How To Beat EV Depreciation (Plus Why It Happens)
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- เผยแพร่เมื่อ 2 ส.ค. 2024
- Depreciation - in the automotive sense, how quickly a car loses value - is becoming pretty large in the electric vehicle world right now, with some models seeing their price on the used car market sitting at 60% of their new price after less than a year.
That's causing some people to argue that EVs are a poor financial decision, and that lowering prices is a sign that nobody wants to buy them.
But as we're about to explain, depreciation in the EV industry is so much more complicated than that.
Here's what it is, what affects it, and how you can insulate yourself from the worst effects of it.
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00:00 - Introduction
01:36 - Quick Financial Disclaimer
02:35 - Depreciation in cars isn't linear - nor is it easy to tie down
03:47 - Regional fluctuations can occur
04:20 - New models - and competing models - push the price down
05:51 - Oil and gas prices play a part too
06:10 - Poor reviews and sales can destory a vehicl'es value
07:18 - COVID - an historical anomoly for prices
09:07 - The drop in prices today of new EVs
10:28 - Changing technology pushes earlier obscelence
11:11 - How big is the depreciation?
11:57 - It's even affecting Tesla :(
12:17 - What depreciation means for YOU
14:53 - So, what can YOU do about it?
19:22 - Thanks, and Goodbye
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Presenter, Script, Audio: Nikki Gordon-Bloomfield
Camera, Editor, Colorist: M. Horton
Art and Animation: Erin Carlie
Producer: Nikki Gordon-Bloomfield
© Transport Evolved LLC, 2024
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Beat depreciation? Heck, I am going to use it to get a good deal on a used one.
Same here!
I've already been eyballing used R1ts...
That is a great point. People shouldn't forget that Teslas are good for 500,000 miles on the battery and 1 million miles on the motors. It's very difficult to mechanically total these cars, and they should be perceived like luggage-just hand them down in the family if you want a new one and keep them for 15 years or more.
@@jimfergusondev Not the early Teslas. Can't keep the coolant in the rotor cooling circuit on the Model S/X, even Tesla has finally given up on trying. And can you find a 1M mile example for a Tesla battery? Miles on vehicle, maybe, but not on either the battery nor the drivetrain, AFAIK.
Most people I know buy a car and drive it until the wheels fall off. Depreciation therefore isn’t even a consideration. Huh. Might just be the social strata I live in.
Right! 12-14 years for us! Suck all the value out of the thing while you save for the next one.
@@davidmccarthy6061 Better, buy used and drive til the wheels almost fall off, then sell while it still has some value as a vehicle. I never even buy collision insurance.
100% No one should be looking at a car as an investment at any level.. expect to lose most of its worth. Ive had my model y for 3 years now and it has been flawless for me and I expect to keep it as long as I possibly can to get my worth from it. If youre someone who gets a new car every couple/few years then youve earned the right to lose the tons of money you are.
That's a illogical way of thinking. Depreciation is a major consideration. The pace of EV depreciation might as well offset or exceed all of its fuel savings, compared to a more residual valued car like a Toyota.
@@i6power30Depreciacion exists ONLY if you intend to eventually sell your car. If you are buying it with intend to keep it until it dies (and you avoid being crashed), then depreciation doesn't exist at all…
@@FalkonNightsdale My life is worth more than that. I'd like a new car every 5 years or so because the safety technology is constantly improving, I don't want to drive an car with outdated safety technology. Also my time and money when car is getting old, you risk spending lots of time and money repairing and replacing parts - that will add to the cost of ownership as well. Yeah you may ignore depreciation, but you are spending on repairs and pay with your time and inconviniences.
Therefore residual value is a major consideration. For instance, I'll probably buy a Toyota Prius Prime instead of Model 3 considering Toyota will likely to have better resale value than Tesla after 5 years, probably $5000 or more. Given that I hardly ever go out of town, the fuel savings is negaligible, I drive on EV mode in town anyway.
@@i6power30 There was close to zero improvement in safety in last ~10 years and even before differences in crashtest were marginal…
But it's OK to believe in marketing BS - someone else is going to get your "old" car for cheap🤷🏽♂️
@@FalkonNightsdale active safety is much improved
I just got into a 2013 Tesla Model S P85 with only 18k miles on it for 24k out the door. It's my first EV replacing a 2013 KIA Soul that finally died after 258k miles. I have been a fan of EV's for a long time and I am loving this car so far.
Please, search "Tesla LDU coolant delete" and make a modest investment in your investment, before you face another $6-20k charge.
And have that speed sensor pulled and inspected for the Blue Drops of Death every few months, until you do the coolant delete.
Got 25k or more in the bank for a new battery dippy?
