EV depreciation

[torque2me]

Hi,

Just read this in "This is Money". Interesting but I haven't found what depreciation is for each model in year 1, year 2 ect., ect. It may be similar to ICE vehicles but I'm not investigating that . The article states that dealers are more reluctant to take in EV models in p/e at the then time (?). Dunno if this has changed.

BIGGEST USED EV PRICE FALLERS OF 2023 (30 to 11)
30. MG ZS EV (2019-present) - down 31.3%/£8,056

=28. Audi e-tron GT (2021-present) - down 32.4%/£30,529

=28. Audi Q4 e-tron (2021-present) - down 32.4%/£16,683

27. MG5 EV (2020-present) - down 34%/£8,125

26. BMW i3 (2013-22) - down 34.3%/£10,028

25. Kia e-Niro (2018-23) - down 34.5%/£10,888

24. Hyundai Ioniq 5 (2021-present) - down 34.7%/£14,845

23. Honda-e (2020-present) - down 35%/£9,600

22. Hyundai Ioniq (2019-23) - down 35.9%/£8,650

21. Polestar 2 (2019-present) - down 36.1%/£15,995

=19. Fiat 500 Electric (2020-present) - down 36.1%/£8,150

=19. Audi e-tron Sportback (2019-23) - down 36.1%/£20,792

17. Volkswagen ID.3 (2020-present) - down 36.4%/£12,409

16. DS3 Crossback E-Tense (2019-pres) - down 37%/£9,175

15. Peugeot e-208 (2019-present) - down 37.1%/£9,295

14. Hyundai Kona (2018-present) - down 38%/£11,275

=11. Mini Electric (2019-23) - down 38.4%/£10,842

=11. Citroen e-C4 (2020-present) - down 38.4%/£10,013

=11. Peugeot e-2008 (2019-23) - down 38.4%/£10,720

=10. Lexus UX (2020-present) - down 38.7%/£13,463

=10. Renault Zoe (2019-present) - down 39%

9. Vauxhall Corsa-e (2019-present) - down 39.3%

8. Mazda MX-30 (2020-present) - down 40%

7. Nissan Leaf (2017-present) - down 40.2%

6. Jaguar I-Pace (2018-present) - down 40.4%

5. Vauxhall Mokka-e (2020-present) - down 40.8%

=3. Mercedes-Benz EQA (2021-present) - down 41.2%

=3. Mercedes-Benz EQC (2019-present) - down 41.2%

2. Volkswagen e-Up (2013-2022) - down 42.7%

1. Seat Mii Electric (2019-2022) - down 45.6%


The article author provides confusing information. Take the Leaf as an example:-

Average used price start of 2023: £24,775

Average used price end of 2023: £14,861

2023 price fall: £9,914

But the used value of a Leaf has fallen dramatically than most other EVs. At the beginning of 2023, a year-old model with average mileage would have cost £24,775 but fast-forward to December and the used prices for a 12-month-old example have slipped to just £14,861 - deflation of 40.2 per cent, or almost £10,000.

So, does that mean the car is one or two years old? I say this as the author is saying the car is 12 months old at December 2022/January 2023 and the depreciated price is based on a vehicle 12 months old at the end of 2023 (December?). Is it just me that is somewhat confused?

Of course these figures and stats may be an aberation an I'm not believing that it is for always. However, just shows the consumer is forever being shafted.

Kev
https://www.thisismoney.co.uk/money/...half-much.html

[bl52krz]

Your last comment........... how true. The manufacturers are screwing those who buy ‘new’ vehicles as they have always done. My motto has always been...... to-never buy a new car. I would love an Aston Martin, but even if I won millions on the lottery, I would not buy new. Waste of money, and an’ I am better than you’ jibe towards us second hand lot. Long may we rein.

[MSS]

The dynamic associated with EV depreciation applies to all early adoption of technology and of course luxury car depreciation in general.

Anyone interested should take a look at price dynamics of early digital cameras, OLED TV etc. This is nothing new.

Also, as someone who does indulge in early adoption of some technologies, and comes from a family that is on its second high-end EV, I have to say that none of us regret any of our buying decisions.

Do we feel that we are in some way better than the scrap-value banger brigade? Yes, all the time, but only because my 75 is worth a little more in scrap than many others of a similar age because of how it has been looked after and my other scrap value car, the Omega estate, is now over 20 years of age.

Anyone wanting to get a feeling for how EV owners appreciate their purchases should join an EV forum!

[torque2me]

Originally Posted by bl52krz

Your last comment........... how true. The manufacturers are screwing those who buy ‘new’ vehicles as they have always done. My motto has always been...... to-never buy a new car. I would love an Aston Martin, but even if I won millions on the lottery, I would not buy new. Waste of money, and an’ I am better than you’ jibe towards us second hand lot. Long may we rein.

I might be tempted into the new car market if the win was a number of millions. So easy to burn through less than £5mil, what with the price of yachts and private jets and 64 bedroom residences
Kev

[Lancpudn]

The used car market is set for a huge change in the upcoming years, This report by CoxAutomotive is an interesting read of the changes ahead. https://www.fleetnews.co.uk/news/fue...in-three-years

[Matt_75]

Originally Posted by Lancpudn

The used car market is set for a huge change in the upcoming years, This report by CoxAutomotive is an interesting read of the changes ahead. https://www.fleetnews.co.uk/news/fue...in-three-years

The article mentions the "transition to zero-emission motoring". Personally I think this is a misleading term. CO2 from inital manufacture, tyre wear particles, brake dust (albeit BEVs produce less due to regenerative braking), end of life disposal etc. are all forms of emissions. "Zero tailpipe emissions" would be a more accurate term. I don't think that subtle but important difference is widely recognised.

[SteveThackery]

Originally Posted by Matt_75

The article mentions the "transition to zero-emission motoring". Personally I think this is a misleading term. CO2 from inital manufacture, tyre wear particles, brake dust (albeit BEVs produce less due to regenerative braking), end of life disposal etc. are all forms of emissions. "Zero tailpipe emissions" would be a more accurate term. I don't think that subtle but important difference is widely recognised.

I totally agree. And we should add to that list the CO2 produced by generating the electricity. CO2-free renewables only account for less than half of electricity produced.

[ceedy]

Looks like hertz rental are having 2nd thoughts after buying rather too many

[daveo138]

Originally Posted by ceedy

Looks like hertz rental are having 2nd thoughts after buying rather too many

I had a hire car while my leased company car was in for a service. The hire company asked me if I would like an EV. I said no, as there was no way I would be charging it at home and paying for it, when I have a fuel card.

[wraymond]

Such a huge change to long established practices and theoretical improvements in one form or another needs careful management and strategy.

In this case the benefits are glossy guesswork, and there is no proof whatsoever that EV’s entirely are necessary from a survival point of view. So, a doomsday panic is induced. Net Zero?

In the final analysis the assumptions of Armageddon are not proven. The difference in output of dangerous gases in the manufacture of cars from the old to the EV's is exaggerated and the costs are ridiculous.

Major factors in the production of the vehicles are minimised and when there is a need to create a new religion, what better justification than the survival of the human race? If ever there was an industry built on false dreams....

We just might be about to reach the point where the hype gets replaced by hope.