Used Teslas Lose Their Charge, EVs Ditch Brand Loyalty Rules, Most Popular Xmas Gifts

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

It’s Wednesday on that weird holiday week as we talk about the continuing used car correction being led by Tesla. We also talk about what EVs are doing to the brand loyalty landscape, as well as reviewing the list of most popular Christmas gifts of 2022.

• The general used car market is seeing values decline, but not as quickly as the used Tesla market which is down 17% in Nov compared to 4% according to Edmunds Data.
  • In August 33%+ of all used Teslas on the market were 2022 models being flipped for profits of $12k plus (other brands were only at 5%).
  • A combo of rising gasoline prices, an increase in Tesla's output, and the growth of electric vehicle competition, are contributing to the pricing pressure
  • Tesla recently doubled its discount on new vehicles to $7500 to support new sales
  • Greg Profitt, a software engineer, purchased a new Model Y last year for $49,000 and was able to resell it three months later for $12,000 more. He then decided to order a new one, but ultimately ended up purchasing a used Tesla at a discounted price instead.
  • Carmax is also indicating what some are calling an used car recession, reporting an 86% decline in Q3 profit
    
• EV buyers are more likely to switch brands than traditional car buyers, according to research from Edmunds.
  • 80% of people who bought Kia's EV6 traded in something other than a Kia, compared with 61% for all its models.
  • More than two-thirds of Ford's Mustang Mach-E electric sport-utility buyers had non-Ford trade-ins, compared with Ford's 42% brand-wide avg
  • Rivian said purchasers of its trucks and SUVs are about as likely to own a $30,000 Subaru Outback as they are a $100,000 Porsche 911
  • Limited availability is leading to buyers willingness to look elsewhere
  • “We’re seeing all kinds of trade-ins,” said Beau Boeckmann, president of Los Angeles-based Galpin Motors Inc., which owns one of the biggest Ford dealerships in the U.S. “Everything from BMWs to commuter cars, even some trucks.”
  • Chevy Bolt owner, Jason Kint recently had trouble finding his EV of choice to replace his 10 yr old bolt. He looked at the VW iD4, Kia EV6, and Hyundai Ioniq 5 landing on the Ioniq and saying he can see himself sticking with the brand
    
• Most popular Christmas Gifts of 2022 according to google
  • Tech: Beats headphones and Nintendo Switch
  • Fitness: Adjustable dumbbells, pickleball paddles, massage guns
  • Apparel/accessories: health tracking jewelry, trendy boots
  • Toys: Expert-approved STEM toys and craft kits

Hosts: Paul J Daly and Kyle Mountsier
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