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

[Snakebitten]

I like the threads that start with "100,000 miles and still going strong"

Somehow depreciation just isn't a thing if the vehicle has done enough of what it was intended for. Miles. ?

And EV's in general, seem to promise being able to do just that with the best of the ICE version.

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[DesignMatters]

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

The money is still lost — the loss just hasn’t been realized yet. They aren’t going to go up in value so the complaint of OP is valid about abysmal resale and huge financial hit, realized yet or not.

 

[Scottie’s MachStang]

On the positive side, I recently read an article that expressed that the Tesla 3 is likely the ‘new’ Camry. Assuming that batteries have the longevity that they appear to have - already some Teslas crossing the 200k mark with original battery still above 90% - and assuming there is a charging solution for apartment dwellers, in a few years we’ll have a bunch of really inexpensive vehicles that are reasonable to maintain that could still provide the next owner with several years of inexpensive transportation.

 

[MachE1977]

Check the Lightnings. It’s worth $45k at most, with the average being $35k for an ER Lariat

 

[ryannix123]

On the positive side, I recently read an article that expressed that the Tesla 3 is likely the ‘new’ Camry. Assuming that batteries have the longevity that they appear to have - already some Teslas crossing the 200k mark with original battery still above 90% - and assuming there is a charging solution for apartment dwellers, in a few years we’ll have a bunch of really inexpensive vehicles that are reasonable to maintain that could still provide the next owner with several years of inexpensive transportation.

That's great news about the long-term capacity of EV battery packs. My 2016 Volt Premium still maintains most of its charging capacity, and I only have to put in gas two or three times a year, and only when it's super cold outside.

 

[Snakebitten]

The money is still lost — the loss just hasn’t been realized yet. They aren’t going to go up in value so the complaint of OP is valid about abysmal resale and huge financial hit, realized yet or not.

In all fairness, if you keep a vehicle long enough, the "realized" depreciation hit is pretty much the same for an EV as it is an ICE. A Mach-E as a Camry.
Eventually they are both worth scrap value. Therefore impossible to take a huge hit, as some would describe it.

I've kept several vehicles in my lifetime until they were used up.
Hurricane Harvey ended the road for two of my "never going to sell or trade" vehicles.

There are lots of examples of circumstances where realizing depreciation isn't taking a bath on a 3 year old trade/sell.

 

[Dear_OP]

You should walk to the MB dealership if you wanna see depreciation. Its EQ-whatever value loses by the minute! I can get a 1-year old EQE 350 with less than 10k km at 60% of its OG price!
MB has all but given up on electrification. Like VW, it's on survival mode and lobbying at EU.
BMW is the only German marque that has somewhat of a viable EV roadmap with the introduction of its Neue Klaas models. And I believe they outsold Tesla in Europe last July.

Back to Ford. MME GT depreciates the most in the MME family. I saw a few 2022 GT no more than regular MME of the same year. I might snipe for a used 2024 GT in the coming years.

 

[Teslaeata]

Not everybody’s situation is the same and mine is such that I am still in positive equity.

Car cost £53,500

Boris “honest” Johnson welched on the £3k government grant deal he promised like he seemed to do on virtually every promise he ever made in my view but Ford honoured that contribution bless ‘em, gotta love Ford?

Car’s worth c£13k in a trade-in where it will go unless I give to a son.

I charge for the 85,000 miles business use (£42,500)

So, am not quite in “loss” territory.

I love my life.

I love my Stang.

Speaking of which, another short 200-ish mile road trip tomorrow and I can’t wait ?

 

[superdave80]

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

They’re going to make it up on volume!

 

[YeOldeTraveller]

I had a salesdroid make a comment on resale value when I bought my first car. I was getting a stick, and he was trying to tell me I would lose more in resale than I saved in purchase. I asked what difference it would make in 5 years and 200K miles.

The last three cars I got rid of all had over 200K miles on them at the time, and generally over 8 years of ownership.

My '24 Rally is the first time I have leased as I don't expect to keep it long term. There are many changes coming in the next 3 years, so I am trading resale risk for extra miles risk.

 

[Jerrytball]

Check the Lightnings. It’s worth $45k at most, with the average being $35k for an ER Lariat

I know what you mean I was thinking with a 23 with 6000 miles on it. They would at least pay off what I financed for 0%, which was 32,000 but Ford I bought it from that same dealer said the best they could do was 30 and Carvana will do 36,800 which is more than fair because I was looking at an outlander the new plug-in hybrid from Mitsubishi and it was basically insulting. I actually could’ve walked away with that plug-in hybrid if they would at least paid off my vehicle, but Mitsubishi wouldn’t even give me 16,000 for it. I’m like that is this totally ridiculous. I don’t buy cars as an investment and I don’t expect a lot in return, but you would think a $60,000 car after owning it for eight months and 6000 miles would at least give you $32,000 but I guess that’s open too much anyways I’m keeping mine till it’s paid off since it’s 0% there’s no sense in paying it off. I was just thinking of a plug-in hybrid as an option of less for lack of a better word stress while you’re driving or not wanting to wait around to charge it while you’re driving on a trip if I ever go on a trip again lol I’m pretty much just a local around the neighborhood guy. And that’s why the Mustang works out perfect for me. I don’t go anywhere outside of 50 mile radius so this is perfect and there’s no sense in getting rid of it. I’d lose so much money by converting over to a new vehicle.

 

[voxel]

Huh? Is depreciation new to you?

My 23 Grand Cherokee has depreciated as badly as my 22 MME. It hits overpriced problematic vehicles the worst.

New Tundra hybrids have horrible depreciation too and that’s due to the $10 K discounts offered by dealers on new ones and the engine recall. Sometimes depreciation is a good thing. I’m looking at 1-2 year old C8s that are now $20K less than new MSRP with sub 10K miles.

 

[Fat Mach]

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.

The purchase price of your leased car when you are done with it is TOTALLY negotiable. They don't want the car back.

 

[devmach-e]

The purchase price of your leased car when you are done with it is TOTALLY negotiable. They don't want the car back.

Actually, it isn't. You and the leasing company agreed to a fixed buyout value at the end of the leasing period. Rather than negotiate a lower buyout, they'll send the car to auction. Or it might end up on the dealer's lot for sale for a lower amount a month later. Depends upon how the leasing company feels the market is going. But they won't negotiate with you directly.

 

[VaporTrails]

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

I agree this bashing point is seems to be missing context. The Engineers that designed it and the tooling for the plant that makes them have huge capital outlays. They will recover in time. The more cars they make with the same parts and processes, the faster they recover cost. Ford used that as a talking point to avoid decreasing costs further. My opinion is that this backfired and created loss leader press.

You can also blame the press for fear, uncertainty and doubt bathed in sensationally misleading headlines. Those drive down perceived value. Get a hybrid if that is what you want. For a daily driver, I think the battery car is a winner.

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