EV Depreciation 2023

maidhc

https://www.boards.ie/discussion/comment/121544849#Comment_121544849

In fairness it’s a fair response to EV evangelism. If your comments are even slightly directed to me you will note I have posted on and off here for the bones of two decades, mostly on motors issues.

the entire point is that not everything suits everyone. Right now I have a pure hybrid, a phev, a 20 year old landcruiser and a 75hp van that is driven by my employees in my driveway. They are all very different beasts, and the phev will cost 8k to move up 2x years next week (topic). My view is the phev is the best compromise for now and is holding its value well as a result.

Mind you the reference to cordless drills is flawed, they haven’t really moved at all since 2016, indeed I replaced my Dewalt dcd996 from that vintage last week with the same model.

Gumbo

https://www.boards.ie/discussion/comment/121545189#Comment_121545189

Was not, in any way referencing yourself.

The funny thing is that some of still have ICE too, including diesels and petrols. You buy the right tool for the job and all that.

Im looking out into the garden at 2x 520d’s and a transit at the moment 😂

waterwelly

https://www.boards.ie/discussion/comment/121544849#Comment_121544849

Bit of a rant there.

This is a thread about EV depreciation.

It would be very unfair on a potential EV driver to only see biased "everything is rosy in the garden" inputs.

Gumbo

https://www.boards.ie/discussion/comment/121545384#Comment_121545384

I copied the format of your post. I guess you consider yours not to be a rant ?

Depreciation in cars should be a given to anybody considering buying a car. It’s basic economics.

Casati

https://www.boards.ie/discussion/comment/121545189#Comment_121545189

Is that 8k to move up 2 years in a 50k+ RAV4?

McCrack

Electric cars are very boring. They are bland and uninspiring and most are bought on finance by folks that can't afford them. There's far more interesting and enjoyable cars to drive that are not electric and can be picked up far cheaper than some new electric car on tick that everyone else has and paying loan interest too.

tommythecat

https://www.boards.ie/discussion/comment/121546244#Comment_121546244

Which ones have you driven that are bland and uninspiring?

Buddy Bubs

https://www.boards.ie/discussion/comment/121546244#Comment_121546244

Like what?

eastie17

Turning into a ridiculous circular thread and is now totally off topic.

I own an EV, bought it a year ago and am perfectly happy with it. I know the drawbacks and did my research before buying. There are pros and cons to both types of cars and I dunno why this has become such a “my choice is better than ur choice and I won’t stop until u admit mine is better” nonsense conversation.

now back to the topic, anyone got thoughts on the floor for EV depreciation? I know cars generally depreciate forever until they become classics or worthless but the annual percentage drop does seem to be greater than ICE at the moment

Tesla's R ****. /end thread

Gumbo

When the afterhours idiots find an active thread!

Gumbo

https://www.boards.ie/discussion/comment/121546318#Comment_121546318

50% after 3 years seems to be about right.

After that, continue along the curve.

Casati

https://www.boards.ie/discussion/comment/121544514#Comment_121544514

Just because govt is pushing EV’s it certainly doesn’t mean that not following means you are conservative or resisting change, it could be simply because EV’s are too flawed currently for most drivers to consider one. In 2008 our govt pushed us to diesels and sales doubled to 70% of the market. Those that stayed petrol because they saw diesel wouldn’t work for them

gammon199

https://www.boards.ie/discussion/comment/121546422#Comment_121546422

Whatever the government are pushing, do the opposite

Usually works out well in the end.

Gumbo

https://www.boards.ie/discussion/comment/121546445#Comment_121546445

I seen that quote on Tic Tok on stupid immigration videos.

gammon199

https://www.boards.ie/discussion/comment/121546472#Comment_121546472

Saw

PaoloGotti

Any car both on finance was not affordable. Unless you can pay cash for a car twice over tomorrow then you can’t afford it, by my strict definition.

Edit: that was intended as a reply to specific post that didn’t work.

gammon199

https://www.boards.ie/discussion/comment/121546511#Comment_121546511

I would agree with that too

Shouldn't be spending any more than 25% of your yearly salary on car

Earn 40k, get a 10k car

Earn 100k get a 25k car

Earn 250k, get a nice 50k Tesla

Seeing people in cars worth a years salary is embarrassing

PaoloGotti

I thought I was strict!

