Get ready, you may be seeing more electric vehicles in the install bay sooner than you think. EVs aren’t just for wealthy car buyers any more. Consumers are turning to used EVs as they search for cheaper means of transportation due to inflation and higher gas prices, according to Cox Automotive and other reports.
Used EV sales have been gaining steadily this year. Sales in May were up 25 percent over last year, hitting 43,000 units, said Cox Automotive.
Used EVs now cost about $2,200 more than a similar gas-powered model, at an average list price of $37,000.
New EV sales have been rising over the past few months as well, but they are still down 22 percent year over year. The average new EV price is $54,500. But affordable EVs are becoming widespread. Nissan’s new Leaf is priced at $31.5K, Subaru and Toyota now offer the Uncharted and C-HR, respectively, each starting at $35,000. Kia will soon release a $35K model and the Chevy Bolt has returned at $29K.
Ford is readying a $30K pickup for next year.
12V Opportunity
To reach these new lower prices, car makers are removing features and the infotainment system is not immune. Tesla last year cut back on the number of speakers in its lower cost Models 3 and Y and nixed the rear infotainment screen.
Dodge CEO Matt McAlear, in April this year, told The Drive that the industry must rethink how bare bones a base model should be. “…. Do you need a radio? Do you just have speakers that you Bluetooth to?” he asked.
Then there is the replacement opportunity for the aftermarket down the line in EVs. Several reports say the average EV infotainment system lasts between 8 and 15 years. Eight years ago, there were about 400-500,000 all electric vehicles on the road in the US, according to USA Facts. By the end of 2025 the figure was almost 5 million.
Eventually, these vehicles will require sound system replacements.
There’s More…
New EV leasing is also becoming more popular among buyers, again drawing more cost conscious consumers to the EV category. Kia is leading that charge. The 2026 Kia Niro EV Wind is the only electric vehicle on CarFax’s list of the ten cheapest new vehicle lease programs in the US. The program runs $239 dollars per month for 24 months with $3,999 dollars due at signing.
Is this Temporary?
You may ask, is this shift to EVs a temporary blip due to the closing of the Strait of Hormuz, which is in the process of reopening as of this writing.
Here are some things to consider. Some news sources say gas prices won’t return to pre-war pricing of close to $3/gallon until 2027.
General Motors North America President Duncan Aldred addressed the overall issue of affordability and higher gas prices at a conference this month. He said consumers are shying away from trucks and larger SUVs. He was uncertain if this is a temporary issue or a permanent shift. According to Automotive News, he noted, “I would stress it’s a little bit erratic, so we’ll have to see if a trend really develops…There’s definitely more awareness of affordability. We’ve seen what’s happened with inflation and we’ve seen what’s happening at the pumps.”
Either way, the shift to lower priced EVs is real as the industry seeks to compete with China, and consumers may stick with gas alternatives for many months.
So the question is, if the EVs are coming, are you ready?
