Mirroring industry, used Teslas surging at Vroom

CARY, N.C. -

Looking at new data from Vroom on the top 10 most purchased used electric vehicles across the country, one trend in particular stands out.

Three of the top 10 vehicles are Teslas.

Why is that?

In an interview with Auto Remarketing, Vroom chief executive officer Paul Hennessy provided a concise reason.

“It’s just an outstanding vehicle, and consumers know it,” said Hennessy of Vroom, which is an e-commerce platform for buying and selling used vehicles.

According to the Vroom data, the Nissan Leaf is the most purchased used electric vehicle across the industry, with an average price of $13,541. The BMW i3 comes in at No. 2 with a $21,000 average price.

But placing at Nos. 3, 5, and 8 in the top 10 are the Tesla Model S, the Tesla Model 3, and the Tesla Model X, respectively.

Vroom’s business mirrored the overall industry numbers. Two-thirds of the electric vehicles that Vroom sold last year were Teslas.

Hennessy said electric vehicles represented about 2% of the overall industry vehicle sales in 2020, and he said the company expects that number to grow to 2.5% market share this year.

Vroom expects to match that trend, and then some.

“Already in Q1 of 2021, we’re not growing at 25%, but we’re really growing at 100%,” he said regarding used EVs. “So now what we’re seeing is 4% share in Q1.”

Industry-wide, the market for electric vehicles is growing.

“But they’re surging at Vroom,” Hennessy said, adding that Tesla performs so well in Vroom’s data “because they’ve just done an outstanding job, and customers want them and love them.”

Still a West Coast phenomenon

Vroom’s study also highlighted the top 10 most purchased used hybrid vehicles industry-wide, and the top three were the Toyota Prius, the Ford Fusion and the Toyota Camry.

But despite all the growth in hybrids and electric vehicles, the West Coast is still the most popular destination for people who are buying those cars.

San Francisco, Los Angeles, Seattle, San Diego, and Santa Barbara are among the top 10 locations for electric vehicles, and hybrids are nearly an exact replica of that trend, according to the Vroom data.

For used electric vehicles, no East Coast states are in the top 10.

“It’s a West Coast and moving-East kind of phenomenon,” Hennessy said.

Sensitivity to fuel efficiency and passion about climate change issues in California are reasons for that, Hennessy said. Some of the major companies, such as Tesla, Rivian, Lucid Motors and Faraday Future have California roots.

“Teslas are sold around the globe, and of course they’re sold on the East Coast, but I still think when you think about top 10 locations where they’re sold, they haven’t really migrated all that far from the West Coast,” Hennessy said.

Additional insights of Vroom’s new data: The most popular used EV body type is subcompact. Regarding the most purchased used hybrid vehicles, Toyota placed five vehicles in the top 10. The Prius came out on top, with an average price of $12,400. Other Toyotas in the top 10 were the Camry, the RAV4, the Prius c and the Highlander.

Vroom data mirrors industry as a whole

Overall, Vroom had 34,488 ecommerce sales last year, beating the year-ago figure by 82%. Hennessy emphasized how Vroom’s business is a microcosm of the broader car industry, and he also talked about how the used-car space tends to follow the new-car space by a couple years or so.

“We’re always tracking the data of our industry, and it’s no surprise that fuel efficiency that started a while ago in hybrids and is now evolving to pure electric plays, that’s becoming a growing segment of the used car space,” he said. “So we’re watching the trends in hybrid and electric, and it’s becoming a growing percentage of our business. We’re a data-driven company, so understanding the data, watching the data, and preparing for the data so we can better serve our customers, its kind of in our DNA.”

Hennessy also said, “So this was a natural piece of work that we would do, to make sure that we have what customers are looking for, so that’s great for them and good for our company.”

Top EVs: Lower price a factor

Some of the lower-priced EVs such as the Nissan Leaf and Chevrolet Bolt are attracting strong interest because of their low price, Hennessy said.

“I think what you’ll find, as with many things in life, price point drives interest,” Hennessy said.

The lower-priced EVs allow customers to get into an electric vehicle without paying approximately $50,000 for a Tesla S or more than $70,000 for a Tesla X.

Hennessy said part of the Vroom strategy is to offer a wide spectrum of what customers can afford.

“And in doing so, we’re satisfying their needs, based on what they can afford,” Hennessy said. “If they’re looking for luxury EVs, we’ve got them in Teslas. If they’re looking for affordable, entry level, we’ve got those, too.”

But the higher-priced EVs also play a role in Vroom’s data. Hennessy also discussed trade-ins, noting that of the electric vehicles that Vroom buys or trades from consumers, more than half are Teslas.

In December, Vroom released a data recap of the top car buying and selling trends for 2020, saying that Teslas sold to Vroom by consumers tripled since 2019 and Tesla inventory was 10 times higher.

What is driving all the interest in used Teslas? The company has simply done well in producing a strong vehicle, Hennessy said.

“I think they built a super brand,” he said. “I think they’re outstanding, high-quality cars, and when you get them from Vroom, they know they’re getting a high-quality, expertly reconditioned car that will last a long time.”

More details can be found below, with data courtesy of Vroom.

Top 10 most purchased used EVs across the industry: 

Most popular used EV sales by body type:

Drivers in these metropolitan areas purchase the most used EVs:

Hybrids

Top 10 most purchased used hybrid vehicles across the industry:

Drivers in these metropolitan areas purchase the most used hybrid vehicles: