A lot of people are buying used EVs

Summary

Marketplace Morning Report: "A Lot of People Are Buying Used EVs"

Release Date: April 22, 2025

Hosted by David Brancaccio, this episode of the Marketplace Morning Report delves into the rising trend of used electric vehicle (EV) purchases, examines the challenges faced by dealerships, explores advancements in EV battery technology, and highlights innovative programs in California’s public schools aimed at addressing enrollment and funding issues.

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1. Tesla’s Financial Struggles and Market Position

David Brancaccio opens the episode by discussing Tesla’s upcoming report on sales and profits for the first quarter of 2025. Despite Tesla’s prominence in the EV market, the company’s stock has plummeted by 44% year-to-date. Brancaccio attributes this decline to concerns over CEO Elon Musk’s involvement with the Trump administration and the increasing competition in the EV sector.

"Tesla stock is down 44% year so far. So the prognosis for today is not good." [00:01]

2. Surge in Used EV Sales

Contrary to the challenges faced by new EV sales, the used EV market is experiencing significant growth. Sales of used electric vehicles have surged by 39% over the past year, according to Cox Automotive Marketplaces. This uptick is driving both interest and competition among used EV dealerships.

3. Inside Greenwave Electric Vehicles

Jesse Lohr of Greenwave Electric Vehicles in Northampton, New Hampshire, provides an on-the-ground perspective of the used EV market. His dealership primarily offers vehicles priced under $40,000, aiming to make EVs more accessible to a broader range of customers.

"Most of the vehicles at his dealership, Greenwave Electric Vehicles in Northampton, New Hampshire are under $40,000 and many are a good bit less." [00:40]

Mark Lore adds that the dealership’s inventory mainly consists of affordable models like Kia Niros, Tesla Model 3s, and Chevy Bolts, all priced under $25,000.

"You'll notice a lot of Kia Niro's, Tesla Model 3s, Chevy Bolts, more Chevy Bolts." [00:53]

4. Financial Challenges for Dealerships

Maintaining a diverse inventory of used EVs is financially taxing due to the high-interest rates on lines of credit used to purchase vehicles. Each car on the lot incurs daily costs, making rapid turnover essential for profitability.

"These cars eat hay at a rate of anywhere between 8 and $12 per day." [01:21]

5. Impact of Federal Tax Credits

The used EV market saw a significant boost in 2023, partly due to a federal tax credit for used EVs that buyers could receive upfront. However, this surge was temporary, peaking around the 2020 election, when many rushed to purchase EVs before the tax credit expired. Although the tax credit remains, recent weeks have seen a stabilization in sales.

"We all of a sudden got really busy with so many people saying, I want to get my EV before the tax credit goes away." [01:45]

6. Tariffs and Rising EV Prices

Concerns about potential tariffs have led to increased prices for both new and used EVs. These tariffs are already affecting wholesale prices, which are expected to trickle down to consumers at the retail level, posing additional challenges for dealerships and buyers alike.

"We've definitely heard from people that they're afraid of tariffs increasing the prices on new as well as used vehicles." [02:07]

7. Shifts in Inventory Strategy Due to Elon Musk’s Political Role

Jesse Lohr explains that while Tesla remains a significant part of his dealership’s inventory, the political activities of Elon Musk have influenced consumer demand. Following Musk’s prominent role in the Trump administration, the dealership experienced a surge in inquiries and consequently halted purchasing Teslas at auctions to manage inventory effectively.

"As of January, we stopped buying all Teslas at the auction because then we started getting, you know, three to five calls a day of people saying, how much will you give me for my 2021 Tesla?" [02:42]

Despite these challenges, some Teslas have been resold successfully, underscoring the brand’s continued appeal despite broader market difficulties.

8. Consumer Preferences and Charging Infrastructure

Dmitry Dragilev, a customer of Greenwave Electric Vehicles, shares his preference for Tesla primarily due to the brand’s extensive and reliable charging network rather than any allegiance to Elon Musk.

"The only reason I got the Tesla is because they have the network for the chargers." [03:16]

This highlights the importance of infrastructure in consumer decision-making when it comes to EV purchases.

