The depressing reality of buying an EV: Especially bad resale [ADMIN WARNING: NO POLITICS]

[ryannix123]

Cars are a terrible purchase, but EVs are even worse.

I bought a 2022 MME Premium for what I thought was a good price, patting myself on the back for buying CPO. The MSRP on the 2022 MME Premium was roughly $51k, and I bought mine with 6k miles for $37k. Roughly 27% off of MSRP for an 18-month-old car seemed pretty good, and I knew more feature enhancements through software updates were coming. Well, 10 months later, I realized I way overpaid. Prices for CPO MMEs keep plummeting. A 2023 MME Premium can be had for $3k less than what I paid.

After paying for tax, title, licensing fees, etc., I owe way more than the car is worth. Worse, had I waited until early 2024 to buy the car, I could have at least gotten a $4500 tax credit for two-year-old used EVs.

I love my MME, but most EVs are bad for the manufacturer—Ford loses roughly $60k for every EV it sells—and bad for the buyer. I plan on keeping this car long-term, but it's worth noting that buying EVs is potentially financially ruinous for both parties. I also own a 2016 Chevy Volt Premium, which I gave to my teenage son, and Chevy lost money on every one it sold. I bought that CPO, too. I think hybrids are the way to go, and Toyota stated publicly that they'll never build a fully electric vehicle.

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[AtomicInternet]

This is why I leased mine. I wasn't 100% sure I wanted to jump into EVs permanently, and for whatever reason Ford was making leasing very attractive at the time.

I plan to purchase a different USED Mach E when my lease is up since the buyout price for my lease is now pure comedy.

 

[Tampamike]

Just drive your car and enjoy it while you have it. I’m guessing you’re not financially ruined and you can give it to your son when his Volt eventually gives up the ghost.

 

[Teslaeata]

I buy outright, don’t worry about depreciation, cost etc, enjoy it while it lasts, when it’s gone it’s gone, am 63 and will be dead soon ? can’t take it with me.

Thinking about either replacing Stang with another, the new For Capri or throwing the cash I’d spend into the pension and stick with Stangy.

 

[Sikkun]

My 2015 ICE Mustang depreciated 90% in value by the time I sold it.

Guess I should never buy a car to turn a profit.

Well anyway.

Toyota bZ4X is a thing also.

 

[AliRafiee]

With a $60K loss on each car, I wonder why they keep making more and more each month. ?

 

[ryannix123]

This is why I leased mine. I wasn't 100% sure I wanted to jump into EVs permanently, and for whatever reason Ford was making leasing very attractive at the time.

I plan to purchase a different USED Mach E when my lease is up since the buyout price for my lease is now pure comedy.

This is a smart move on leasing. Although sales seem to be improving, I don't think the MME is selling well, so Ford priced a lease to be attractive.

"Cloud Theory states that Mach E’s turn rate, the percentage of vehicles clearing from the inventory over a certain period, was still below the industry average. Even though its turn rate soared from 7% to 33% since the price cuts, it remains under the industry average of 45%."

 

[ryannix123]

With a $60K loss on each car, I wonder why they keep making more and more each month. ?

It's a long-term bet for Ford, and I hope it pays off. The stock market doesn't share the enthusiasm for Ford like it did/does for Tesla.

 

[djstough]

At least you didn't pay an inflated price for it! I leased both my EVs, reasoning that the tech is moving so fast. I have no liability at the end of the lease (maybe some extra mileage) and can just lease a newer EV at that point.

 

[HuntingPudel]

If you plan on keeping the car, current resale value is meaningless unless it gets totaled. ?‍?

 

[Sikkun]

It's a long-term bet for Ford, and I hope it pays off. The stock market doesn't share the enthusiasm for Ford like it did/does for Tesla.

Tesla is not a dividend stock.

 

[ryannix123]

Just drive your car and enjoy it while you have it. I’m guessing you’re not financially ruined and you can give it to your son when his Volt eventually gives up the ghost.

That's exactly the plan.

 

[ryannix123]

My 2015 ICE Mustang depreciated 90% in value by the time I sold it.

Guess I should never buy a car to turn a profit.

Well anyway.

Toyota bZ4X is a thing also.

Cars are depreciating liabilities, not appreciating assets. This post argues that EVs are especially bad at depreciation, and the MME is one of the worst.

 

[Scottie’s MachStang]

The $60k per unit loss figure includes costs for design, development and tooling. The number goes down with each unit sold. Still several years left on this platform to further amortize the costs. May still be a loser in the end but you can’t really look at that number until the production run (and any evolution that makes use of the design, development and tooling) has run its course.

 

[ryannix123]

The $60k per unit loss figure includes costs for design, development and tooling. The number goes down with each unit sold. Still several years left on this platform to further amortize the costs. May still be a loser in the end but you can’t really look at that number until the production run (and any evolution that makes use of the design, development and tooling) has run its course.

You're right, and I should have provided context on their investment and amortization of the costs of building factories.

Still, Farley admits it's very hard to make a profitable EV.

"Farley said Ford is first focusing on smaller EVs instead of larger all-electric trucks and SUVs, which have historically been gas-powered profit engines for the company, because such vehicles are “never going to make money.” “You have to make a radical change as an [automaker] to get to a profitable EV."

I really loved my Volt Premium, and I think the hybrid model is the way to go: a battery that provides 50 miles of range and then kicks over to gas when you need it. Toyota agrees, too.

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