@@PaulLorenzini-ny2yw The battery has a minimum 8-year/100,000-mile warranty. There's less than a 1% chance of EVs needing a battery replacement, with many clocking hundreds of thousands of miles on original parts. th-cam.com/video/2HlyQy9WRlc/w-d-xo.html
@@PaulLorenzini-ny2ywthe battery is going to last longer than many of the other components. I had a 2015 MS70D which were much more reliable than the earlier versions and I had 108k miles when it was totaled in an accident, but the battery was still fine and it will probably reappear in another car. My car was totaled because of difficulties finding replacement parts for the radiator and brackets along with trim parts since the car has had two refreshes since it was built.
On the 2013 I’m sure most or all of the problem parts have already been replaced, but being an expensive car, the door handles can be $1000 and the center screen can be $2500. The high volume Models 3, Y don’t have the expenses like the S and X and it’s way easier to get parts
@@kenmcclow8963 Cool story.......nope.
All excellent information. I really hate all the articles about EVs costing more to own and operate that wait until paragraph three past the third insert ad to disclose that it's only true if you include depreciation. Depreciation used to be only relevant as a tax write off. No one expected to be able to flip cars like they have been in the last few years, and honestly the financialization of cars is exactly as bad for the car market as the financialization of houses is for the housing market.
Also another way is to buy a two year old model with low miles. Not a new car but can save a terrible amount of money.
And you get most of the latest features if you find a good value of a top trim model.
Every car is used the week after you buy it.
The only issue there is that the people who bought new 2 years ago, dramatically overpaid compared to today's models. When I bought my lightning a couple months ago, I was trying to buy used, but all those people still thought their truck was worth more than the current new ones! When I pointed out that their pricing was out to lunch, the universal answer was that they still owed more on the vehicle than they were asking for, and couldn't afford to go any lower. Eventually the choice was new or used at the same price, so I went new.
But generally yes, I do agree with you, a 1 to 3 year-old vehicle is usually the sweet spot where you miss the absolute worst deppreciation.
When surfing Tesla's used cars check out the discount for ones with FSD
EVs' bigger depreciation is normal because the technology is evolving very rapidly (better autonomy, better charging speed, better security, better features, ...).
My way to deal with depreciation ... I keep my vehicles 10+ years.
Until I bought my last car, my auto plan had been to buy older cars from private individuals, having them inspected by my mechanic, and planning on fixing a bunch of little things. It’s been pleasant to have none of that for the last year.
2014 leaf here in Maine. 85 miles on the guess-o-meter every morning. We are totally satisfied. Not selling.
Not gonna depreciate much any more.
@@jamesvandamme7786 They have actually gone up in value the past few years.
When it comes to EVs, it seems that everything is bad news. Price goes up: EVs are too expensive and nobody can afford them, Price goes down: Used EVS quickly lose their value and you'll regret investing in one.. Fortunately, I am out of this game. At my age I figure I've purchased my last car (Tesla YLR). I didn't wait for prices to come down or for rebates to be passed because I valued the extra years I would have to enjoy driving it rather than saving a few dollars and lose that enjoyment. I don't check the depreciation (or value retention) because a car is not an investment. It's valuable to me right now.
Bad news ? They are because people beleived the marketing scumbags and Felon Musk ! Anyone with common sense knew it was non sense ! Too bad bu "commn sense" is not very common in fact !
So what I heard was that decent used EVs may be a bit less expensive now.
The biggest way to avoid depreciation, is to hold on to your car as long as possible. Yes the longer you have it the more it depreciates, but as you pointed out with your bolt, there gets to be a point where there's not much more depreciation happening. The worst deppreciation is always in the first few years. So instead of trading your car every 3 years, where you're guaranteed to get the worst part of the depreciation, keep the car for 10 instead. Also, if you can find a car that's 1 to 3 years old instead of brand new, you can let someone else take the initial depreciation hit!
If you have access to a garage, park it inside! I have a 2005 Subaru Outback that looks and feels like new because it was garaged its whole life so the outside and inside is in very good shape.
Agree. Furthermore, parking inside means you can keep your charging equipment inside too, so would-be cable thieves would have to break into your garage to be able to steal from you.
I think the concern over EV depreciation is rather elitest. My wife and I just bought a maxed 2022 iX 50, for just under $64K. Our iX cost over $118K, when new, and out of our price range. Our other EV is a 2022 Polestar 2, which we are leasing. Upon the end of the Polestar 2 lease, we are buying a 2023 Audi eTron GT, since that car's resale value will have dropped from $120K to less than $65K.
It is a fool's errand to buy a new EV, due to the vast number of EV's which are leased. Buy a used EV, after 2 years or when the max depreciation hit has taken place.
I got hit with depreciation pretty hard. In January of 2021, the head gasket on my Prius blew, and to fix it was more money than I had at the time, so I tried to find the cheapest decent EV I could at the time, which was a 2017 Nissan Leaf. And it was $19k USD out the door...
It's in EXCELLENT condition & right now it's worth about $6k or so lol. But, I did get the gap insurance so hilariously the car is actually worth more to me if somebody smashes into it in a parking lot, than it is taking me to work roflmao.
