Key insights into electric vehicle markets, buyers and sellers

electric car. Yes, the market is growing. The overall electric vehicle market bears consideration. But what do used electric cars look like in the used car market? What does the data show? What is changing, and is it expanding?

That’s what Automatic remarketing Here we’re looking at a preview of an upcoming session at the 2023 NADA Show in Dallas, from Kirsten Von Busch, Experian’s Director of Product Marketing.

Her session at NADA aims to cover key insights into the electric vehicle markets and buyers. Von Busch notes that the electric vehicle market continues to rise as new models are introduced to the market, and sales volumes increase as “consumer demand rises.”

In her session, she will cover important insights on how to successfully market electric vehicles to consumers – new and used.

Ask these questions:

• Do you know which electric cars to sell and to whom?
• How do consumer profiles differ between luxury and non-luxury cars and different makes and models?

You will cover these topics in an effort to help attendees understand the current and future electric vehicle landscape – and how buyer profiles are changing.

Von Bosch spoke with Automatic remarketing To explore how these data points, strategies, and answers apply to the new and used electric vehicles market.

According to von Bosch, the upcoming workshop will primarily look at new retail registrations for electric vehicles, specifically, as well as pre-owned data that may be key for dealers looking to explore used electric vehicle financing data.

Von Bosch explained that what this workshop will cover is specifically for electric cars…not hybrids, but just “plug and drive” options for car buyers.

“So, we’re seeing the market continue to really expand to really grow from a volume perspective, by tracking the number of new retail registrations; by looking at growth from a perspective of where those vehicles are registered,” von Bosch said.

Experian is seeing an increase in the activity of these buyer profiles. Much of it can be attributed to early adopters and increased technology, she said, but also that the market will see organic growth, due to all new EV models entering the market.

Regarding the pre-owned market, Von Busch said Experian has data regarding the used market. In this area, Experian is likely to focus on a used electric vehicle perspective in terms of financing trends.

In terms of pre-owned electric vehicle sales trends, the volume isn’t quite there yet, relative to the new market.

But Experian is looking at sales prices, loan-to-value changes, monthly payments, and loan performance for the pre-owned electric vehicle market.

There is a frame of reference. 60,000 used EVs funded in 2021. So of course, we don’t have the full numbers yet for 2022…but as of late this spring and early this summer, we’ve been tracking 42,000 cars for the year-to-date,” von Bosch said. “So, we’re looking at it, but it’s not huge.”

Von Bosch said the workshop will explore financing trends for electric vehicles, both for new and used vehicles, as well as how they compare to internal combustion engine vehicles.

The workshop will also cover how dealers can market to these new EV consumers. And it’s about the data.

“New, pre-owned electric vehicles (dealers) need to keep track of the data, and they need to look at analyzing the data about who buys those vehicles and how those buyers are shifting and changing,” von Bosch said.

Experian uses the term “data-driven decision,” and this is especially true of electric vehicles.

“There was a kind of core electric car buyer…more like a Tesla buyer,” von Bosch said. “Tesla has had the lion’s share over the past several years, and continues to do so. Their market share has come down a little bit, but their volumes are still increasing because the whole market is getting bigger.”

As volumes increase in electric vehicle consumers, so do the nuances of these buyers. It’s not just about the “ordinary” electric vehicle buyers of the past, both those big on technology and the big ones on energy conservation. Buyer pool is growing.

At the workshop, Experian leaders will look at this EV and lifestyle segment, touch on a few examples, and offer tips for dealers as they market to these buyers, as well as which models consumers are most drawn to.

“What are some good channels and some good recommendations for how to access them?” von Bosch asked.

So, how are electric vehicle buyers different from luxury vehicle buyers? They often look the same, given the price points of new EVs, such as Teslas and more.

Audience members at the workshop will be informed about the following: “Looking at electric vehicles as a whole and then chopping and dicing the information by segment, vehicle type, make and model, luxury vehicle versus non-luxury vehicle,” said Vaughn. Bush.

Another thing Experian looked at specifically is the generational footprint.

“We also looked at household income, not only for all EVs but also breaking it down into luxury EVs by sector and non-luxury EVs as well,” von Bosch said.

The market is moving beyond the initial early adoption phase (50 years and older), and there are also plenty of additional models available – and there will be even more available in the future. And now, there’s a very different segmentation of EV buyers marketing to dealers.

On how the electric vehicle market will change, von Bosch noted that it will be “really exciting” to watch over the next few years.

“I like data. I like information but looking at how that applies to real life in real time is very interesting.” And we have this unique set of circumstances right now with new model (EV) going in, increasing volumes and some economics that will really continue to Bringing electric cars to the fore.

“It will be a hot topic in the next few years.”

From a dealer’s perspective, there may still be some hesitation at times about EVs. But Von Busch said it’s exciting because some dealers are embracing the EV, and it could be an opportunity for them to redefine themselves.