The used electric vehicle market has miles to go before reaching critical mass, but sparks of growth in recent months may indicate the segment is gaining traction.
For one, there are three times as many used EVs on dealer lots as there were 18 months ago, according to Recurrent, an EV battery and range analytics company.
In its Used Electric Car Prices & Market Report for the first quarter, Recurrent determined there were 37,515 used EVs in dealer inventories in January. That’s up from …
Read more
Two experts from Experian Automotive discussed two important parts of the electric vehicle market for this episode of the Auto Remarketing Podcast recorded during NADA Show 2023 in Dallas.
Kirsten Von Busch discussed trends connected with EV shoppers, while Melinda Zabritski analyzed how those consumers are securing the financing needed for delivery.
To listen to the conversation, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes.
Here’s more evidence of the trickle-down used-car impact from Tesla’s price reduction last month:
The average price of a later-model used Tesla in the second half of January (after the price cut) was nearly …
Read more
Sales of electric vehicles (EVs) in the U.S. showed a sharp jump in sales, increasing by two-thirds in 2022, while the remaining portion of the auto market contracted.
According to a report in the Wall Street Journal, carmakers sold 807,180 fully electric vehicles in the U.S. this past year, equating to 5.8% of all vehicles sold, up from 3.2% a year earlier. This jump in EV sales sharply contrasts the 8% overall decline in total U.S. auto sales from the previous year.
Across the globe, EV sales are even more impressive, driving up the demand for these vehicles and spurring a bevy of activity from manufacturers racing to introduce more models. Here in the U.S., relaxed fuel economy targets, and weak charging infrastructures have stagnated demand, but there are signs that it will pick up at a torrid pace. New fuel economy regulations are being passed and the 2021 Infrastructure Investment and Jobs Act shows promise of a much stronger national charging infrastructure.
Super Bowl EV advertising
The story gets even more interesting at the beginning of 2023, when the Super Bowl is played on Sunday. Last year’s game saw a marked jump in the number of auto brands showcasing TV spots online and during the broadcast, featuring breathtaking vehicles that left viewers feeling the urge to finally rush out and purchase an EV.
This year’s big game is expected to showcase another round of EV excitement with new vehicles advertised and even broader, more well-rounded EV campaigns that reach across social, broadcast and web.
However, if the auto industry truly wants to push that 5.8% mark even higher in 2023, these advertising campaigns must go beyond just the promise of the vehicles and the technology itself. It’s time the industry provides more education of the broader EV experience — in driving, owning, maintaining, and especially, the sales process itself.
Why more people aren’t buying EVs
EV advertising messages must begin to educate and tap into the lifestyle wants and needs of drivers. Campaigns must begin to identify with people who aren’t just looking for the futuristic dream of what’s possible, but rather begin to answer questions on the process of “switching” over from a gas-powered vehicle.
We get it. The cars are really cool. They’re really quiet. They’re really good for the environment. And just having one in your driveway elevates your curb appeal – not to mention status among neighbors.
But the people who purchased the other 94.2% of non-EV cars and trucks in 2022 need more than just a cool looking car to get them to switch. They are now looking to be educated about what it’s like to walk into a dealership and purchase one — is the process different, how so? They want to know what it’s like to maintain an EV and take it in for service — what’s entailed with that and what’s different in the service process? And most of all, they want to know about the state of charging and the buildout of the charging infrastructure — how can advertising be used to persuade them that range anxiety is just a myth?
What’s more, dealers have a great opportunity to promote ad campaigns that showcase the sheer investments they’re making in outfitting their dealerships to cater to the needs of today’s EV driver.
AdTech will play a significant role
Dealers should also take advantage of the tools, technologies and resources available to them via Connected TV (CTV) – a platform that aligns well with an EV-centric audience. Dealers should be leveraging uniquely personalized ads with messaging targeted at specific households. Messaging with offers to buy an EV, trade in their existing vehicle to augment dealer inventory, or personalized and interactive CTV ads allowing a user to click their remote to set a sales appointment or get a trade-in quote are just a few examples. This same clickable interactivity could also give viewers access to payment calculators and real-time inventory on a dealer’s website, allowing them to get pre-qualified and matched with a vehicle while instantly negotiating payment terms…all from the comfort of the couch.
Additionally, smart retailers should leverage a top-notch engagement/conversion strategy, along with tools that help them efficiently align their internal processes to serve their EV customers, keeping them competitive in their market. These dealers are recognizing the importance of integrating a seamless e-commerce strategy with their lead-gen strategy and media mix. That way, they can reap the benefits of drastically lower costs per sale, faster processes, increased customer satisfaction and surging service retention.
Last but not least, leveraging payment-first technologies that provide a 1:1 personalized shopping experience could easily seal the deal. This allows buyers to simultaneously shop for their EV vehicle and get financing across a dealer’s entire offering: real-time inventory, all terms financing programs, with all rebates, incentives, specials, ePricing, and trade-in equity calculated and applied at the end.