Many people “lose” those in lakes…
I am only at the 4 minute mark...but barring insurance claims, depreciation is a non factor, or should be. Cars are bought to be driven, not resold. This fallacy of needing a new car every few years is just a symptom of our broken society. Planning on selling a depreciating asset is a poor financial choice.
exactly
Wrong!
@@BrunoHeggli-zp3nl I guess it's indeed wrong for someone stealing cars to resell them.
@@BrunoHeggli-zp3nl wow Bruno, that is insightful. Can you construct a coherent thought, and say why it is wrong?
@@chrisbailey5055 No I cant!You have to pay me to teach you!
As always, thank you for your insight. I bought a new EV and plan on keeping it for 8 - 10 years. The depreciation is a little concerning, but I'm not overly worried since I plan on keeping it. I also paid if off in a little over a year.
I think others have a good point. If you can't afford to make a large down payment, maybe buy used to avoid having to have gap insurance and being up-side-down.
244... Never "invest" in a car. Unless it is already a model that makes $$ on it's own... (Sigh) M is never going to find that plug... Keep Evolving Nikki!!!
It always makes me laugh when I hear people thinking of a car as an investment, rather than simply a tool to do a job. I've dealt with enough problems on both newer and older cars to know that anyone expecting anything other than a massive loss of value due to normal wear and tear, let alone faults and recalls, on a vehicle they buy for anything more than scrap value, just doesn't accept reality.
The exception is when the car is rare, and sales people describe each unit as an "example" of an art piece, rather than a commodity.
For planning purposes: I am assuming that my 2011 Leaf will be worth nothing in 10 years ($1300 CAD/year depreciation cost). Kind of hoping it is rare enough to go up in value in that time.
@@jamesphillips2285 Those cars are no longer made . The incorporation of plastics in engine bay parts and electronics are designed to make the car not worth repairing after 10 or so years.
Vehicle depreciation is a good thing, as it allows for a used car market to exist. Other than classics and rare vehicles, they have and will always be depreciating assets.
My 22 year old pickup truck stopped depreciating a long time ago. If I had replaced it every 7-8 years and borrowed money for that, I would have locked in depreciation losses and finance costs. I save a ton of money on car washes and paint protection film too. In a few years, I will take advantage of depreciation on someone's version 1.0 EV pickup and keep it until I die.
And, depending upon model, your 22 y/o truck may soon become an "antique" or a "classic", and begin to regain value!
I love EV's just to avoid the gas station and oil change. I've been driving a 2012 Mitsubishi i-Miev that I got 8 years ago for $8k with less than 3500 miles on it. 6 weeks ago I got a 2024 Nissan Leaf SV Plus with an $8500 rebate and I also get the $3750 tax credit.
Buying an EV is getting better and better financially. Same problems as phones; newer ones will be cheaper and better, but that doesn't stop people from buying this year's models.
Another good video. One thing to keep in mind - no car is an investment, unless you purchase a classic and keep it in a temperature controlled garage for decades. As for EV's, we all know the depreciation is greater than the depreciation on an ICE. Gap insurance is a must. I had that on my 2006 Avalanche. Never needed to use it, but it was comforting. I intend to keep my 2022 Ford Mach-e until I can no longer drive. I did sell my 2016 Chevy Malibu hybrid (with the Volt battery/engine setup) for far less than I purchased it. But, I wanted to be out of that piece of garbage.
Abstracting from your hand and the related pain, the crash of your F150 actually generated quite interesting content - the information on insurance and process is really interesting.
Vehicle Deprecation is usually the least of the concerns about the vehicles I own. Mostly because I never lease, but purchase to own and I keep it for well over a decade, in which all models and conditions basically fall to near scrap level.
That said, I replaced my Prius for a Tesla in 2022, where values were rising, and I got about 2k more from the trade in from the initial estimate in January to May during the long waiting period of the time, that is with a fender bender during that wait time.
Sadly the car fax emails I got on the Prius showed it was totaled a year later from its new owner.
1. Buy the car you need, not the car you want. Keeping prices down on the front end makes back end depreciation easier. Makes payments lower and usually insurance is cheaper. This goes for getting cars that have very good gas mileage. Less of an issue with a charge-at-home EV but still true - good energy efficiency is a godsend when energy prices are high and is still cheaper when energy is low. A bonus is to develop a taste for practical, efficient cars. People who buy lifestyle, status cars are shallow and not the smartest when it comes to finance. Exceptions for people who are car nuts. Go ahead and get a 30 year old sports car (or whatever makes you a car nut). People will still judge you but we aren't supposed to care about that.
2. Buy late model used. Let the original owner take the initial , steep depreciation OR ...
3. Buy a model year end clearance. They are often discounted heavily so the depreciation is taken at the beginning, they are closer to the end of their model year depreciation curve at the start. If you sell in a few years, the mileage is a year lower per the model year and car usually looks a year newer because it's a five year old car that's only been in use for 4 years. You usually get a better trade in or sale price.
