The electric vehicle (EV) market has raised major concern for potential buyers that the resale value of these vehicles is horrendous. Recent data shows that many EVs, particularly those made by legacy auto companies, are losing more than 50% of their value within just one year. This alarming trend has raised questions about whether car dealers should be required to disclose the resale riskiness of EVs, just as stock brokers must do with investments.
For example, the Ford Mustang Mach-E and the Hyundai IONIQ 5, two popular EV models, have been found to depreciate at an alarming rate. Some owners may not be able to recover their initial investment for up to seven years. This situation has led to calls for increased transparency in the EV market, with some arguing that car dealers should be required to inform potential buyers of the potential risks associated with EV resale values.
The idea of mandating disclosure of resale risks for EVs is not without precedent. In the financial industry, stock brokers and brokerage accounts are required to disclose risks to investors before they invest their money. This ensures that potential investors are fully informed of the potential downsides of their investment decisions.
Requiring car dealers to disclose the resale risks of EVs could help consumers make more informed decisions about their purchases. This could involve having the customer sign a document acknowledging the risks before they finalize their purchase. This approach would ensure that buyers are aware of the potential depreciation of their EVs and can make more informed decisions about whether the investment is right for them.
Also, is the MEDIA to blame for for these owners misfortunes? For example, WHY does an outlet like Consumer Reports never say even one word about how miserable the resale is?
It almost seems that EV purchase are a risky as put and call options and penny stocks.
Discuss