Should EV Flipping Be Illegal?

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Whenever a new car comes to market, there’s always a group of people eager to capitalize on the car’s initial limited supply by securing an early example, then turning around and selling it on as a nearly-new used car with a massive markup over MSRP.

While it’s a practice that’s not exclusive to the green car market, cars purchased and sold in the electric vehicle world in this way also come with an added bonus for the car flipper: the ability to claim whatever purchase incentives exist for electric vehicles, register the vehicle in their name, and then sell it on, pocketing the EV purchase incentive in the process.

And it’s something we’re seeing a lot of at the moment with the Tesla Model 3. Some early reservation holders (it’s a small number, but they’re there nonetheless) are picking up their brand-new Model 3s and then immediately selling them on for a massive profit, pocketing the federal tax incentive and effectively capitalizing on others’ eagerness to skip the queues by paying a premium.

Buying a ‘nearly’ new car at overinflated prices isn’t something that’s particularly heinous. After all, if there’s a buyer and a seller willing to do business, business will be done.

But is it fair (and should it be legal) for people to buy a brand-new electric car, claim whatever incentives exist, and then sell it on for a profit?

Watch the video above to find out more.

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  • Arthur Burnside

    This is really dumb – the buyers of those Model 3 cars know exactly what they cost when bought from Tesla and also are very much aware of the govt welfare $7500 tax credit they get. No one can honestly claim that these buyers people are getting banboozled. And the price the sellers are getting is not anywhere near what they advertise them for, typically. It’s the buyer’s money and they cam spend it anyway they choose. If that means paying a premium for a car that they won’t be able to buy from the factor for who knows when, that’s their business and Nikki should find something of significance to write about – rather than trying to be a phony hero standing up for , exactly who?

  • Mark

    well as long at I can still buy i from Tesla, I don’t se a problem
    this is that what every other car manufacturer experience with there dealers, they buy all there cars and resell them with a profit
    what is stopping normal car dealer’s from just buying all the cars that Tesla can produce and resell them
    my guess that they don’t do it is that they can’t add any extra value to the end user, to justify the price difference