this post was submitted on 06 May 2024
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There’s already a solid market for used cars, unless you mean EVs, so no use for an incentive there.
The point of an incentive is a temporary tool to accelerate the transition to less polluting technology. While EVs are new they naturally are more expensive, there’s temptation to import from cheaper countries, but the incentive makes them less expensive to buy, plus incents growth of local industry. I’d also vote to phase out the incentive after that transition has happened: fossil fuel incentives should have been gone half a century ago.
If you’re specifically talking the used EV market, the most important factor is time. The more new EVs there are, the better the used EV market will be in a few years. It doesn’t help to try to increase sales of used EVs when there are so few. If you are looking used, please be patient: let’s do what we can to accelerate the growth of new EVs, and one of the benefits will be a strong used market in a gpfew years
Yes, I'm talking specifically about used EVs. We have an incentive for buying used from a dealer, but that doesn't apply if I buy from the owner directly.
So all it's doing is funneling money to dealers. Why would I buy a car for $20k from a private seller if I can get a similar car for $22k from a dealer with a $4k credit (so $18k net)? The private seller would have to sell for $18k to be on par, so why wouldn't they sell to the dealer for $19k? In this scenario, the dealers pocket the difference. If I could get the credit for private sales, I'd be willing to pay $21k ($17k net), so both I and the seller are better off (seller gets $2k more, I pay $1k less). The result is that prices for used EVs stay higher than they normally would because the private market can't effectively put downward pressure on prices.
It's entirely stupid. The dealer certainly provides some level of value (financing, selection, etc), but the private option should be practical for those who don't need or want what dealers provide. I have never purchased a car from a dealer, and I don't plan to start now (I don't trust them), and it's part of why I don't have an EV.