4. Keep the car for as long as you can. Keep it until you are scared it won't get you where you need to go. Then sell it, even scrap it if necessary - the loss at this point will be as low as it will be. We had this in mind when we bought our Bolt. We knew that the used market for EVs was in its early years and that we might not have a viable trade in path anytime soon. I look at new EV prices and see they are getting cheaper, with newer and better features. There is nothing on the market in our price range that is enough of a step up from our Bolt that is worth the high payment.
5. Have a backup plan in case your car gets stolen, totaled, no spare parts available etc and you have no money to just run out and buy a new replacement. How will you get around? Our backup plan is to use our second vehicle, use our local public transportation, buy an ebike etc. Keeping an emergency fund of at least a couple of thousand dollars and a good credit rating, if possible, keeps your options open.
6. Extended warranties and gap insurance are worth considering. I always estimate what the replacement value of our car will be at the end of the standard warranty vs the cost of the extended warranty. Same with the gap insurance - how much would you be upside down on the loan minus insurance payout if the car is totaled vs the cost of gap insurance. Usually I just accept the risk because we bought cheap cars with lower residual values and we have a backup plan if we suddenly lose the use of one or both cars. But your situation may be different if you have a pricier car or less financial cushion.
I think it might be a good idea also to not just buy used (or yes lease new) but also buy something used that is going to be made in mass quantities. That used Blazer EV or ev6 might not set your mind ablaze in excitement but it will be made in large quantities and share plenty of underlying bits and bobs with its platform mates so there should be lots of parts available 8 years from now when things go wrong. Unlike the Volt (and Bolt) of years prior.
On the flip side, I wouldn't have been able to afford my first EV without its 75% depreciation over 7 years and a little bit of FUD to make it less attractive to others lol
EV depreciation seems to be plateauing a bit, but that may reflect the fact that a lot of decent models were released close to each other about 4-5 years ago.
Carvana paid me more for my old vehicle than I expect any other dealer would have paid. I'm sure I could have made more by selling to a private buyer but it was worth the absolute lack of effort required. I did almost nothing to seal the deal. They didn't even hassle me over minor issues during the car inspection. Unfortunately, the high price they paid and the minimal effort they put into inspecting my vehicle makes me doubt whether I should ever purchase a vehicle from them. My vehicle was in good shape but it could have been a lemon and Carvana never would have known.
Got to feel bad for those that brought a new EV with probably 80% on finance at high interest rates, only to not only lose their jobs but lose half the value of that EV in first year, then forced to sell or have it repossessed then still owe maybe 60% of the loan and no car!
Massive depreciation isn't a new phenomenon, with dealers often overvaluing their cars. I used to buy used Lincoln Navigators and hybrids for my wife because they were 50% off after two to three years. They would run perfectly for a long time and were wonderful premium cars to own and drive.
TIL gap insurance is a thing. Good to know!
Anyone buying into the GAP scam is a fool...
It's gonna happen… with any car. One can try to shield yours from depreciation, but there are so many factors in the marketplace that impact it that… resistance is futile.
14:37 that right kids, cars are not assets (although that could change if you have one with certain tech).
Bought a 2018 Bolt with a new battery for 13k this month ❤
Genius!I am proud about you!
That's a great deal!
The Bolt is real Love!
The only car I came close to getting almost no depreciation was my very first car I bought in England, which I sold three and a half years after buying new for only £200 less than its purchase price.
I bought my first two EV’s after they had been leased and returned. They were substantially cheaper than new. My third EV I got new and plan to keep until something fabulous comes along. I don’t think I have ever kept a car more than seven years and when they are 7-10 years old they are never worth much.
I always tell the dealer I drive one in and I drive one out. It’s up to them whether it’s the same one or not.
Three tips to minimize deprecation:
1) Buy a cheaper car (less value to depreciate)
2) Buy used instead of new.
3) Keep your car for a long time.
For those that choose to throw away $100,000 on a Cybertruck and find that in 3 year's time, that truck's value is down to less than $50,000, understand the problem is not EVs in general, the problem is your individual decision to buy and expensive, hyped-up car, and your lacking the patience to wait for the hype to fade and the price to drop.
Great video but i dont think anyone would say shield your 1980s cell phone from depreciation. We are in the childhood of evs and the tech in them will be made obsolete at a quick pace.is it not more important that they be made upgradeable or that they are made to last into a second or third life and recycling infrastructure growth?, rather than worrying about depreciation as newer evs come down in price with mass production.
Important considerations, thanks.
A tip that I was told is to negotiate the trade in price before you ever start the buying process. Places tend to give you a better deal that way.
You can negotiate in whichever order you want, but I guarantee the sales rep on the other end is negotiating the two at the same time. If they already locked in the trade-in, they're accounting for that in the price they're willing to negotiate on the vehicle. Your total price will be the same either way.
Length of ownership is usually the best hedge against depreciation when you're buying new
hope my EV last 12 to 15 years, at that time I will not worry about its worth, really hope dealership will take it off my hands period
Unless you churn through cars, depreciation doesn't hurt you. You literally only care if you're selling your most or second most expensive asset, depending on if you own a home. It also hurts if you car gets totalled.
