Top reasons why 2024 is the year to buy an EV or new car
EV makers like Rivian (RIVN) and Lucid (LCID) have underwhelmed many on Wall Street after posting disappointing guidance for 2024 amidst waning demand for EVs. Despite the headwinds for EV makers, it may be the right time for consumers to purchase an EV.
Rebecca Lindland, Cars Commerce Senior Director of Industry Data and Insights, joins Yahoo Finance to give insight into the top reasons why consumers should consider purchasing an EV in 2024.
Lindland explains some of data behind what consumers are looking for and the benefits behind their interest: "We actually are seeing increasing interest on Cars.com (CARS) — our marketplace site — for electric vehicles, but we're actually seeing twice as many buyers shopping for hybrids and plug-in hybrids. And I think part of this is due to the fact that consumers really are interested in plug-in technology. They're interested in getting better fuel economy. But they don't necessarily yet feel comfortable going to a full-electric vehicle. So instead, a plug-in hybrid provides that middle ground and a great transition. You get used to plugging in your car, just like we got used to plugging in our phones. This way, a plug-in hybrid allows that transition for consumers."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
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RACHELLE AKUFFO: EV earnings continue to underwhelm. Shares of Rivian falling after full year production figures came in far below estimates down more than 26%. Rival Lucid similarly reporting weaker guidance for the year on waning EV demand also under pressure as well. Now, a new report by Cars Commerce says despite some waning demand for EVs, there is still interest in that market. And that prices may become more affordable this year.
Here with more on the report is Rebecca Lindland, Cars Commerce Senior Director of Industry Data and Insights. Thank you for joining us. So give us some context here. Given some of the price cuts that we've seen from some of these EVs and some of what we're seeing in terms of reduced production, is this the year then to perhaps buy an EV? Are the prices attractive enough?
REBECCA LINDLAND: Yeah. So Rochelle, thank you so much for having me on. I think it absolutely is a year to buy an EV, both new and used. Because we're seeing growth in inventory and supply of new EVs actually on the dealer lot, which is a big change from past years when it was sort of this couture sort of feel. Now it's ready to wear. You can go and get an EV and drive it off the lot.
We're also seeing increases in used electric vehicles. So you definitely have choices now. And you have an opportunity to test drive that vehicle before you make the commitment to purchase.
AKIKO FUJITA: Rebecca, this, of course, comes at a time when we're seeing a little more hesitation from drivers to make that transition to electric. What are you finding about how much consumers are willing to shell out for an EV? Whether it's new or used.
REBECCA LINDLAND: Yeah. So Akiko, you know, it's really interesting. We actually are seeing increasing interest on cars.com, our marketplace site, for electric vehicles. But we're actually seeing twice as many buyers shopping for hybrids and plug-in hybrids. And I think part of this is due to the fact that consumers really are interested in plug-in technology. They're interested in getting better fuel economy. But they don't necessarily yet feel comfortable going to a full electric vehicle.
So instead, a plug-in hybrid provides that middle ground and a great transition. You get used to plugging in your car just like we got used to plugging in our phones. This way, a plug-in hybrid allows that transition for consumers.
AKIKO FUJITA: Is it just about the infrastructure, though? Are you finding that costs, now that they're coming down, is also generating more interest? And what's that price point?
REBECCA LINDLAND: Yes. It certainly is both pricing and infrastructure. You know, consumers are continuing to be concerned about where are they going to charge this? How much range is there? We encourage consumers to look at installing a home charger, if they're able to, or talking to their homeowners association about installing them.
As far as pricing, though, we're definitely seeing softening, as you mentioned, of new and used EV pricing. We're also seeing opportunities to lease these vehicles. And of course, we're seeing the new regulations come in. The $7,500 tax credit, which now is actually applied at the showroom versus waiting for your taxes. So they've simplified that process when it comes to acquiring an electric vehicle.
RACHELLE AKUFFO: And Rebecca, in terms of the trends that you're looking at, because we know that for a while, it used to be all about the compact SUV. But then we saw a shift in that, looking at pickup trucks. I wasn't sure how much of that was people looking, perhaps, for Cybertruck alternatives and things like that versus if that's translating into actual sales.
REBECCA LINDLAND: So we're actually seeing some of the top interest on the site continues to be those pickup trucks for sure. But consumers are looking for all different types of vehicles. With electric vehicles, you've got options from a host of manufacturers, not just the Teslas and Rivians as you're showing now.
But we've got the Ford F-150 Lightning, which continues to be very popular on the site. So we're still seeing a lot of interest in those compact SUVs as you mentioned, but also in these full-size SUVs. We're also seeing consumers interested in getting a good buy. One of the things we're looking at is that the market is moving towards a buyer's market. We're starting to see more supply. So that's absolutely one of the trends that we're watching really closely.
RACHELLE AKUFFO: And in terms of the most popular, the best selling brands in both luxury and mass market, we're looking here at a fastest selling-- so Toyota for mass market, Lexus for luxury. Why do you think they're so well positioned?
REBECCA LINDLAND: So I think that they always have had a good handle on balancing inventory with demand. And you know, typically, the ones that you're showing there, they tend to say-- they constrain supply a little bit. And they really are great at measuring that inventory, how much is on the dealer lot versus the consumer demand.
And again, there continues to be a tremendous amount of interest on cars marketplace for the Hondas of the world, Toyotas, I think BMW is second when it comes to luxury right behind Lexus. So there's a lot of activity for these both Japanese brands, European brands, the luxury market continues to do quite well.
AKIKO FUJITA: Rebecca Lindland, Cars Commerce Senior Director of Industry Data and Insights. Good to have you on today. Thanks so much.
REBECCA LINDLAND: Thanks so much, Akiko.
