How Used EV Values Are Dropping Like Crazy!
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Date: 2024-05-16
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Comments and reviews: 20
carwow
The tsunami of disinformation and bitter bile against EVs plays a big part in this. There is so much ignorance out there about EVs that it’s impossible to correct it all. Most, if not all of it, comes from the oil companies. This is disseminated by eager outlets such as Sky News, GB News’, and the tabloids, and even broadsheets such as the Telegraph. Most of the disinformation is made up from whole cloth. Some fables have a grain of truth which is then distorted out of all reality into garbage such as it takes 75 little Tibetan monk kids to make one pound of cadmium/cobalt/ lithium for a car battery’ and multiple variations on that old chestnut. In many ways the lies about EVs are in the same vein as the lies about clean energy solutions such as solar and wind energy. Then of course there are the knuckledraggers who say but me like brum-brum noise’ or Ev is just golf cart’. All lazy-minded, cretinous nonsense of course. And it is obvious that the people repeating the garbage, or getting really furiously and inexplicably upset that there’s an alternative mode of propulsion, have never driven an Ev and likely never been in one. Oh and the videos of EVs crushing ICE vehicles at the track or drag strip by huge margins are somehow cheating’ That’s hilarious.
Anyway, to sum up - thick people don’t understand EVs and are too lazy or narrow minded to find out for themselves. No doubt the knuckledragging thickies will be repeating all the garbage in the comments here.
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The tsunami of disinformation and bitter bile against EVs plays a big part in this. There is so much ignorance out there about EVs that it’s impossible to correct it all. Most, if not all of it, comes from the oil companies. This is disseminated by eager outlets such as Sky News, GB News’, and the tabloids, and even broadsheets such as the Telegraph. Most of the disinformation is made up from whole cloth. Some fables have a grain of truth which is then distorted out of all reality into garbage such as it takes 75 little Tibetan monk kids to make one pound of cadmium/cobalt/ lithium for a car battery’ and multiple variations on that old chestnut. In many ways the lies about EVs are in the same vein as the lies about clean energy solutions such as solar and wind energy. Then of course there are the knuckledraggers who say but me like brum-brum noise’ or Ev is just golf cart’. All lazy-minded, cretinous nonsense of course. And it is obvious that the people repeating the garbage, or getting really furiously and inexplicably upset that there’s an alternative mode of propulsion, have never driven an Ev and likely never been in one. Oh and the videos of EVs crushing ICE vehicles at the track or drag strip by huge margins are somehow cheating’ That’s hilarious.
Anyway, to sum up - thick people don’t understand EVs and are too lazy or narrow minded to find out for themselves. No doubt the knuckledragging thickies will be repeating all the garbage in the comments here.
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juttley72
this is good news for those of us who have experienced EVs and know that they are the future. I am about to swap my Land Rover discovery 4 which I have had from new for an EV and so having them drop in value so much is a bonus. This will be the second time in just a few years that buying a car has been a positive experience. Just after the pandemic, I sold a Peugeot Traveller for the same money I paid for it 18 months earlier. Now, I can buy an EV for silly money as well. Paying cash for a second hand car that is dropping because people are too dim to realise that having them saves a tonne of cash in running costs is crazy to me. currently looking at a KIA, which comes as standard with a 7 year warranty and 100K warranty on the battery. Massive savings for me over running the disco. The disco is my final fossil fuel vehicle, my wife drives an EV and so does my son. My electric bill each month is less than 80 pounds. Yes I have solar panels, but equally our house is fully electric, so we dont have gas or oil boilers. No I am not a tree hugger, just someone who wants to pay as little as possible for travel costs, and home running costs. happy days, I hope they drop even more.
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this is good news for those of us who have experienced EVs and know that they are the future. I am about to swap my Land Rover discovery 4 which I have had from new for an EV and so having them drop in value so much is a bonus. This will be the second time in just a few years that buying a car has been a positive experience. Just after the pandemic, I sold a Peugeot Traveller for the same money I paid for it 18 months earlier. Now, I can buy an EV for silly money as well. Paying cash for a second hand car that is dropping because people are too dim to realise that having them saves a tonne of cash in running costs is crazy to me. currently looking at a KIA, which comes as standard with a 7 year warranty and 100K warranty on the battery. Massive savings for me over running the disco. The disco is my final fossil fuel vehicle, my wife drives an EV and so does my son. My electric bill each month is less than 80 pounds. Yes I have solar panels, but equally our house is fully electric, so we dont have gas or oil boilers. No I am not a tree hugger, just someone who wants to pay as little as possible for travel costs, and home running costs. happy days, I hope they drop even more.
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cmcbride98
I'd be interested to see the depreciation comparison between the fuels too, in addition to this year-on-year depreciation comparison.
Newer used electric cars will always be a harder sell for the near future due to the lack of grants towards the cost of the vehicle and chargers etc.