9. Advancements in EV Battery Technology

Shifting focus globally, the episode highlights CATL of China, the world's largest EV battery manufacturer. CATL is advancing sodium-ion battery technology, which promises several benefits over traditional lithium-ion batteries:

• Cost-Effectiveness: Sodium is more abundant and cheaper than lithium.
• Performance: Sodium-ion batteries perform better in cold climates.
• Charging Efficiency: Capable of delivering 300 miles of range with a five-minute charge.

These advancements could potentially lower the cost of EVs and make them more accessible to a wider audience.

10. Innovative Programs in California’s Public Schools

In a segment addressing educational and economic challenges, the episode covers a unique initiative by the Placentia-Yorba Linda Unified School District in Orange County, California. Facing declining enrollment and budget constraints, Superintendent Alex Chernis developed the Universal Sports Institute—a high-tech gym that offers state-of-the-art training equipment and data-driven athletic programs to attract students and secure additional funding.

"Like many districts in California, we've been struggling with enrollment." [05:44]

The program includes features such as:

• High-Tech Gym Facilities: Equipped with machines capable of performing hundreds of exercises and pushing data to the cloud for performance metrics.

  "All that data gets pushed up into the cloud so we can measure metrics for each kid." [04:53]

• Recovery Centers: Plush recliners with red light therapy and compression boots for athlete recovery.

  "It's got plush recliners equipped with red light therapy." [04:59]

• Holistic Training Programs: Combining professional training with educational curricula for homeschooled students.

The initiative aims to double its enrollment in the coming year to enhance sustainability and secure more state funding. However, it faces scrutiny from some school board members concerned about the program’s cost amidst a multimillion-dollar budget gap.

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Conclusion

David Brancaccio concludes the episode by encapsulating the dynamic shifts within the used EV market, the impact of political and economic factors on consumer behavior, and innovative responses by businesses and educational institutions to current challenges. The episode provides a comprehensive overview of how the EV landscape is evolving amidst broader economic and technological changes.

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Note: The promotional segment for the "Financially Inclined" podcast was omitted in accordance with the summary guidelines.

Transcript

[David Brancaccio]

A lot of people are buying electric cars used. I'm David Brancaccio in Los Angeles. Later today, electric vehicle maker Tesla is set to report sales and profits for the first three months of this year. Tesla stock is down 44% year so far. So the prognosis for today is not good. Part of this is concern about CEO Elon Musk's role in the Trump administration, and part of it is Tesla's competitors running past them. But the EV market is also used. In fact, sales of used EVs are up 39% in a year, according to Cox Automotive Marketplaces. Henry Epspin. Spending time at an EV dealership in.

[Jesse Lohr]

New England, Jesse Lohr tries to keep his prices relatively low. Most of the vehicles at his dealership, Greenwave Electric vehicles in Northampton, New Hampshire are under $40,000 and many are a good bit less.

[Mark Lore]

So now we get to this section and this is almost entirely under twenty five thousand dollar cars, right? You'll notice a lot of Kia Niro's, Tesla Model 3s, Chevy Bolts, more Chevy Bolts.

[Jesse Lohr]

Like a lot of car dealers, he doesn't have the cash to buy all of this inventory. He uses lines of credit with local banks, and their relatively high interest rates mean every one of the cars on his lot cost him money every day.

[Mark Lore]

Just sitting on our lot today, we say these cars eat hay at a rate of anywhere between 8 and $12 per day.

[Jesse Lohr]

So it's in Lore's interest to turn over his inventory pretty quickly. After a rough first year. In 2023, sales picked up thanks in part to a federal tax credit for used EVs that a buyer can receive up front. Then last October, he says business slowed way down.

[Mark Lore]

And then on November 6, the day after the election, it was almost like somebody had flipped a switch. We all of a sudden got really busy with so many people saying, I want to get my EV before the tax credit goes away.

[Jesse Lohr]

That only lasted through Inauguration Day. Even though the tax credit is still available. In the last few weeks, business has picked back up again.

