one to five years old, sold between May 2023 and May 2024. It found that the average price of a used EV was $28,750, compared to $31,324 for a used gas car. This significant price differential challenges the notion that EVs are prohibitively expensive. I think this data could encourage more consumers to consider EVs as a practical and economical choice.
Misconceptions and Media Narratives
Sam addresses a common misconception propagated by some media outlets: that the drop in used EV prices negatively impacts owners. He counters this by emphasizing that most EV buyers received incentives, such as a $7,500 discount, which offsets any perceived loss in resale value. Additionally, the lower running costs of EVs compared to gas cars further enhance their financial appeal. I completely agree that this perspective is often overlooked in mainstream narratives.
The Ease and Cost of Owning an EV
Sam also highlights the convenience and cost-effectiveness of owning an EV. Charging an EV at home is as simple as plugging in a phone, and the overall cost of electricity is significantly lower than gasoline. He recounts a personal experience of his son’s amazement at the high cost of filling up a gas car, contrasting it with the lower expenses of charging an EV. I think this everyday convenience could be a strong selling point for EVs.
The Broader Implications
Sam discusses the broader implications of falling EV prices, suggesting that it signals a virtuous cycle: as more people buy EVs, prices continue to drop, technology improves, and production scales up. This cycle benefits consumers and accelerates the shift towards sustainable transportation. I believe this dynamic is crucial for the widespread adoption of EVs and the reduction of carbon emissions.
“Supply and Demand Curve”
People in the comments had a lot to say: “The EV owner that looses 20k after a year of ownership doesn’t see it as a positive no matter what you say, no one wants to be saddled with a rapidly depreciating asset. ICE cars are a known quantity, the EV market is still in its infancy and a year is a long time for EV technology. If Trump gets in, the whole US car market will be in turmoil as the trade war heats up.“
Another commenter added: “Supply and demand curve explains everything.”
One person simply concluded: “Don’t buy, lease.”
A Promising Trend
In conclusion, Sam Evans’ insights into the used EV market reveal a promising trend: electric cars are becoming more affordable and accessible, outpacing their gas-powered counterparts. Despite some media skepticism, the reduction in EV prices represents a positive shift for consumers and the environment. As EV technology continues to advance, we anticipate even greater benefits for buyers, reinforcing the appeal of electric vehicles in the modern automotive landscape.
Impact on the Overall Doption of EVs
What are your thoughts? How do you think the decreasing cost of used electric vehicles will impact the overall adoption of electric cars in the next decade? What are the potential environmental and economic benefits of more people switching to electric vehicles as they become more affordable? What challenges do you foresee in the widespread adoption of electric vehicles, despite their decreasing prices?
Explore the full insights by viewing the video on The Electric Viking’s YouTube channel here.