If you keep your car for many many years as we all must learn to do, then you don't care about supposed depreciation.
The EV owners I see railing about depreciation are creating their own misery by purchasing for short term ownership and expecting that the world owes them high value for a car they've used.
The upside of depreciation is that insurance and registration costs fall. New car buyers should count themselves lucky, and drop the attitude that their privilege should warrant a new car every three years. That attitude in the face of our Climate Crisis is frankly outrageous. Choose your purchase carefully and take care of it.
This is the golden age of EVs. Soon they'll be forced to shrink and then go away entirely. I find it hard to feel sympathy for EV owners trying to flip their cars.
100% No one should be looking at a car as an investment at any level.. expect to lose most of its worth. Ive had my model y for 3 years now and it has been flawless for me and I expect to keep it as long as I possibly can to get my worth from it.
Thanks
I'm managing my risk by leasing. I'm paying far less for 3 years of ownership than with traditional financing and I am not taking on the risk of depreciation, yet I'll still get any benefits if there is the value happens to be above the residual at the end of the lease.
EVs depreciation feels more like the 2000 -2010 next new cell phone-like issues. I am averse to leasing, but it seems to make more sense until the technology hits a steady state.
EVs depreciate more because of high repair costs. Especially cars like Tesla are like unrepairable blackbox with all the proprietary software only Tesla technicians can work on but at much higher hourly rate than average mechanics.
You forgot buy and hold.
My $21k 13k miles id4 makes me even happier when I look at the msrp of $45k or the new models of $50k+
Excellent video! I'm taking notes... Anyone have advice for car wraps for the bolt EV?
$$$$$
So yeah, don't buy _any_ EV, particularly a Bolt pos...Get you a nice used Toyota Rav4.
A new battery is under $100 bucks 😛
But then you're driving a RAV4
@@rp9674 So ?!? I can drive my 2011 Rav from Jacksonville FL to Atlanta on 17 gallons of regular gas. And I don't have to stop and spend the night somewhere to charge a pos EV...even if you can find a charge station...You drive your EV, I'll drive my gaser...each to his own 😎
You're not telling me anything new, I've driven gassers for decades, now I choose EVS. I've owned both so I actually know which ones a POS
For the last past five years, I have been driving electric cars that I’ve purchased and traded in for others. First Chevrolet bolt a Tesla model three and a Genesis GV60 I recently traded my GV60 and for a Mitsubishi outlander plug-in hybrid. I probably will not consider another electric car until they can reach the mileage of a plug-in hybrid the plug-in hybrid that I have is getting me close to 600 miles of range. And I have been getting close to 80 miles in pure EV mode. And I bought the car at MSRP. Plug-in hybrid are the best vehicles right now.
Did not know about gap insurance. Legacy resale value and history. Technological and economical changes. Competition.
Hey dude, "guaranteed asset protection" (gap) is a dealer scam ripoff !! Do your research brother...
Unfortunately, severe depreciation is to be expected. The technology is advancing so fast, any car you can actually buy is already obsolescent. I think the only solution is to buy a used car one technology level behind the most recent, and keep it for ten years,
We'll all be gone, it's just a matter of time
I think we should try to drive up used EV prices by installing lots of level 2 chargers conveniently located for people who don't own their own homes.
Tradiitional auto manufacturing is based on long timelines. The major big ticket components (engines, transmissions, alternators, brake systems, pumps, etc) are mature technologies which have lifespans of decades where the designs are tweaked over that time period and vehicles are mostly the same from year to year. So the difference between this year's last year's model is minimal (hasically the same horsepower, fuel economy, performance). Contrast that with EVs where each yeer there are a raft of new products with appreciably better specs than last year's offerings and you can see why EVs depreciate more over these short timelines. IMHO, I don't think that this situation will change any time soon. When one considers all of the investment in new battery, charging and electric motor technology that is currently allocated, we can expect to see steady advancements in the EV market year over year for years to come. I think that consumers and the auto indstry need to learn how the EV market is going to work. People's attitudes and expectations need to change. I think that EV depreciation will work more like smartphone orr laptop depreciaton rather than like legacy auto depreciation. If your attitude is to buy a car and drive it into the dust, then EV depreciation won't be much of a concern to you. If you go into your EV purchase with the attitude that it will depreciate like a laptop then you won't be troubled. If, howevfer, you think of an EV like a traditional car then you're in for a rude awakening, EVs and ICE cars are about as similar as smart phones and rotary phones.
I'm not sure if Gap insurance is a thing in the UK. Anyone else know?
IF.....I.....FALL...🖤
9:05 are those "unsold EVs" or Mazda ICE?
What about a similar analysis for leases? If we lease are we protected or hurt in general. For example if lease end purchase is higher than real value, what are our options? Negotiate? Just turn it in and buy the same car, different VIN?
