Used Electric Cars Surge in Value Amidst Market Shifts
The Israeli used car market is experiencing a surprising comeback for electric vehicles (EVs), defying the general trend of depreciation. While high gasoline prices have consumers looking for alternatives, data from the Levi Yitzhak price index and industry experts reveal that certain EVs, particularly those from brands like Tesla, Zeekr, and XPeng, have seen their values increase between January and July 2023. The Tesla Model 3 Standard, for instance, jumped 19% in value, from 119,000 to 142,000 shekels. This trend is attributed to the high prices of new cars pushing buyers towards the second-hand market, where some EVs are becoming more accessible.
However, the EV market remains polarized. While some models are appreciating, many others continue to depreciate significantly. Skywell ET5, Fiat 500e, and Skoda Enyaq all lost over 19% of their value, partly due to import halts or production freezes. Experts note that brands with consistent import and strong market presence, like BYD, are showing lower depreciation rates and even occasional price increases. Conversely, models from manufacturers with halted production or imports, such as Udelv, Aiways, Polestar, and JAC, continue to lose value rapidly.
The broader used car market shows strong demand for hybrid vehicles, with models like the Toyota Yaris Hybrid and Hyundai i20 holding their value or even slightly increasing. Small gasoline cars also remain popular within the 50,000-100,000 shekel budget range. High interest rates, ranging from 7-8% from financing companies, are making more expensive cars, especially those over 150,000 shekels, less affordable, further boosting demand for cheaper used vehicles.
Luxury car sales have slowed, influenced by higher financing costs and a post-October 7th reluctance to display wealth. Additionally, the influx of well-equipped Chinese brands in the 160,000-230,000 shekel range is impacting traditional luxury brands. Despite this, some high-end vehicles like the Ferrari Roma and Porsche 911 have shown minimal depreciation.
