PR & News Car Dealership Guy: "So — let's cut to the chase. Is there money to be made on used EVs or not?"
- Thread starter garbe
- Start date
If the tax credit goes away around the same time the market is flooded with lease returns I can see pricing coming down again which will be great for consumers. Early adopters are paying the price, being slightly offset by tax credits.
The issue with profitability now is MMR=retail for the majority of used EVs. Dealers are relying too heavily on the tax incentives in order to turn the inventory. If you're playing in this space, which I strongly feel you should be, it's imperative you have a fast exit strategy due to the volatility of their value.
Some of the biggest wins I've had this year have been on used EVs and we haven't been pushing the tax credit narrative as hard as I would have liked. Margin compression (thanks incentives) killed front end profitability 5-6 months ago but there's still opportunity if you're willing to dig and advertise properly.
The issue with profitability now is MMR=retail for the majority of used EVs. Dealers are relying too heavily on the tax incentives in order to turn the inventory. If you're playing in this space, which I strongly feel you should be, it's imperative you have a fast exit strategy due to the volatility of their value.
Some of the biggest wins I've had this year have been on used EVs and we haven't been pushing the tax credit narrative as hard as I would have liked. Margin compression (thanks incentives) killed front end profitability 5-6 months ago but there's still opportunity if you're willing to dig and advertise properly.