Expected depreciation is ultimately factored into the cost of the lease, so you do pay for it. The difference is that, with leasing, everything is decided up front, so there are no "shocks" when you return the car at the end.
I’ll try just once more. For example. I have a lease that has a residual of $32,500. At lease end if the car is worth $25,000, what do we expect to happen? Can I buy the car for $25K, or do I have to turn it in and start over? I am asking you to speculate on what manufacturers, banks and dealers will do.
I bought an EV in November 2023. In January 2024 the same model was discounted in the show room by $10k.
My other car was purchased used and I fixed it over 2 years. It’s increased in value by 50% over that time even though I have still been driving it. And it’s not a nice car
Well my Korean made Kia EV6 GT Line AWD was when new $118k, we paid $88k for a demo in December 2023 (not in America) got offered $60k for a trade in on a Chinese made Kia EV5 last week that costs between $67k and $85k for the AWD GT Line. Well yeah we will be keeping or EV6 now! Our EV market is almost completely wrecked by our new government!
Kiwi?
@@transportevolved Guilty
Would a road trip to Mexico to rent some BYD vehicles be more reasonable that a trip to China? I tried hyper-mileing our 2007 Accord back from the Atlanta area glider club when I left my credit cards at home, drafting/slow acceleration/braking were unbelievably effective. Our drivers in Atlanta are horrible.
The U.S. has posted Mexico as no - go. You jeopardize your life entering Mexico . China is a no-go too. Some Americans have been extinguished there and are international pirates in the South China sea, harassing the Philippines in their own coastal territory and international waters.
I want to speak up for depreciation on eVs as a GOOD THING at the moment. For many folk, it is the only thing that makes an eV affordable. Buy one thats maybe 18moths old for 60% of the original price -- makes sense that way, and it gets one more ICE car off the road every time someone converts to electric.
And the more-money-than-brains crowd that Mr Musk targets go on funding innovation with the over-inflated costs of the brand new models: because you are paying not only for the car but for the cost of those innovations.
So it is a win for the environment at both ends of the market.
Funny story: I bought a Spark EV in 2018[?], drove it for ~18 months, and then sold it to Vroom right in the middle of COVID for $3K more than I paid for it!
There’s plenty of reasons to beat on the MX-30. Short range and idiotic rear doors are the big ones but I’m gonna defend it a bit since I bought one last year. It was and still is the lowest priced new EV available in Canada. I got approximately 25% off msrp and more for my ICE trade in than I paid for it 2 years prior even with a $10000 accident on it so I’m happy with the financial part of getting the Mazda.
Range: My wife and I both drive this car. I commute to work daily and we share it on weekends. It’s been a great little city car. I charge it once a week for our 100 km or so of driving. I wouldn’t buy it if I did much highway driving although it is possible if not convenient.
Rear doors: Just two of us. Nobody sits back there. I would have bought it if it was a 2 door. Still don’t like the design.
Positives: Near luxury interior that looks like most other Mazda models. IE it’s not weird. Comfort. Decent handling. Smooth and quiet. GT model is absolutely full of equipment. Nobody else has one although that could also be a negative. Low payments. Cheap to run and insure.
I don’t think it’s for everybody but it’s our only vehicle and we enjoy it so I plan to keep it for many years. 😊
EV technology is rapidly improving . I think buyers of EV's want the best state of the art. There is no shielding older EV's and convincing people to buy them from you. Do all your ducking , bobbing , weaving gymnastics , the selling time boxer's glove is going to land hard on your nose.
...why was that person spray washing the INSIDE of that Bolt?
Right?! I had a heart attack. Ironically, they just deprecated the fuck outta that car by cleaning it lol
A professional detailing place….who knows what they’re doing .
They were washing the door jambs, not the "inside" of the vehicle. A pressure washer would only be producing a fine mist, which wouldn't harm the interior at all, except where it is directly impacting.
well done!
I only pay cash for my vehicles! Never finance!
Bottom Line: Buy a used vehicle and drive it until the wheels fall off. Pay cash if you can, or pay it off as quickly as you can if you have to finance it. No one with a net worth under $1Million USD should even consider purchasing a brand new vehicle.
That might be overstating it, we can't count on high net worth individuals eating all of the depreciation to generate the sheer number of used cars that are needed for everybody to follow that strategy.
Car depreciation is like loss value in the stock market-it isn’t real until you sell.
The stock value change may reverse . The age and value of a car is on a permanent downslope .
@@mikewallace8087Ah, but the problem is during the pandemic they did not and that is fresh in people’s minds.
I get weird audio cuts in viedo.
Can you give us time stamps?
Don't buy a car as an investment
if you don't like depreciation, by a pre depreciated used
if you don't like money and want to always be paying, lease
buy a Fisker
Well you could always live in a 15 minute city and put your dollars into a house. It's worth ten times what I paid for it. A Walk Score of 98 makes life without a car easy.
Except single detached houses are not really compatible with 15 minute cities.
That is the REAL reason conservatives get upset by them. Imagine living near other people in a city!
