A new breed of “Flipper” has emerged and is riding the zero-emissions craze to huge profits. A unique convergence of challenges afflicting electric vehicle manufacturers including supply chain issues, semiconductor shortages, unfulfilled production objectives, an increasing scarcity of lithium batteries, as well as record fuel prices, high used car prices, and long waiting lists for electric vehicles, has created a fertile ground for this new capitalistic endeavor.
Consider the individual attempting to sell a nearly new 2022 Hummer EV1 on Facebook for $220,000. It had previously sold for less than half that amount, for $105,000.
On Facebook, two 2022 Rivian R1T electric adventure cars are advertised for $123,000 and $220,000, respectively. The identical car begins at $67,500 on the Rivian website.
Buyers on the internet auction site Cars & Bids might find them for $97,000 and $103,000. Although the most ridiculous requests for double to triple the value of certain EVs are either disregarded or aggressively criticized online, other less ambitious postings are succeeding. Cars & Bids, for example, display 14 recent R1T transactions from April 12 to June 28 at prices ranging from $106,000 to $138,000.
Tesla increased the price of its Model Y by 5% in June, to $65,990, but that hasn’t deterred the flippers. Edmunds just listed a Model Y with less than 2,800 kilometers for $70,995. Edmunds deemed that an “excellent deal,” at $1,739 “below market,” as in what the market believes such a car is worth.
According to Recurrent, which studies the used EV industry and gives vehicle buyers unbiased data on EV performance and battery life, 2021 used EVs “make up a remarkable 17.5% of inventories.”
The Seattle startup discovered that secondhand EV prices have risen by 25% since March 2021. According to the report, a 2021 Mustang Mach E was selling for 60% more than it was last year. Recurrent stated that the used EV sales trend was strongly biased toward the most recent model years available, citing “the new normal, higher costs are here to stay.”
“Anecdotally, we’ve heard of numerous owners who sold very new cars to dealers and made more than their purchase price, and the figures support this,” Recurrent added. “The process of reselling a barely-used automobile varies depending on the model. In the case of Teslas, the price of new vehicles climbed so dramatically last year, and the waiting lists for new vehicles are so lengthy, that the value of used cars surged.”
If you have a relatively new EV and looking to make some extra cash, Recurrent advises that you get into the EV flipping game now.