I set it at 50% of annual take home salary. But I have no other debt.

mun1

Id say the smaller battery EV’s are gong to take a bath as PCP deals end and all the negative press (and rightly so) about public charging kick in. You can see it already with the Leaf. First thing anyone mentions is the 150km real winter range on the motorway, not the spec, heated seats, cruise control etc.

gammon199

https://www.boards.ie/discussion/comment/121546542#Comment_121546542

That 25% is actually high, 20% used to be the rule of thumb before easy credit.

Car was just A to B for many, housing, education, marital, family, holidays usually came first and still does for me.

FaaF

https://www.boards.ie/discussion/comment/121546526#Comment_121546526

Probably one of the most ridiculous posts I've seen in a while.

If you love cars and have the cash, buy whatever you want. Screw any calculations based on salary.

Besides, working off a flat 25% is madness, even if you were that way inclined. It's all about savings and disposable income.

Why should someone who inherited their forever home force themselves to spend the same maximum percentage of income versus someone who's saving hard for a deposit for their first home whilst spending 30%+ of their salary in rent?

mun1

https://www.boards.ie/discussion/comment/121546586#Comment_121546586

I bought a Tesla MY LR , which cost about 55% of my take home pay. Luckily, I had a trade in which meant i only paid out 8% of my take home pay. Don’t have any other debts, and the tesla is the best car i ever had, from a driving, economical and technology POV.

on the question of EV depreciation, there was a supply/demand inequality this time last year for all cars ( incEV’s) due to covid/Ukraine, which meant people were overpaying for the car. The market is now only correcting itself. (I got a ridiculously good price for my Audi Q4 when selling it in March 23, i know someone who tried to sell their Q4 in September 23 and were offfered @15k less for the same car)

while EV’s have always been sold at a higher price than ICE versions, this is likely coming to an end, but not in a good way.

If you paid for a new EV in 2021/2022, you will probably take a higher depreciation, as all makes are bringing down EV costs to a more sustainable price for them.

a game changer would be if a 1,000km battery makes an entrance in 2024

PaoloGotti

https://www.boards.ie/discussion/comment/121546599#Comment_121546599

Not to nit pick as I think you’re reasoning is solid - the trade in can’t be taken out of the sums unless you were gifted it.

PaoloGotti

https://www.boards.ie/discussion/comment/121546598#Comment_121546598

Ever heard of a rule of thumb?

mun1

https://www.boards.ie/discussion/comment/121546632#Comment_121546632

Take your point, The only thing that ever matters to me is the Cost of Change. Don’t care what the new cars costs, what they are giving me as trade in etc. sometimes i pay a lot, sometimes a little.

i change about every 3 years , to mostly new car, and sometimes i have to pay more than i might have wanted. At this stage in my life i am privileged to be able to afford what i want, when i want it. What I paid 3 years previous is irrelevant to me.

Don't get me wrong, i alway try to get good value, but i like fast cars . (At the moment, My fingers are twitching if anyone mentions a Porsche Taycan :) )

PaoloGotti

https://www.boards.ie/discussion/comment/121546671#Comment_121546671

Fair play. I wouldn’t be able to do it. My brain would look at the depreciation (the actual cost of changing) and see €24-30k every three years as a hard sell. But I’m a mean cnut.

maidhc

https://www.boards.ie/discussion/comment/121545915#Comment_121545915

Correct, although the end cost ended being slightly more as I went for the gr sport spec.

gammon199

https://www.boards.ie/discussion/comment/121546598#Comment_121546598

Why is it ridiculous?

Its for normal people, not silver spoon privileged people, car enthusiasts or keeping up with joneses who buy things they don’t need to impress people they don’t like. If you can afford it and it gives you pleasure to flaunt your things over others, well have at it and good luck.

Having things doesn’t make you happy; happiness comes from within.

Cars are A to B for most normal people

sk8board

I think the original conclusions of this thread was that

1. there’s now no supply issue with new EV deliveries
2. in the 2nd hand market there is less demand than expected
3. a lot of 3yr PCPs are ending, so the 2nd hand supply of EVs will continue to increase.
4. EV owners either drop prices significantly, or hold on to their cars

In the current market, prices will drop until there’s equilibrium in supply and demand.

The price that will sell a car is the level the market sits, at any point - be it a high price or a low price.