With these strategies in place, dealers and their OEM partners can go beyond just the sizzle and finally start selling the steak to the rest of the car-shopping population. It’s a sound strategy considering they still felt more comfortable buying the other 94.2% of gas-powered cars and trucks in 2022.
Lauren Donalson is senior vice president of client experience and client services for PureCars. For more information, visit www.purecars.com.
Experian is expanding on its commitment to equip dealers with the data needed to buy and sell used electric vehicles with confidence, especially since battery health is pivotal in valuating used EVs.
On Thursday, Experian announced a new alliance with Recurrent, as the Recurrent Battery Report for used EVs will be offered alongside Experian’s AutoCheck reports.
The Recurrent Battery Report offers additional data and attributes on an EV’s battery health, including battery insights, weather impact and more.
While dealers and consumers alike have historically looked to a vehicle’s milage as an initial barometer for condition, Experian acknowledged range and battery longevity are more informative for used EVs, which have not been available with a vehicle history report until now.
The Recurrent Battery Report is designed to bring additional transparency to the used EV purchase process — augmenting the information of the AutoCheck report to answer specific questions about the purchase of a used EV.
“Our new alliance with Recurrent ensures data attributes unique to EVs are easily accessible for all parties whether looking to buy or sell a used EV—which is essential knowledge in today’s evolving market,” said John Gray, Experian’s president of automotive for North America.
“As EVs continue to grow in popularity, offering the Recurrent Battery Report with AutoCheck reports will bring a level of assurance dealers have been previously unable to attain when buying or selling used EVs, increasing transparency and easing range anxiety for consumers,” Gray continued in a news release.
The Recurrent Battery Report is designed to answer common questions from used EV shoppers.
Each report includes a Range Score, which compares a vehicle’s current max range to the original range for that make, model, and battery pack configuration. For example, a Range Score of 94 means that the vehicle is expected to get 94% of its original range.
Generated through a VIN-specific inspection that combines each vehicle’s history and battery data, the Recurrent Battery Report compares the vehicle to thousands of others in the Recurrent database.
Recurrent’s proprietary algorithm provides battery performance and range projections across most manufacturers and EV models. Additionally, the report shows projected range in different weather conditions, which often decreases in the cold, and what range an owner should expect after three years of ownership.
“Car dealerships are getting lots of new questions from their customers about range and battery health,” Recurrent CEO and co-founder Scott Case said in the news release. “How does actual EV range vary from EPA? How does range fluctuate in freezing conditions? And how does that change over time? The Recurrent Battery Report provides these answers as an excellent complement to the existing AutoCheck VHR, providing a complete solution suite for used EV acquisition and sales.”
Experian clients can now add the Recurrent Battery Report to their existing AutoCheck subscriptions.
To learn more about the new alliance and see examples of the reports, visit the Experian Booth No. 423) at NADA Show 2023 through Sunday in Dallas.
For dealers not attending the show, more information can be found at https://www.experian.com/automotive/vehicle-history-services or https://www.recurrentauto.com/.
Funny thing happened when gasoline prices surged in early 2022.
A surprising number of luxury car owners traded-in their internal combustion engine Lexus, Mercedes-Benz, BMW and Audi vehicles for electrified Ford Mustang Mach-E, Hyundai Ioniq 5 and Kia EV6 SUVs.
So says a recent Edmunds study which lays out “Four Major EV Trends to Watch” and concludes that the EVs from three mainstream brands Ford, Hyundai and Kia, are winning significant conquest sales from luxury and other mainstream brands, commanding top dollar transaction prices and drawing buyers under 45.
Though gasoline prices helped pique buyers’ interest in these EVs, what’s really driving sales are attributes such as …
Read more
Electric vehicles. Yes, the market is growing. And the overall EV market bears considering. But what does the used-vehicle market EV look like? What does the data show? What is changing, and is it expanding?
That’s what Auto Remarketing considers here as we preview an upcoming session at the NADA Show 2023 in Dallas, from Kirsten Von Busch, director of product marketing at Experian.
Her session at NADA aims to cover key insights into EV markets and buyers. Von Busch shares that the EV market continues to soar as new models are being introduced into the market, and sales volumes are increasing as “consumer demand is surging.”
She will cover in her session critical insights on how to successfully market to EV consumers — new and used.
She asks these questions:
- Do you know which EVs are selling and to whom?
- How do consumer profiles differ amongst luxury versus non-luxury vehicles and various makes and models?
She will cover these topics in an effort to help attendees understand the current and future EV landscape — and how buyer profiles are shifting.
Von Busch spoke with Auto Remarketing to explore how these data points, strategies and answers apply to the new and used EV market.
According to Von Busch, the upcoming workshop will primarily take a look at new retail registrations for electric vehicles, specifically, as well as pre-owned data that may be key for dealers looking to explore financing data for used EVs.
