Should you buy a (used) Tesla now?

Yes, we’re talking about EVs in this issue, but with due reason.

It’s fascinating how the market has changed, and EV sales keep dropping. Let’s face it, this EV push wasn’t the way to go.

That’s not to say EVs will be the way of the future, but, right now, I’m not towing in a Cybertruck.

Key Takeaways

Don’t have much time? Here’s the summary of what we’re talking about:

• EV Market Woes: The push for electric vehicles (EVs) is facing challenges with declining sales momentum, all thanks to one brand: Tesla.

• Hertz's Tesla Dilemma: Hertz's significant investment in Tesla EVs for its rental fleet backfired due to unpredictable pricing and high maintenance costs.

• The Used EV Market: The influx of 20,000 used Teslas into the market, coupled with their lower-than-expected resale value, could be appealing.

• Do you want a Tesla? Despite lower prices, potential buyers should be wary of high insurance and repair costs.

• Tips and Best and Worst: We cover the Honda HR-V plus why fuel injectors are so expensive.

KERN’S CORNER

Is now the time to buy a used Tesla?

We'll be the first to say it: at Four Wheel Trends, we're not exactly fans of EVs. 

There's no point in comparing a well-maintained F-150, Silverado, or RAM with an electric truck. 

When you want to take your kids to visit several colleges across several states, you’re taking a good ol' combustion engine. 

All you need is to start up and go. 

There's no need to plan a route depending on charging stations, let alone worry about whether the charging station is working. 

At the same time, we understand why the change is happening. Recently, we wrote about why the EPA regulations make sense.

Lowering emissions helps curb climate change. 

However, pushing everyone into buying EVs is not working. No one is buying them, and it's becoming more prevalent lately. 

Let's look at the behavior and how the push towards EVs has backfired. 

The following chart shows how EV sales increased from 2021 to 2022. We saw growth not only in Tesla (the main EV seller) but also with more brands competing.

However, if you look at the source information (here) you will find that none of them truly has sustained growth.

By 2024, the entire EV effort has lost momentum, causing seismic shifts in the market. 

Granted, sales usually slow down during January. However, they’ve failed to pick up in the first quarter.

Amid this change, one brand stands above the rest, for better or worse.

In the eye of the Tesla storm

If there's anything we can say about Tesla (and Musk), it is that, somehow, the name remains in the news. 

Most recently, this man almost died when his self-driving Tesla failed to see an oncoming train. 

Near-death experiences aside, Tesla has also caused ulcers in its buyers' gastric systems. The price oscillation has been such that many stand to lose thousands of dollars. 

Granted, all vehicles depreciate, but not this aggressively. 

The following chart shows how Tesla prices have changed (aka, dropped massively) in the past 18 months.

These violent price swings are nothing but harmful to current Tesla owners. 

In fact, we can expand on this argument: these swings affect entire industries. 

By the way, this fascinating chart is only a summary that goes back to 2022, and we've summarized it to only some models and not all of them. 

If you want to research the entire database, here it is.

It's open, and if you want to customize it, you only need to create a copy. 

The Hertz-Tesla battle 

While the Hertz-Tesla battle might sound like a physicist's dream bout, it's much more than that.  

Car rentals not only profit from renting cars, as odd as it sounds. 

These companies also rely on, eventually, selling their massive fleets for some profit. After all, they buy thousands of them and expect a huge discount. 

These companies calculate the expected depreciation. At the end of the vehicle's useful life, they sell it off.

It's essential for that depreciation to stay within the predicted range, and it usually does. Granted, situations such as the Pandemic can change it. However, for the most part, it remains constant. 

That's what Hertz had bet on when it purchased EVs from Tesla.  

The great EV purchase

In 2021, the company pledged to buy 100,000 to accelerate its effort to electrify its fleet. 

During that year, things seemed to be going well. Then, 2022 came along, and the unpredictable pricing became chaotic. 

By January of 2024, the situation was unsustainable for Hertz, and it took drastic action. The rental company announced that it was selling many EVs (mostly Teslas).

If we only stick to the headlines, it would make sense to believe that Musk's price cuts were the sole reason for this. 

But, if we do a bit more research, we realize there's more to it than that, as this excellent Motor Trend article puts it. 

Yes, Musk's price changes hurt Hertz badly. 

But, Tesla was failing in another aspect. Fixing a crashed Tesla, even a fender-bender, was more expensive than other EVs. 

It makes sense. It's hard for Tesla to keep up with production at the rates of GM, BMW, and VW. 

So, in desperation, Hertz sold many of its EVs. But how many? Well, 20,000 of its 50,000 EV fleet are up for sale. 

The damage didn't end there. 

The company's stock took a serious plunge after word came out. 

Every time a car rental company hurries to sell off a car before the expected depreciation run, it loses money; in Hertz's case, it's about $588 million. Ouch. 

BEST AND WORST

What are the best years for the Honda HR-V?

The Honda HR-V had a lot to live up to–succeeding the CR-V as Honda's entry-level SUV.

For the most part, it's done alright, although not with the success of its predecessor. 

So, what are the best years for the Honda HR–V? We give you the answer in this article.

TIPS AND KNOW-HOW

Why are fuel injectors so expensive?

Here's a problem you won't have in your Tesla. Whether you're working on your car at home or you take it to a shop, there's one thing for certain. 

You will pay a lot for injectors, even more so if they're good quality.

So, why are fuel injectors so expensive? Our article explains the crucial reason. 

NEWSBITES

Every week, we scour the web for the most essential news. Here’s what you need to know this week:

• Millennials are ready to go all in on Chinese cars, despite privacy concerns

• Who's the man behind some of Kia's best designs?

• Speeding cars could beep if you drive too fast

Now that you made it this far, here’s a quick poll. We’re thinking about expanding our content, and would love to hear from you!