Demand dropping / asking price dropping?

[DonnieJ]

Right now I wouldn't buy a car new or used unless if was an absolute necessity. Wait a few months and prices will be significantly lower plus interest rates will fall.

Well unfortunately for me the mach e I ordered comes in next month soooooooooooo......... but maybe it will be delayed and maybe something will change during that time but I highly highly doubt

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[Socalsp3]

Well unfortunately for me the mach e I ordered comes in next month soooooooooooo......... but maybe it will be delayed and maybe something will change during that time but I highly highly doubt

Interest rate probably won't fall for the next 12 months. Inflation is at 7%

 

[Phil Martin]

There was never an EV mania - EVs account for 5 or 10% of new car sales. EVs are a cool luxury good, that is heavily subsidized by many governments. And non-luxury competitors (ICEV) are being outlawed by a few governments.

EV sales volumes will rise or fall based on evolving economics, technology and government diktats.

When everyone is jumping over each other for an EV and spending top $$$, it's a mania. Others also tried to get on the equity side hoping to catch a rocket ride only to watch their investments go up in smoke.
Buying frenzies happen in many markets for different reasons, this is no different.

 

[phil]

When everyone is jumping over each other for an EV and spending top $$$, it's a mania.

Exactly - when 'everyone' does that, you have a mania.

In the US auto market, we see a very different situation. 95% of car buyers are happy with ICEVs. A handful of us who can afford it, pay a little extra for electric. Not exactly a "frenzy" or "mania".

 

[Maquis]

Exactly - when 'everyone' does that, you have a mania.

In the US auto market, we see a very different situation. 95% of car buyers are happy with ICEVs. A handful of us who can afford it, pay a little extra for electric. Not exactly a "frenzy" or "mania".

Correct, not a mania or frenzy, just a transitory supply/demand imbalance that is beginning to work itself out.

 

[Phil Martin]

Exactly - when 'everyone' does that, you have a mania.

In the US auto market, we see a very different situation. 95% of car buyers are happy with ICEVs. A handful of us who can afford it, pay a little extra for electric. Not exactly a "frenzy" or "mania".

Call it whatever you want that suits your needs. It's a mania when buyers start piling on top of each other and paying top $$$ whether it's 10 buyers or a million. Happens everywhere often.

 

[mjs020294]

Well unfortunately for me the mach e I ordered comes in next month soooooooooooo......... but maybe it will be delayed and maybe something will change during that time but I highly highly doubt

Our order arrives next month as well but we are not proceeding with the purchase. The drop in used values since August plus the loss of half of the tax credit makes the deal much less desirable. A continued decline in used car values will bite on the back-end when we dispose of the Mach E. Its just not such a good deal anymore so its best to walk away.

 

[dtonn]

All of the above is true in some fashion.
EV market is slowing
Used car prices are dropping (I sold my 21 GTPE with 2,800 Miles on it in october to a Ford dealership for $65.5K, they started at $71K and now down to $64K...and not sold! If interested then link is below...I added Tint, PPF, and Ceramic coat.

https://www.randallreedsplanetford.com/inventory/pre-owned-specials/models-Ford-Mustang_Mach--E/

Take a step back and think...if you are an average joe, does it make sense to spend $70K and have a $1K monthly payment right now with interest rates and looming recession.

So all it takes is patience. Various Ford dealers have been calling me about a declined Mach E and asking if I wish "to bid" on it since they expect it to go for "at least" $12K over MSRP...

I declined to participate in the auction.

May I ask...a 21 GTPE with a mere 2,800 miles on it... why?

The current asking price on this is now less than the 2023 Premium AWD ER I have coming, which will not arrive this year, hence also costing me the tax credit....

Something to think about.

 

[Rpgonzalez]

I looked at the prices for used Mach E GT PE recently and for a 2022, they are now going for 65-70k on auto trader. Back when I bought mine (April), they were asking 90k for the same used. Is this already the decline of the Mach e overall value with so many other EVs coming out?

Those prices were a classic example of a bubble.

I scrambled to find a Mach-e last month because I knew the ridiculous trade-in price for my model 3 wasn't going to last. Sure enough, just checked and the Model 3 trade-in price dropped by $8k.

