A new report points to significant hurdles for electric vehicles (EVs) in appealing to the majority of pre-owned vehicle buyers. This could potentially prolong the lifespan of internal combustion engine (ICE) vehicles and boosting the ICE aftermarket well into the future.
The Lang Marketing report, EVs Lack Appeal for Many Pre-Owned Buyers, Boosting the Long-Term ICE Aftermarket, highlighted the challenges facing EV adoption considering that 80 per cent of vehicles on the road are pre-owned vehicles in the U.S.
Buyers of such vehicles are not as enthusiastic about EVs as new-car buyers, raising concerns about the long-term viability of the used electric vehicle market, Lang noted.
“”Without a strong market of secondary buyers who will purchase an increasing number of pre-owned Electric Vehicles, sales of new BEVs face strong headwinds, likely causing Internal Combustion Engine (ICE) vehicles to remain on the road longer than is common today,” Lang’s report said.
Here’s a rundown of what its report found.
New vs. pre-owned EV buyers
While EVs, particularly battery electric vehicles (BEVs), have gained traction among environmentally conscious new-car buyers, they remain largely a niche product.
Many new BEV owners are willing to overlook the operational limitations of current EV technology, including range, charging issues, and long-term reliability. However, these factors pose significant barriers to entry for pre-owned buyers, who may not have the flexibility or resources to navigate these challenges.
Range anxiety and charging infrastructure
One major obstacle is range anxiety. Many pre-owned vehicle buyers place greater importance on driving range than their new-car counterparts. While current BEV owners tend to drive fewer miles annually, this is not the case for most used-vehicle buyers. Furthermore, as the report notes, over 75 per cent of new BEV buyers charge their vehicles at home—an option that may not be available to many pre-owned buyers, particularly those living in apartments or lacking the necessary charging equipment.
The report stressed the need for a nationwide fast-charging network to accommodate the growing number of all-electric vehicles.
“Construction of an efficient and convenient charging infrastructure is a massive challenge, and even with strong government support, it will likely not be achieved for many years,” Lang said.
Reliability
Another major concern highlighted in the report is the long-term reliability of BEVs, particularly the cost of battery replacement. With battery replacements potentially exceeding US$6,000, many older BEVs may be scrapped rather than repaired. This is especially concerning to Lang given that the average vehicle on U.S. roads today is nearly 13 years old.
Moreover, some BEVs, like Tesla, may suffer from operational issues linked to relatively minor body damage, a problem that could disproportionately affect pre-owned buyers.
The future of ICE vehicles
Given these challenges, Lang Marketing predicted that ICE vehicles will continue to be a staple of the automotive landscape for many years to come. Their ability to meet critical driving needs — such as long-distance travel, ease of refueling, and performance in extreme weather conditions — ensures that many consumers will hold onto their ICE vehicles for longer.
The report further noted that while EVs will continue to increase their share of new vehicle sales, they may struggle to meet the needs of the pre-owned market. This could pave the way for a “Golden Age” of the ICE aftermarket, expected to extend well past 2040.
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