Von Busch explained that what this workshop will be covering is specifically for electric vehicles … not hybrids, but only “plug-it-in and drive” options for car purchasers.
“So, we are seeing that market really just continue to expand in growth really from a volume perspective, by tracking the number of new-retail registrations; by looking at the growth from a perspective where those vehicles are registered,” Von Busch said.
Experian is seeing an increase in activity for these buyer profiles. She said that a lot of it can be attributed to early adopters and an increase in technology, but also the market is going to see organic growth, because of all the new EV models entering the market.
As far as the pre-owned market, Von Busch said that Experian does have data pertaining to the used market. In this area, Experian will likely focus on the used EV perspective in terms of financing trends.
In terms of pre-owned EV sales trends, the volume is just not there yet, in comparison to the new market.
But Experian is looking at sales prices, loan-to-value changes, monthly payments, and loan performance for the EV pre-owned market.
“There’s a frame of reference. There were 60,000 pre-owned electric vehicles financed in 2021. So of course, we don’t have the full numbers yet for 2022 … but as of late this spring and early this summer, we were tracking at 42,000 for this year-to-date,” Von Busch said. “So, we’re looking at it, but there’s just not a huge volume.”
Von Busch said the workshop will explore financing trends for electric vehicles, both for new vehicles as well as pre-owned, as well as how they compare to ICE (internal combustion engine) vehicles.
The workshop will also cover how dealers can market to these new EV consumers. And it comes down to data.
“EVs for new, for pre-owned, they (dealers) need to follow the data, and they need to look at the data analysis of who is buying those vehicles and how are those buyers shifting and changing,” Von Busch said.
Experian uses the term, “data-driven decisioning”, and this particularly holds true for electric vehicles.
“There was a kind of primary electric vehicle purchaser … more of like that Tesla purchaser,” Von Busch said. “Tesla has had the lion’s share for the last several years, and they still do. But their market share has declined a little bit, but their volumes are still increasing because the whole market is getting bigger.”
As the volumes in EV consumers increase, so do the nuances for these buyers. It’s not just about the “normal” EV buyers in the past, either those big on technology or big on energy conservation. The buyer pool is growing.
In the workshop, Experian leaders will look at this lifestyle EV lifestyle segmentation, will go through a couple of examples, and give tips for dealers as they are marketing to these buyers, as well as the models consumers are gravitating towards.
“What would be some good channels and some good recommendations for how they could reach them?” asked Von Busch.
So, how do EV buyers differ from luxury buyers? Often, they seem like one and the same, due to new EV vehicle price points, like Tesla vehicles and more.
Audience members to the workshop will be privy to the following: “Looking at electric vehicles as a whole and then slicing and dicing the information by segment, by vehicle type, by make, by model, by luxury versus non luxury vehicle,” said Von Busch.
Another thing Experian looked at specifically is the generational footprint.
“We also looked at household income, not just for all EVs but segmenting it for luxury electric vehicles by segment and non-luxury electric vehicles, as well,” Von Busch said.
The market is moving past that initial early adopter phase (50 years age and up), and there’s also a lot of additional models available — and there will be even more available in the future. And so now, there’s a whole different segmentation of EV buyers to market for dealers.
In terms of how the EV market is changing, Von Busch noted it’s going to be “really exciting” to watch for the next few years.
“I like the data. I like the information but looking at how that applies to real life in real time is so interesting, ‘’ Von Busch said. “And we have this unique set of circumstances right now with new-model (EV) entrance, volumes increasing and some economic factors as well that are going to really continue to have electric vehicles in the forefront.
“It’s going to be a hot topic for the next few years.”
From a dealer perspective, there may still be some hesitancy sometimes around EVs. But Von Busch said that it’s exciting because some dealers are embracing EV, and it may be an opportunity for them to redefine themselves.
When gas prices shot up in the first half of 2022, so did demand for used electric vehicles. Their auction values rose accordingly. Used hybrid values also rose as demand for less gas-hungry vehicles surged.
When gas prices began to ease, EV values at auction also softened, George Chamoun, CEO of online auction ACV, tells Auto Remarketing. Surprisingly, however, hybrids values …
Read more
Electric vehicle sales are the talk of the town — or at least the auto industry at large and even in the auction lane.
Overall new- and used-vehicle sales fell as 2022 ended, but EVs followed a different path.
During a recent call with the auto industry and media, Cox Automotive cited data from its Kelley Blue Book division indicating that …
Read more
While Black Book shared its usual wholesale price trends, perhaps what intrigued analysts most during the second week of 2023 was the quick impact Tesla’s price decision involving new models left on the OEM’s used electric vehicles.
Black Book said in the newest installment of Market Insights released on Tuesday that “the big news will be what happens to used Tesla values after Tesla shocked us all with …
Read more
