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Used cars + Price drop with return of EV credits under new US Administration

1pt21Gigawatts

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With the new administration next year, what do we think the chances are of the EV tax credit returning for OEMs that have already exhausted theirs?

I can only imagine this would have a big impact on our MSRP, and residual values, as competitors suddenly gain back $7500 causing Ford to have to drop, and tech ages making residuals plummet as new tech comes out.

Are we better off waiting until the used ones come on the market for that precipitous drop in value? And if so when do we think the earliest might be for used Mach-e vehicles to become available?
 

stroszek

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With a GOP Senate it won't happen and with a 50-50 Senate it very likely will not happen.
 

timbop

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With a GOP Senate it won't happen and with a 50-50 Senate it very likely will not happen.
That's probably true, although there was bipartisan support in the senate for doing so in 2019 before Trump killed it. It would be nice if the bipartisan support for it was still there, but probably not.
 

generaltso

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If you worry about what might change at some point in the future, you’ll never end up with the car that you want.
 

shutterbug

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I can only imagine this would have a big impact on our MSRP, and residual values, as competitors suddenly gain back $7500 causing Ford to have to drop, and tech ages making residuals plummet as new tech comes out.
There are only 2 competitors that lost their tax credit. Chevy Bolt is already cheaper than Mach-E. Tesla will simply raise the price. Just like they lowered the price when they lost their credit.
 
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1pt21Gigawatts

1pt21Gigawatts

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If you worry about what might change at some point in the future, you’ll never end up with the car that you want.
I’m not really up worried about the car that I want, it’s more about the car I can afford. I can’t really afford for an extra $10,000

By all accounts, we are all nuts. I’m hoping I’m not the only one, but I go on long road trips often and this car really isn’t adequate for that. I’m going to need a second car and that just adds even more cost.

Between the cost of that second cheap ICE and another 10,000 and appreciation, it makes me think the only way I’m gonna be able to do this is if I get it used in three years.

When do people think this is going to start showing up used? Before three years?
 

dbsb3233

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When do people think this is going to start showing up used? Before three years?
There will always be some, but I'd guess relatively few. Although it really depends on how fast things change (especially batteries). If the 2023's are significantly better than the 2021's, some people will sell and upgrade. But if things haven't changed that much, and the car proves popular vs the competition, few will be letting them go.

With only 50k being made for 2021MY, and battery supply looking to stay tight for a few years, I'm guessing the vast majority will hang onto them. And I doubt the 200k limit will be raised on the federal tax credit. That would be pretty unfair to all automakers that planned according to the rules.
 



 









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