Prediction: Gasoline car prices will fall sharply

Following the high interest in Tesla’s new budget-friendler Tesla model 3, I cannot not think that I don’t want to buy another gasoline car. Especially not a new one. Not only because electric cars are cleaner and require less maintenance but also from a financial standpoint.

Tesla model 3

As production of electric cars begins to ramp up at Tesla and with other car manufacturers probably joining them in the race for market share, I expect the prices of gasoline cars, especially those that are new and relatively expensive today to sharply drop, as more and more people start to prefer and wait for electric cars. Basically, I believe that resale value of new cars will be quite low in a few years.

The only exceptions that I can see are specialty cars that might take longer to move to electric, like minivans, pick-up trucks and other commercial cars. But the majority of day-to-day cars will probably be dominated by electric ones in 5 years.