I’ve been browsing for a newer used EV and thought a slightly used Ioniq 5 might be a solid choice. But I’m seeing an unusually high number of 2023 and 2024 models on the market. By comparison, there are only a handful of used 2023/2024 Tesla Model 3s. Does anyone know why so many people are trading in these newer Ioniq 5s? Are there issues with the car, or is there something else going on?
There’s been a lot of talk about lease returns recently. In some areas, it’s becoming common to see a spike in used EVs like the Ioniq 5 due to these returns.
Used electric car deals are coming as lease returns expected to surge
11/7/2024
It seems like we’re gearing up for some great deals on used EVs as lease returns are expected to surge, especially starting in 2026. EV leasing grew a lot in 2023 due to tax credits, with nearly half of EV sales going to leases. This trend continued into 2024, meaning we might see even more returns hit the market soon.
@Howard
Interesting point! Hyundai’s site shows they have 2-year lease deals for the Ioniq 5. Maybe that’s contributing to the influx if some 2023 models are already coming off their leases.
kwame said:
@Howard
Interesting point! Hyundai’s site shows they have 2-year lease deals for the Ioniq 5. Maybe that’s contributing to the influx if some 2023 models are already coming off their leases.
Exactly. Hyundai and other companies seem to be using short leases to build a used EV market faster. They get to resell the car as certified pre-owned, which benefits them financially and puts more EVs on the road, encouraging infrastructure growth.
@martin
Another reason is that leasing was one of the only ways to get the tax credit for many of these models. People likely chose the cheaper lease for that reason. And in some cases, the used EV credit might also apply if the price and buyer qualifications line up.
@sorphia
You’re probably right about the tax credit on leases. Ioniq 5s and 6s have high MSRPs, so it’s unlikely they’d qualify for the used EV credit later. When I looked, the base Ioniq 5 was around $48k, and popular trims even higher. Hyundai took the credit on the lease instead of the buyer because of fleet rules, but after a couple of years, I doubt they’d sell for under $25k just to help a new buyer qualify.
@Howard
In the UK, we saw a similar effect recently. A big rebate scheme years ago meant that lease returns hit the market this year, and secondhand prices dropped significantly.
Not seeing that in my area (California) where used Teslas are everywhere. I was actually searching for a used Ioniq 5 but they got snatched up fast, especially at reasonable prices. Some folks can return their lease early if the dealer couldn’t do repairs within a certain timeframe, so that could be one reason they’re back on the market.
@Ronald
I went through something similar with a Ford Lightning. The dealer was slow on a battery module replacement, so the previous owner lemon-lawed it, and I bought it at a discount after they fully replaced the battery. For me, it’s like having a brand-new truck, but yeah, sometimes these buybacks can be great deals if you’re not worried about resale value.
@Ronald
What price range do you consider reasonable?
abidemi said:
@Ronald
What price range do you consider reasonable?
A few months ago, I was seeing 2022-23 RWD SEL models priced in the high twenties to low thirties, depending on miles. Most other listings were asking high 30s, so it was a hunt to find those cheaper options.
@Ronald
I’ve seen an SE AWD with low miles listed just under $30k in my area.
@Ronald
I snagged a good deal on a 2020 Tesla Model 3 around here because the market is saturated with used Teslas. I love the look of the Ioniq 5, but couldn’t find one in my budget.
Poor financial planning? Or maybe the short lease terms? Still driving my 2022 Ioniq 5 and plan to keep it until it’s done for.
Mark said:
Poor financial planning? Or maybe the short lease terms? Still driving my 2022 Ioniq 5 and plan to keep it until it’s done for.
Just got a 2022 RWD LR model last week, and I’m loving it! I think I’ll be driving this one until it’s done too.
Mark said:
Poor financial planning? Or maybe the short lease terms? Still driving my 2022 Ioniq 5 and plan to keep it until it’s done for.
Same here!
Mark said:
Poor financial planning? Or maybe the short lease terms? Still driving my 2022 Ioniq 5 and plan to keep it until it’s done for.
Same here!
+1
Mark said:
Poor financial planning? Or maybe the short lease terms? Still driving my 2022 Ioniq 5 and plan to keep it until it’s done for.
We have a 2023 model and love it! The fast charging is great for road trips, and the warranty coverage gives peace of mind. I’d definitely get another.
Mark said:
Poor financial planning? Or maybe the short lease terms? Still driving my 2022 Ioniq 5 and plan to keep it until it’s done for.
For some buyers, it’s not worth taking a big hit on resale, so they keep the Ioniq 5 until it’s done. Also, it’s one of the better models out there for its performance and charging speeds.
@Randy
Are there any other cars from that time period that were much worse?