The Imminent Collapse Of The Electric Car Market!
Hey everyone it’s Ben Hardy here and in today’s going to be talking about the electric vehicle Market because it has changed a massive amount over the course of the last month before we get into this video though as always if you want to save time and money the next time you
Purchase a car link to my carbine guide in the description down below let’s get into it so let’s talk about the electric vehicle Market because this is absolutely fascinating whether or not you own an EV or in the market for an EV it’s still very interesting information
So 1.2 million new EVS were sold in the 2023 sales year that’s a record that is the first time that Eevees have ever seen over a million units sold in the US market Tesla was still 55% of that so they still dominate the EV Market even though they’ve lost market share they’re
Still a very big part of the overall market now the next thing that is fascinating is the market share so that’s a 7.6% market share so that is an increase for the EV Market market and the last thing is going to be who is buying electric vehicles so about 60% uh
To 75% depending on the source that you look at which I think is weird that there’s such a big discrepancy between the sources um have an annual income of over $100,000 so most EV buyers with new EVS make over $100,000 per year and the other thing is that the EV Market is
Predominantly a male Market there’s not as many female buyers compared to male buyers uh One Source states that uh and this comes from inside advanc transportation.com they state that 75% of electric vehicle buyers are male which I think is pretty or actually they they say middle-aged men that’s funny that that that is
Interesting um but anyways the Eevee Market on the surface looks like a market that is going through a huge growth phase but the next stat is not necessarily the best with the EV market and that comes from Herz so they just sold about 20,000 EVS out of their Fleet
I think that was about a 50% uh share of their electric vehicle Fleet and they have stated and other rental car companies have stated that they are pulling back on EVS because they are too expensive to maintain and the damages that happen to them happen more often
Are and are more expensive to repair than their traditional ice counterparts which is obviously not what you want as a rental car company right you want to make sure that you buy the cars for the least amount of money rent them out for the most amount of money and then you
Know have the least amount of running costs so the EES haven’t been as affordable as they expected now everything that I just went over except for the Herz thing was a 2023 thing 2024 has already started and EV sales haven’t fallen off of a cliff but they are not
Increasing so now I’m going to pull out a stat from my own channel I did a survey now I do want to mention that I find this survey to be very compelling because for a survey to be considered legit you have to have a th000 people participate right that’s most surveys in
My survey I had over 11,000 people participate now this survey right it it didn’t have anything that would make people not answer honestly I asked a simple question what powertrain are you most interested in with your next vehicle purchase 177% of people said diesel 53% said gas 16% said hybrid 7%
Said plug-in hybrid and 7% said fully electric now remember the electric vehicle market share right now is 7.6% 7% of people in the survey said that they would be interested in a full electric vehicle and this is where I will kind of dive a little bit into the
Anecdotal side of things I have seen a huge pullback with fully electric vehicles in terms of the interest what it looks like now is there are more people that own an electric vehicle than there are people that are interested in buying electric vehicle for most of the
Time it was there was slightly more people interested than people that owned and now it seems like it’s flipped and that is happening for a number of reasons first off I mean you look at all the blackouts happening in California for example because they infrastructure cannot handle charging fully electric
Vehicles I I thought it was so funny I remember that week where they released the statement saying that we want to be fully electric by 2035 right no more ice powered cars sold by 2035 inali Cali and then the next week they asked people to basically pull back on their power usage
Because the grid couldn’t support charging all of these electric vehicles right it’s one of the funniest things ever and so between you know these blackouts in certain areas in the US because the infrastructure cannot handle all of these electric vehicles and the next thing which is resale value it has
Pushed a lot of people out of the market resale value with electric cars is absolutely abysmal it is the worst in the car market there is nothing that depreciates faster than an electric vehicle even Range Rovers for goodness sakes hold their value better than fully electric vehicles what I am seeing you
Know and again there are some cars that kind of buck this trend a little bit but for the most part with most electric vehicles you can expect in the first year to see depreciation of about half of the car’s value half not you know 10%
Once you drive off the lot 50% and that was before the used car market was flooded with all of these cars from Herz and from Enterprise that they getting rid of their uh from their electric vehicle fleets and so that surely will tank the values even more and this is
