Our cars are devalued significantly.

[Vulnox]

People panic so much over it but remember you need to start off the price of your car at 7500 less than you paid for it as the starting point. Reason being is that was our tax credit that we all floated.

I personally dont stress it to much as I keep my cars 7-8 years and no matter how badly a car drops in value they all drop pretty low by that point any how. Come on my 2013 car I paid 32k for, I sold for 5k in 2021. It had 160k miles on it. At 7-8 years range cars just are not worth much. I plan on keeping my mach e the same length of time.

Yeah, these posts are a constant banner showing someone isn't used to the PHEV/BEV market where tax credits create downward pressure on the used market. It's not a new phenomenon, it's at least 10 years old starting with the mainly PHEVs on the market that got the tax credit.

Nobody should be shocked by the residual value if you paid any attention. If you didn't or bought during the peak of the market a year or so ago, that's rough for sure.

But most people looking to unload their vehicle got the $7500 credit or it was at least available to the general market, so your $60k vehicle was really a $52,500 vehicle and so on. That has an impact on the used market, even for vehicles that no longer qualify for the rebate because they are competing with cars that do. Why would someone buy a used MME for $40k if they can get a brand new Model Y with an MSRP of $50k for $42,500 after tax credit?

So what happens? Surprise surprise, the residual of vehicles in that class is lower. If you got the $7500 credit on your MME, it won't really sting that bad if you remain rational and consider what the true initial cost for your vehicle was and don't just repeat the MSRP over and over. If you didn't get the tax credit or paid over MSRP during the peak, then it stings, but almost everyone saw this coming so there won't be a ton of sympathy to go around.

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[zvez]

color me shocked another thread that our cars are worth $12.49 now.

 

[Sikkun]

People panic so much over it but remember you need to start off the price of your car at 7500 less than you paid for it as the starting point. Reason being is that was our tax credit that we all floated.

I personally dont stress it to much as I keep my cars 7-8 years and no matter how badly a car drops in value they all drop pretty low by that point any how. Come on my 2013 car I paid 32k for, I sold for 5k in 2021. It had 160k miles on it. At 7-8 years range cars just are not worth much. I plan on keeping my mach e the same length of time.

I’m surprised they didn’t make us pay to take my wives car by the time we traded in that junk….

Oh no it isn’t worth 40k after I put 200k miles on it…I’m so shocked!

 

[Thunderbuck]

Only if you plan on getting rid of it soon. Who knows what the value will be in the future? I don't care because I plan on keeping mine through 2032.

I have a theory. I understand completely how delusional this sounds but I think there is a chance that resale will improve. "But that never happens!" you might scoff, and I wouldn't blame you, but bear me out.

I think these depressed resale values are artificial and temporary. They started last spring with Elon's deep, ill-advised price cuts. That set off a lot of unintended consequences that are depressing the market, including some distrust and negative sentiment among the buying public. Among other things, we now have a flood of used Teslas out there because Hertz is now dumping theirs (in part because Elon's price cuts wiped out millions in residual value for them), and Ford has also had to slash prices to stay competitive with Tesla so that's affecting resale as well.

Critics have had a field day with "Nobody wants EVs!" pronouncements and yes, that has an impact on general consumer sentiment. But as more and more people gain meaningful experience with EVs, either because a friend/family member has bought one or they have to drive one for work, many of them realize how good they are.

So yes, I think demand will recover and our resale values will go with it.

 

[rbertonieresr]

Right now gas is cheap more or less and charging stations are few. In a couple of years that could change and EV’s will be worth a lot more. So if not selling now, don’t sweat it.
Currently our fuel reserves are very low and a bad hurricane season is expected. Gas might shoot up this year if a major storm hits and takes out a few rigs or refineries. I hope not but it could happen.

 

[mach-e-pot]

Almost all EVs take big depreciation hits. This is not unique to Mach-e.

 

[mkhuffman]

Yeah, these posts are a constant banner showing someone isn't used to the PHEV/BEV market where tax credits create downward pressure on the used market. It's not a new phenomenon, it's at least 10 years old starting with the mainly PHEVs on the market that got the tax credit.

Nobody should be shocked by the residual value if you paid any attention. If you didn't or bought during the peak of the market a year or so ago, that's rough for sure.

But most people looking to unload their vehicle got the $7500 credit or it was at least available to the general market, so your $60k vehicle was really a $52,500 vehicle and so on. That has an impact on the used market, even for vehicles that no longer qualify for the rebate because they are competing with cars that do. Why would someone buy a used MME for $40k if they can get a brand new Model Y with an MSRP of $50k for $42,500 after tax credit?

So what happens? Surprise surprise, the residual of vehicles in that class is lower. If you got the $7500 credit on your MME, it won't really sting that bad if you remain rational and consider what the true initial cost for your vehicle was and don't just repeat the MSRP over and over. If you didn't get the tax credit or paid over MSRP during the peak, then it stings, but almost everyone saw this coming so there won't be a ton of sympathy to go around.

This is perfect. Another reason for me to hate Federal Government regulations and subsidies. And you are 100% right on the money.

Anyway, new car depreciation is why I almost never purchase a new car. I look for a used one with low miles that has already depreciated some. But I made a huge exception for my MME.

I wanted this car. I badly wanted it. And at the time, every car, new and used, was overpriced. I knew it, and I know it now. The market is back to normal, but it was not normal when I purchased my brand-new MME.