They may even be people of colour!
All cars depreciate and some far more massively than others. As for battery electrics unless its Cybertruck made by Tesla all that is being sold is something that will send your electrical bill through the roof. Verdict: GM General Motors understands this! but is this true?.......
EV's prices will keep going down because batteries are rapidly getting cheaper and the scale of production is rapidly rising. That is great news when buying because you will pay less but when selling you will almost certainly get paid less. As others have said, buy the car you need (not so much for show) and don't think of it as an investment.
But things will get interesting soon for ice vehicles. By 2026 new EV's will be cheaper than an ice equivalent and by 2030 the bottom could fall out of used ice car sales.
Different in Australia. Record sales of new vehicles. The range of EVs has never been greater and sales of EV did increase, but as mentioned slower than anticipated. However the increase in sales of ICE (while a lower percentage increase than EVs) totalled more than all EV sales. You would be very unhappy being a Tesla owner with the new price for mod y going from AU$72K to AU$56K in a little over 12 months. Ouch.
Buy an ev after it's a year or two old, that's all.
Ok, I'll give the car a clean and buy some floor mats.
Automakers don't even want people to buy evs. Because they don't know how to make them profitable businesses.
Buy a three year old ev. Problem solved.
Or. Buy new. 7 year loan so payments are low. Get gap insurance.
I think when the new model y comes out, you will see another round of depreciation.
In all. Ev cars. Used modelY will hit the market as people want the latest hotness.
This lowers the price of used modelY and used model3. Which lowers the price of competing used ev.
Sigh. I recall the days when a 4-year car loan was nearly unheard-of. Cars were routinely financed for 36 months, max.
@@alsavage1 thats when the average car lasted less than 7 years
Just keep the car forever. EVs are very reliable for hundreds of thousands of miles.
Nothing that the trusting groupies can do about the car and house insurance prices/liability they didn’t see coming.
Just ban all Cars!
Sweetheart, GAP insurance is a dealer along with "any insurance company" selling it, a freaking scam. Put that overpriced GAP protection monthly premium payment in savings & use it for regular maintenance and repairs...and if you think simply keeping your vehicle clean and serviced keeps it from depreciating to a lower value...your living on Mars...
So, you own a Bolt, I send my condolences 😎
We have many viewers who would disagree, also, please drop the condescension.
New vehicles are for simps. With all due respect 😁❤️😂
It’s important to remember that not everyone is the same. For some people, buying new does make more sense than buying used.
Don't buy one, lease if you must and then just walk away.
Leasing is a bad option for so many folks. Keeping a car for a long while is better.
Depreciation effects the price of Lease far more then it does a purchase, you are quite literally paying for the depreciation. Leasing is generally speaking, a poor financial choice.
@@transportevolved leasing is the best option, due to the current level of depreciation. Did you not watch your own video?
@@chrisbailey5055 hardly a valid statement.
@@stgeorgee O, so residual value has no effect on lease price?
Remeber years back how I debunked Felon Musk and all you hard core believers in the magic of EVs ? This happens when emotion plus lack of basic understanding in electricity, mechanic, economics...., rules !
Not my problem, my V8 sports car will keep appreciating, YWNBAW
A Porsche 911 coupe will depreciate a mere 9.3% over 5 years. But that's $18K, not figuring the cost of money. You can keep it.
the same way that toys do if they weren't put out of the original packaging ?
Ah yes @alvasg550, someone who is both inconsiderate and too much of a wimp to post the actual words for which the acronym is meant to stand. You know, our audience are smart. They can look up what’s really at the heart of your transphobia.
Additionally, for someone who seemingly is a manly manly man, you appear to have a lot of knowledge of post vaginoplasty care. (FWIW, your reference to dilation is inaccurate). Perhaps this all turns you on? Because, sweetie, that’s the only reason we can think of as to why you know so much.
There are support groups and little blue pills to help with that. Crrraaaaack! - Nikki
So will the cost of the fuel.
@@matthewbaynham6286 Hilarious when the cost of electricty has skyrocketed 30% since 2021 and places like california has put in place charging bans to cope with brownouts lol.
I wouldn't consider getting an EV until governments force the industry into standardizing battery packs so people can more easily get affordable known-good replacement modules/packs for 15-25 years into the future.
They never standardized engines
Not gonna happen. ICE vehicles will be wiped out before that ever happens. China is already pushing 50% plug-ins and Europe will follow quickly (Norway and the other Scandinavian countries are already 60% to 90% plug-ins.)
Only the US is actually dragging behind but it’s still growing the numbers of EVs sold. The costs for EVs continue to drop which means prices on New EVs will continue to drop. Which means ICE Vehicles go bye bye faster.
@@rp9674 With ICE, you can fit almost any engine within reason to anything else as long as you are handy with a grinder and welder. You can even fit a V8 to a Tesla.
Can't really do that with batteries.
No
@@teardowndan5364 They could do that with batteries as well if they were not so proprietary.