[Mark Lore]

We have definitely heard from people that they're afraid of tariffs increasing the prices on new as well as used vehicles. And they're not wrong. It is already happening at the wholesale level, which will come down to the retail level as well.

[Jesse Lohr]

With the exception of one brand Tesla, Jesse Lohr's dad, Mark, buys much of the dealership's inventory at online wholesale auctions.

[Dmitry Dragilev]

Right now, I have to tell you that when I, if I look at 100 cars today, 65 to 70 of them are Teslas.

[Jesse Lohr]

He says the flood started after CEO Elon Musk became a major force in the Trump administration.

[Dmitry Dragilev]

As of January, we stopped buying all Teslas at the auction because then we started getting, you know, three to five calls a day of people saying, how much will you give me for my 2021 Tesla?

[Jesse Lohr]

They've bought some of them at low prices, Mark Lore says, and they've managed to resell a few. Dmitry Dragilev bought a used Model Y from Greenwave a year ago.

[Dmitry Dragilev]

The only reason I got the Tesla is because they have the network for the chargers, he says.

[Jesse Lohr]

His choice has nothing to do with Elon Musk.

[Dmitry Dragilev]

I just like the car. I don't really like, you know, I'm like, ugh.

[Jesse Lohr]

But if he changes his mind, there is a used EV dealership nearby that might buy it back from him. In Northampton, New Hampshire, I'm Henry Epp.

[David Brancaccio]

For Marketplace, the biggest maker of EV batteries in the world. Catl of China is talking about its new sodium ion tech. Cheaper works better in cold 300 miles on a five minute charge are among the claims. Also, sodium is not rare like the usual lithium. With Americans having fewer kids, there are fewer going to school hitting budgets of public schools in states that pay schools by the kid. In Orange County, California, a public school system is responding by doing something colleges do to attract customers. From our public media sibling, Las Jill Repligel reports.

[Jill Replogel]

A standard feature of California schools is the mpr, or multipurpose room, which is about as drab as it sounds, a big open space where you can stage a play or a science fair. But the MPR on this campus in Yorba Linda was converted last fall into a high tech gym. On one side, coaches work on wrestling moves with three young kids. On the other, brand new training equipment lines the walls.

[Christian Holliday]

This machine alone does hundreds of exercises.

[Jill Replogel]

Christian Holliday is a supervisor at the institute.

[Christian Holliday]

All that data gets pushed up into the cloud so we can measure metrics for each kid.

[Jill Replogel]

Next door is the recovery center. It's got plush recliners equipped with red light therapy. In one of the chairs, a high school wrestler kicks back with compression boots on his legs. The students in this program are homeschooled and then come here to the Universal Sports Institute to work with professional trainers. Some parents say the institute gives them more family time because their sports crazy kids aren't training during dinner. Heather Sargent has two boys enrolled.

[Heather Sargent]

As a former athlete, myself would have absolutely died for an opportunity like this.

[Jill Replogel]

To be clear, this is a free public school program, part of the Placentia Yorba Linda Unified School District Superintendent Alex Chernis developed the program.

[Alex Chernis]

Like many districts in California, we've been struggling with enrollment.

[Jill Replogel]

That could just be a demographic reality. But Chernis thinks at least some of those kids are going to private or charter schools.

[Alex Chernis]

So I got to thinking, well, maybe this is a way to keep our kids, but also maybe to attract kids.

[Jill Replogel]

From all over, including from outside the district. More students would mean more state funding at a time when districts are being forced into tough choices about closing schools and cutting staff. Currently, there are only about 100 kids enrolled at the Sports Institute. District staff estimate the program will be about a million dollars in the whole this year, and some school board members aren't sure this elite program is a good investment. The board is now planning cuts across the district to close its multimillion dol budget gap. The Sports Institute has already started to trim its budget. It hopes to double its student body next year, which could make the whole venture more sustainable. In your Belinda California I'm Jill Replogel.

[David Brancaccio]

For Marketplace, and you're listening to the Marketplace Morning Report from APM American Public Media.

[Janelli Espinal]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Janelli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined wherever you get your podcasts.