Another government central planning fail. The solution will no doubt be throw more of your money at it.
By Tyler Durden
The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots,” the dealers said
Data from Bankrate indicates that interest rates for new auto loans with a 60-month term have reached their highest point since the Dot Com bust era. Additionally, the soaring prices of new electric vehicles pose a significant affordability challenge for the average working-class American. Beyond affordability issues, consumer interest in EVs is also waning. This sentiment is echoed by 3,900 auto dealers who have written to President Biden, urging his administration to reconsider the pace of EV mandates, citing a severe decline in demand for these vehicles.
”Currently, there are many excellent battery electric vehicles available for consumers to purchase. These vehicles are ideal for many people, and we believe their appeal will grow over time. The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots,” the dealers said.
They said 2022 was a year of “hope and hype about EVs” but has morphed into a bust cycle as “supply of unsold BEVs is surging, as they are not selling nearly as fast as they are arriving at our dealerships — even with deep price cuts, manufacturer incentives, and generous government incentives.”
They warned: “Already, electric vehicles are stacking up on our lots which is our best indicator of customer demand in the marketplace.”
According to Bankrate data, this may be because new auto loans with 60-month terms have soared from around 3.5% to 7.78% in a very short period – we call this an interest rate shock. Current rates are at levels not seen since the second half of 2001.
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