Exponential Markets' Fortin on 'volatile' EV pricing
Used EV values have fluctuated amid uncertainty over tax credits and potential tariffs. “For the used EV market, if you want to describe it in one word right now, it's ‘volatile,’” Paul Fortin, co-founder and head of automotive products at Exponential Markets, told Auto Finance News. “The reason it's volatile is that the overall -car market right now is also volatile. There's uncertainty with macroeconomic variables, there’s uncertainty with industry variables, and there’s a normal volatility that exists,” he said. In the short term, with talk of federal tax incentives being eliminated, consumers are rushing to purchase a used EV or lease a new one before the incentives are removed, Fortin said. In January, used EV sales increased 30.5% year over year, reaching 26,933 units, while the supply of used EVs tightened to 45 days’ supply, down 23.3% YoY, according to a Feb. 20 report by Cox Automotive. Meanwhile, after declining in January, the Exponential Electric Vehicle Index, measuring wholesale prices of used EVs and inventory awaiting sale, landed at 91.88 as of Feb. 20, up 1.6% year to date, and 4.2% YoY. “In the short term, you have these forces that are pushing values up,” Fortin said. “On the longer term, you have these forces that are pushing [values] down.” During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Associate Editor James Van Bramer discusses used EV price volatility with Exponential Markets’ Fortin. Subscribe to “The Roadmap Podcast” on iTunes or Spotify, or download the episode.