Anecdotal but I can tell you as soon as that was announced I talked to some of the dealers that I filmed for and what they told me is that they will not take an electric vehicle in as a tradein because of that situation because again the electric vehicle values have already
Been extremely volatile I mean over the last year with electric vehicle prices on the new side declining by 20% pushing down the use car prices a lot of dealers got burned on that and so now with dealers seeing all of these rental EVS going on the market they don’t want to
Get burned again so they either won’t buy them or they will only buy them if they are buying them for significantly under Market just to give you an idea of the buy bids that you will see on electric vehicles moving forward especially on Teslas it will be you know
A normal car you know you’ve got retail value you’ve got trading value most dealers will typically offer a little bit below tradeing value because you know they want to try to make some money on the car well with electric vehicles in today’s market they will not be offering anywhere near trade and value
What dealers have told me is that you know just for things to make sense based on the depreciation they expect to see with electric vehicles they plan on offering thousands and thousands below tradeing value I mean you’re talking 10 20% below tradeing value like not even you know salvage title auction value on
Some of these electric vehicles again it’s going to depend on the model the year the mileage all of that but this is not good news for the electric vehicle Market because this means that people that already own cars are going to see even bigger depreciation I mean I hear
Stories all the time of people that bought Teslas prior to the price cuts and now you know they’re driving a car that they paid $670,000 for and it’s only worth 20 something ,000 now if these people were millionaire they would probably be able to afford that but
Again you look at the average EV owner right they’re making over $100,000 that sounds like a lot of money but I should have looked up this statistic before I do this video but I remember seeing a statistic that you know somewhere around like 40 to 60% of people making over
$100,000 live paycheck to paycheck so these people don’t have the money to be able to offset the depreciation they have experienced they can’t afford you know the 50% 70% depreciation in some cases on these electric vehicles and so you can understand why these people are not going to want to go
Electric with their next purchase because again the infrastructure not just the charging infrastructure now we’re just talking about our electric grid the electric grid cannot support electric vehicles at least that’s what it looks like right when you see the rolling blackouts and you see them I
Mean I saw something the other day that was like hey turn down your thermostats from 72 down to 65 so that you can conserve power so there can be more power for people to power their electric cars I mean just ridiculous stuff right and so with all of that people are going
Back into traditional you know internal combustion engine cars hybrid cars plugin hybrids I you know I think those kind of going with electric vehicles because of the plugin hybrid aspect uh side of things and so it’s a mess and that’s why this video was kind of a mess
Because the electric vehicle Market is a mess so do whatever you want right if you’re watching this video chances are that you’re an adult and so so you can make your own decisions but if it were my money I would not touch any electric vehicle new or used I just don’t think
It makes any sense because yeah the used ones might start to look enticing because of the depreciation but every single time that you know the market has thought that the depreciation has ended something else comes out of the Woodworks and causes them to depreciate more right last year it was uh just
Before last year sorry it was the used car market went down and they’re like okay well now this is it electric cars aren’t going to go down in value anymore and then price cuts from Tesla and other automakers came through and then the depreciation increased and everyone’s
Like okay that’s it now electric cars the used Market it’s settled and now we have all these used electric rental cars flooding the market and so this it it’s just like one thing after another and so who knows what the next thing is going to be if there is going to be another
Next thing but like I just wouldn’t chance my finances with that and again with the rolling blackouts and all that kind of stuff that are starting to happen in different places in the nation I I also wouldn’t chance my ability to travel with that as well I just I just
Don’t think it’s worth it let me know what you guys think about this electric vehicle situation but I think that this is the beginning of the end for the you know widescale adoption of electric cars I think this is going to push things back a very long time and I think we’re
Going to see automakers dive more into the smaller displacement turbocharged engines and then you know Hybrid Power Trains I think hybrid power trains are going to become really big the market speaks for itself and people will buy what people are going to buy you know the government and everything they can
Release all the incentives they want but ultimately the market will decide what the market decides I’ll see you
Today I talk about the decline in interest for electric vehicles in the USA market!
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