I am hoping that aftermarket batteries will become common for common EVs.
Some, like the Leaf, have been reverse engineered already.
I feel the focus of this presentation is misplaced. Evs experience significant loss of value from their new price. I think a lot of that is the result of the now 'common' knowledge about the short life of the battery. FUD has saterated the general publics knowledge pool.
I would not fight this windfall, but embrace it. Don't even consider buying new at this time. Buy 2 or more years old and save from the reduced price on a car you know will perform as well as a new one.
That's how to beat EV depreciation.
We provide news, insight and advice. Depreciation is happening, and it’s affecting owners of existing vehicles. Buying used (and giving advice on that) is something we’ve made plenty of videos on. - Nikki
@@transportevolved Insight can include how to avoid depreciation or lessen it as much as possible. It's a basic math dollars and cents analysis. For example, buying to qualify for the Used EV $4k incentive, holding for 1 year and trading it for another qualifying vehicle. This could save the depreciation loss of buying new. It also allows battery development to go ahead with the next new version to have less depreciation impact on your car expense. Don't buy new at this time is the way to save on vehicle expense.
EVs are “Depreciating” because they went VERY high in 2021 and 2022 due to lack of supply.
Now there is more production capacity overall and companies like Tesla are dropping the prices as Costs to manufacture have continued by to go down. Also, New Teslas (and many other EVs) are now eligible for the $7,500 incentive. Plus any State or Local EV discount.
Which means a NEW Tesla is close to $30K when factoring in Incentives. Until and unless that changes, the value of used EVs will be lower because New Vehicles cost way less than they did just two years ago.
This will continue as more and more companies reach scale in manufacturing EVs.
Love you Nicki❤ I don’t know if you are wearing lipstick but it’s reading as purple. To me it’s distracting.
EV will plummet because of battery health overtime. its not like a diesel that will last forever
A lot of scrambled statistics here. What we are currently seeing is the real value of an EV without all the initial hype, tax breaks and incentives. Now that adequate time has passed to see the real performance of EVs, we are learning that they are akin to an Iphone, in that they are always cooler than the previous model, initially overpriced and not serviceable. Basically, like the Iphone, EVs are disposable. Unlike an ICE vehicle, EVs batteries degrade into useless bags of highly toxic chemicals. No matter how well an EV has been maintained, the battery will still degrade over time and the cost to replace it is ridiculously expensive. Contrast that to an ICE vehicle that, properly maintained, can be fully serviceable for hundreds of thousands of miles and it it does need an engine or transmission replaced there are used, rebuilt, re-manufactured or even new ones still available to serve for another hundred thousand miles, at a much more reasonable cost. Add in, that if the vehicle does need to be scrapped, it is completely recyclable. In fact, scrapyards will pay you for an old ICE vehicle while I don't know what will become of the useless bags of toxic chemicals in EVs. I must add that if you look for used cars in America you will see the Ford Crown Victoria model, many with half a million miles on them still having resale value. They were produced from 1992 to 2012 and there are still a lot of them providing service as daily drivers, car services, police patrol cars and taxis. Try that with an EV!
An EV battery is like a gas tank that gets a hole that keeps getting bigger except the battery cost to much to fix
perhaps you should educate yourself on battery technology and chemistry before you say something stupid. food for thought.
@stgeorgee are you saying the battery will always charge to 100%? You might want to think about that. Also, the video is on used EV'S they have older batteries and are even worse
By the same logic, an ICE car is like a gas tank that keeps shrinking. And increasingly using oil over time..
@PygKLB how do you get that unless you mean we are going to use up all the oil . Maybe you mean cost to refuel. I know the more renewable energy, the higher my electric bill gets
Advice from people who don't own an EV is useless
The EV mining is horrible for the planet. The faster EV sales crash, the sooner EV go away, the better for mother nature.
Now repeat your analysis for oil mining.
You don't have the first clue about the subject. For example, new battery technologies are in development that use sodium (from salt) as the primary mineral in the battery, not lithium. The world isn't going to run out of salt.
Hhahahahahahah what the FUCK is that thing?????
Ah, we see you didn’t graduate from high school. That’s okay, and we’re here to help you get your GED. Since we can’t tell what you’re referring to (I mean we could be talking cars, buildings, on screen text…) perhaps you’d give some more pointers. - Nikki
My dealer was not paying much better than a used car shopping center. And it is often a huge hassle to sell privately, especially a car that is valued at ten thousand or more. Private sales need to account for either cash in that amount, or a certified check, each with their own challenges. Usually required to do the transaction at the bank itself so you are not running around with a large sum or so a check can be verified at time of sale. Sometimes, taking a a thousand or two off a car valued at 10s of thousands, is worth the convenience of dealing with a company.
It’s usually easiest to meet at the bank parking lots to show them the car. If you decide on a deal, some banks even have blank bill of sale forms to make it easier.
@@aussie2uGA There are 'options' but it is generally not something someone does on a regular basis, so it can be a little intimidating dealing with it.