I Just Checked Carvana, Their 5 Lowest-Mileage Vehicles Are All EVs, But Even at Sub-$40K Prices, They're Not Flying Off the Lot

It’s happening. The used electric vehicle market is circling the drain, and the numbers paint a grim picture. EVs, once the golden children of the green revolution, are plummeting in resale value, their depreciation curves resembling an Olympic ski jump. Tesla, Rivian, and Lucid are leading the charge into the abyss, but the carnage isn’t limited to boutique brands. 

Why Chevy, Ford & Cadillac Models Are Plummeting in Value

Even mainstream players like Chevrolet, Ford, and Cadillac are watching their older EVs become the automotive equivalent of toxic waste, expensive to maintain, difficult to repair, and increasingly unwanted on the used market.

 Innovation, Price Cuts & Battery Costs

• The swift pace of innovation in EV technology can render older models less desirable, leading to accelerated depreciation. 
• Aggressive price reductions by manufacturers, such as Tesla, have contributed to significant declines in used EV values. 
• Concerns about battery degradation and the high costs associated with battery replacement can deter potential buyers, further decreasing the resale value of used EVs.

And then there’s Carvana, the tech-driven, touch-free used car retailer that once promised to upend the traditional dealership model. Instead, it now finds itself drowning in EV trade-ins that no one wants. This past Friday, the five lowest-mileage vehicles on Carvana’s site were all EVs. A Cybertruck (naturally), a Silverado EV, a Chevy Bolt, an Equinox EV, and, get this, the only one that even got a bid was a Cadillac Lyriq that barely scraped past $40,000. The rest….?

According to an admin in the Facebook Group “Mileage Impossible”,  

"Over three-quarters of the EV trade-ins were Teslas, and the majority couldn't attract a single bid.

I'm calling this The Elon Effect. Alienate your core audience of car buyers and your ability to get repeat customers plummets into a Jaguar-like oblivion."

The reasons for this collapse are obvious. EVs are saddled with a one-two punch of range degradation and buyer hesitation. Unlike a gasoline car, where 40,000 miles means nothing to a well-maintained V8, a used EV is a giant question mark. How much range has it lost? Is the battery still healthy? How soon before the owner is staring down a $20,000 battery replacement bill? These are existential concerns that would make even the most environmentally conscious buyer think twice.

How Tesla, Rivian, and Lucid Owners Face Long Waits and High Costs

And that’s assuming you can even find parts. Without a dealership network, Rivian and Lucid owners are discovering what it means to truly be on their own. Tesla’s direct-to-consumer model means that if you need a new battery pack, door handle, or touchscreen, you’re at the mercy of Tesla’s service department, which might not have parts in stock for weeks, if not months.

Rivian? Good luck. Lucid? Even worse. When something breaks—and it will—you’re not rolling into your local independent mechanic for a quick fix. You’re waiting. And paying.

Title Delays, Legal Challenges & Financial Irregularities

• Customers have reported significant delays in receiving vehicle titles and registration documents, leading to legal actions and settlements in states like Connecticut. 
• The company has faced suspensions and legal challenges in multiple states, including Illinois and Michigan, due to alleged violations such as failing to transfer titles promptly and improper issuance of temporary registrations. 
• Short-selling firm Hindenburg Research accused Carvana of accounting manipulation and insider trading, claiming the company engaged in questionable loan sales and inflated income figures.

Meanwhile, Carvana, the poster child for the no-haggle, no-hassle future of used car sales, is finding out the hard way that EVs are financial quicksand.

The company has already been slapped with license revocations in multiple states due to botched paperwork, delayed registrations, and shady sales practices. Now, they’re stuck with Teslas, Bolts, and Mach-Es that nobody wants, and even their algorithmic pricing wizardry isn’t enough to make these cars move. Why? Because even if you manage to buy a used EV from Carvana, you’re still staring down the barrel of potential battery failure, range loss, and parts scarcity.

How Tesla Trade-In Trends Are Crippling Resale Values

Then there’s The Elon Effect according to the original poster. Tesla trade-ins made up over three-quarters of all EV trade-ins last week, and the vast majority didn’t even receive a single bid. The reason is simple, when you spend years turning your brand into a personality cult and then alienate half your customer base, don’t be shocked when resale values collapse. Early Tesla adopters, the ones who once proselytized about the future of electric cars, are now dumping their vehicles in droves. And nobody wants to buy them.

The bottom line? The used EV market is a full-scale disaster, and it’s only getting worse. Buyers don’t want the risk, the maintenance headaches, or the looming specter of battery failure. The dream of electric vehicles revolutionizing the industry is still alive, but the reality is a resale market in absolute free fall—one that’s becoming harder to ignore with each passing day.

Noah Washington is an automotive journalist based in Atlanta, Georgia. He enjoys covering the latest news in the automotive industry and conducting reviews on the latest cars. He has been in the automotive industry since 15 years old and has been featured in prominent automotive news sites. You can reach him on X and LinkedIn for tips and to follow his automotive coverage.