Maybe I'm simple minded, but the reason to me was clear. Gas prices go up, people panic. Its happed before. Gas prices go down, truck/SUV sales go up. Then the same people whine when they pay way over sticker for an EV when gas prices shoot up again. I predicted this before interest rates went up ...

I think that the next phase will prove to be challenging for EV sales. Demand will drop, consumers will want a deal, but mining for batteries will continue to get more expensive. Maybe Im wrong on that last one, and maybe the cost for batteries will dip if demand relaxes. But Ford and Tesla raising prices like crazy will surely cause problems for them in 2023.

 

[KevinS]

I imagine we'll see a seasonal drop because people will freak out when their range drops in the winter. Hell, I'm seeing a 25% drop myself and am not happy about it.

 

[LAZARU5]

You would think, but when I look up the Taycan you have to pay almost new price for a 2020 still.

They may be listed at obscenely high prices but they are not flying off the lots. I traded a 2022 Taycan CT4 at the end of October. Original MSRP was $104500. Trade-in was $88K (down from a $92K offer the month before). Dealer offered the car for sale at $28K over the trade-in price. Seven plus weeks later the car is still for sale, now at $110K or only $5500 over original MSRP. The one year lead times to get an ordered Taycan, plus the fanatic loyalty of many Porsche owners willing to overlook the issues with the car is what keeps the prices high.

 

[dbsb3233]

Those prices were a classic example of a bubble.

I scrambled to find a Mach-e last month because I knew the ridiculous trade-in price for my model 3 wasn't going to last. Sure enough, just checked and the Model 3 trade-in price dropped by $8k.

Maybe I'm simple minded, but the reason to me was clear. Gas prices go up, people panic. Its happed before. Gas prices go down, truck/SUV sales go up. Then the same people whine when they pay way over sticker for an EV when gas prices shoot up again. I predicted this before interest rates went up ...

I think that the next phase will prove to be challenging for EV sales. Demand will drop, consumers will want a deal, but mining for batteries will continue to get more expensive. Maybe Im wrong on that last one, and maybe the cost for batteries will dip if demand relaxes. But Ford and Tesla raising prices like crazy will surely cause problems for them in 2023.

I agree in part. Gas prices are certainly some of it. When they go way up as they did over the last 2 years, that's gonna motivate more to look at EVs. But that only goes so far, especially after they look at those EVs and see the $50k, $60k, $70k price tags (and $1000+ car payments). Most of those people say "Whoa! I think I'll stick with $4 gas" at that point. They're still largely upper-market cars. Nonetheless, gas prices surely did add to demand by some.

The tax credits did too. Now those credits are more confusing, have some uncertainly, and for many EVs got cut in half or went away completely (although others got them back).

Even bigger are the soaring interest rates. Car loans going from 3% to 7% in just a few months is a killer for many.

And of course, the stock market being down over 10% on the year, inflation through the roof, and other economic uncertainly really puts a damper on high$ purchases too.

As for the Mach-E itself, there's more competition now. It's not the hot item it was in 2021. And that pesky HVBJB issue doesn't help.

 

[RagingDork]

I only looked for a few weeks after I bought mine in October. When a few of the surrounding dealers get a bunch in the price drops but when theres only one or 2 in the area they start playing games again. I’m in California Bay Area btw.

 

[Bodyshopguy]

I looked at the prices for used Mach E GT PE recently and for a 2022, they are now going for 65-70k on auto trader. Back when I bought mine (April), they were asking 90k for the same used. Is this already the decline of the Mach e overall value with so many other EVs coming out?

All dealerships have inventory again.... A friend of mine bought a Mach E California... and still paid 5k over MSRP. My GT PE MSRP was 72K... without any ADM because, I ordered it. I tell everyone... do not pay over MSRP... I can't imagine paying 82K or 92K for my 22 Mach E GT PE... (might as well buy a Tesla Model S) the price tag stings already... I love the car but, I think it cost too much... Interest rates have gone up... That will affect people buying cars too... I wish I had auctioned mine off at Barrett Jackson... Can't believe one sold for 113k... just remarkable...

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