And I would not have done it any differently. I love my car, and I am glad I had one of the first GTs ever made. I am not sure how long I will keep it, but I love driving it and I am not in a hurry to replace it. So, who really cares?

If depreciation bothers you, buy a used 5-year-old Camary. Otherwise, just buy want you want and know this is the way it works.

 

[ArthurDOB]

I have a theory. I understand completely how delusional this sounds but I think there is a chance that resale will improve. "But that never happens!" you might scoff, and I wouldn't blame you, but bear me out.

I think these depressed resale values are artificial and temporary. They started last spring with Elon's deep, ill-advised price cuts. That set off a lot of unintended consequences that are depressing the market, including some distrust and negative sentiment among the buying public. Among other things, we now have a flood of used Teslas out there because Hertz is now dumping theirs (in part because Elon's price cuts wiped out millions in residual value for them), and Ford has also had to slash prices to stay competitive with Tesla so that's affecting resale as well.

Critics have had a field day with "Nobody wants EVs!" pronouncements and yes, that has an impact on general consumer sentiment. But as more and more people gain meaningful experience with EVs, either because a friend/family member has bought one or they have to drive one for work, many of them realize how good they are.

So yes, I think demand will recover and our resale values will go with it.

That certainly is possible. There are so many threads where people are beating themselves up for not being able to see into the future, and I've never understood it. Last time I checked, no one has a window into what will be. @Vulnox had a nice explanation of how things work with rebates, but many people don't know this or don't know how to interpret the information if they have it.

 

[ArthurDOB]

This is perfect. Another reason for me to hate Federal Government regulations and subsidies. And you are 100% right on the money.

Anyway, new car depreciation is why I almost never purchase a new car. I look for a used one with low miles that has already depreciated some. But I made a huge exception for my MME.

I wanted this car. I badly wanted it. And at the time, every car, new and used, was overpriced. I knew it, and I know it now. The market is back to normal, but it was not normal when I purchased my brand-new MME.

And I would not have done it any differently. I love my car, and I am glad I had one of the first GTs ever made. I am not sure how long I will keep it, but I love driving it and I am not in a hurry to replace it. So, who really cares?

If depreciation bothers you, buy a used 5-year-old Camary. Otherwise, just buy want you want and know this is the way it works.

"No comment" on the regulations and subsidies part, but I agree with everything else here. I bought a new MME when I did because I really wanted one. It wasn't the best financial decision I've ever made, but I love it, and barring unforeseen circumstances, I'm keeping it for at least 10 years. If I was considering trading it in two years from now, I would have looked into depreciation for this model and likely would have chosen something else. My next car in 2032 or 2033 will be a used two-year-old model of... who knows?

 

[Sikkun]

I have a theory. I understand completely how delusional this sounds but I think there is a chance that resale will improve. "But that never happens!" you might scoff, and I wouldn't blame you, but bear me out.

I think these depressed resale values are artificial and temporary. They started last spring with Elon's deep, ill-advised price cuts. That set off a lot of unintended consequences that are depressing the market, including some distrust and negative sentiment among the buying public. Among other things, we now have a flood of used Teslas out there because Hertz is now dumping theirs (in part because Elon's price cuts wiped out millions in residual value for them), and Ford has also had to slash prices to stay competitive with Tesla so that's affecting resale as well.

Critics have had a field day with "Nobody wants EVs!" pronouncements and yes, that has an impact on general consumer sentiment. But as more and more people gain meaningful experience with EVs, either because a friend/family member has bought one or they have to drive one for work, many of them realize how good they are.

So yes, I think demand will recover and our resale values will go with it.

At some point the prices need to come down…taxpayers shouldn’t be subsidizing auto makers indefinitely. The price should have been slashed $7.5k if that’s where it needs to be for it to sell. Manufacturing needs to figure out how to make that profitable not shove it off on everyone else.

(I’m not anti tax credit…though I am anti companies keeping prices high just because there is a credit.)

 

[agoldman]

the ops depreciation was actually pretty good compared to what I've seen recently. pretty much all ev vehicles are taking the hit.

 

[HuntingPudel]

Does anyone remember how much we all got for the car we replaced. I had a 8 year old Honda accord. Got almost 22k for it. Plus the 7500 rebate. Neither of those financial incentives are available today

and I am keeping this car at least 8 years!

My sister offered me what the dealer offered for trade-in. IDC if she ever finishes paying me back for the Fusion Energi. (But don’t tell her that!) ??

I’m keeping mine for 8-10 years unless there is some massive swing in the Gen2 performance and price (or in a competitive product that I find attractive, of which none exist). ?‍?

 

[HuntingPudel]

...I plan on keeping mine until its wheels fall off.

You’re waiting until it becomes a bZ4X? ??

 

[HuntingPudel]

Yeah glad it wasn't just me who became a juvenile after reading that ?
Should I be worried about thinking like you ....or should you be worried about thinking like me ?

I’m just wondering what’s going to be enough to set your user name change to Angrier Man. ?? I guess it’s going to be a doozie. ??

 

[tuminatr]

It's probable but that's currently what's going on with ALL EVs. Go look at the prices of other used EVs they are absolute bargans.

Also the sticker prices of the MME have gone down significantly. In MN where I live you can get 10k off in a lease. Effectively getting a new base 24 GT for 43k

This year too the new $7500 rebate ( yes I realize it doesn't apply to the MME) is now instant thus lowering the values of used cars

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