Emerging Businesses Tap into the Growing Market for Affordable Used EVs

Emma Rodriguez13 Aug, 2024Technology

Businesses specializing in the sale of used electric vehicles (EVs) are growing, taking advantage of declining prices in the market. Several factors have contributed to these lower costs. The first factor is the considerable drop in Tesla?s used car prices since mid-2022, largely driven by Tesla?s decision to cut prices on new vehicles and Hertz?s sale of a significant number of Teslas at reduced rates. Additionally, the Inflation Reduction Act introduced a $4,000 tax credit for qualifying used EVs. This credit can be applied directly to the down payment, which is particularly advantageous for lower-income buyers who might otherwise miss out due to their federal tax obligations. Convincing traditional auto dealerships and lenders to embrace the sale and financing of used EVs is a major challenge for these new businesses. Nonetheless, forward-thinking dealerships and financial institutions are rising to the occasion.