The market is also flooded with company cars that get huge tax breaks in the UK as its taxed on a % of the RRP based on emissions (hence EVs being hugely appealing)
Personal cars will just be effected by hire PCP/HPI costs due to reduced/normalising residuals.
If you already have the capacity (no pun intended) to run a leccy car, it's nice to know there are now some bargains in the used market
Now if only we could convince new car buyer to start buying superminis and hatchbacks again, instead of small crossovers and SUVs
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I'd be interested to see the depreciation comparison between the fuels too, in addition to this year-on-year depreciation comparison.
Newer used electric cars will always be a harder sell for the near future due to the lack of grants towards the cost of the vehicle and chargers etc.
The market is also flooded with company cars that get huge tax breaks in the UK as its taxed on a % of the RRP based on emissions (hence EVs being hugely appealing)
Personal cars will just be effected by hire PCP/HPI costs due to reduced/normalising residuals.
If you already have the capacity (no pun intended) to run a leccy car, it's nice to know there are now some bargains in the used market
Now if only we could convince new car buyer to start buying superminis and hatchbacks again, instead of small crossovers and SUVs
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billkid0000A
Hi Matt, I was aware of the difference in values you presented and the various vehicles and their respective depreciation percentages. In my opinion, the analysis is superficial. See what the final cost would be (seller) and in the sales price, remove the cost of fuel in a year and workshop with the mandatory inspection. By devaluing these two items, the final result will be quite surprising. I would add that this may be the reality of the analysis in England, but it is not the same for all European countries, where the average engine capacity is 1600 cc, so for vehicles presented, for example in Portugal, the devaluation is well over 25% in almost all of them. Nobody here wants a car that consumes more than 8 liters. V6, V8, etc. vehicles crowd the stands due to lack of interested parties.
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Hi Matt, I was aware of the difference in values you presented and the various vehicles and their respective depreciation percentages. In my opinion, the analysis is superficial. See what the final cost would be (seller) and in the sales price, remove the cost of fuel in a year and workshop with the mandatory inspection. By devaluing these two items, the final result will be quite surprising. I would add that this may be the reality of the analysis in England, but it is not the same for all European countries, where the average engine capacity is 1600 cc, so for vehicles presented, for example in Portugal, the devaluation is well over 25% in almost all of them. Nobody here wants a car that consumes more than 8 liters. V6, V8, etc. vehicles crowd the stands due to lack of interested parties.
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JohnSmith-pn2vl
actually ev's hold their value way better than anything else, audi R8 is the king of depreciation with 80% in the first year.
we live in a special time, used ice cars are as expensive as ever, this is because of ev's, corona, chip crisis etc.
people have no trust in batteries, they basically trust them the same as a cell phone and think they just die after a couple years, but this is not true.
it will take another decade or even longer for people to learn that ev's actually never depreciate like every ice at some point.
a new battery will be so cheap to make it viable anyway, and anyway, the current batteries should last in the worst case about double the mileage of an average ice car.
meaning like a useable range, they still wont be dead tho.
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actually ev's hold their value way better than anything else, audi R8 is the king of depreciation with 80% in the first year.
we live in a special time, used ice cars are as expensive as ever, this is because of ev's, corona, chip crisis etc.
people have no trust in batteries, they basically trust them the same as a cell phone and think they just die after a couple years, but this is not true.
it will take another decade or even longer for people to learn that ev's actually never depreciate like every ice at some point.
a new battery will be so cheap to make it viable anyway, and anyway, the current batteries should last in the worst case about double the mileage of an average ice car.
meaning like a useable range, they still wont be dead tho.
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Roll_the_Bones
Ignoring the %age drops, the actual money value of similar used cars, is, well, similar. Regardless of being EV, petrol, diesel, the secondhand market doesn't discriminate one way or the other, a car's a car, right Most EVs are bought as company cars, so although more expensive, they cost the users less in tax, so people choose them. Then, when they hit the used market after 4 yrs on a lease, they're priced about the same as non-EVs, encouraging more mainstream adoption by the buying public. That's the plan. If you buy a new EV privately, the point is, don't sell it, keep it. The first big wave of ex-company EVs are now hitting the used market, so re-sale values are bound to tank.
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Ignoring the %age drops, the actual money value of similar used cars, is, well, similar. Regardless of being EV, petrol, diesel, the secondhand market doesn't discriminate one way or the other, a car's a car, right Most EVs are bought as company cars, so although more expensive, they cost the users less in tax, so people choose them. Then, when they hit the used market after 4 yrs on a lease, they're priced about the same as non-EVs, encouraging more mainstream adoption by the buying public. That's the plan. If you buy a new EV privately, the point is, don't sell it, keep it. The first big wave of ex-company EVs are now hitting the used market, so re-sale values are bound to tank.
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drxym
I think there's a simple explanation for the price drops - the price of new EVs are dropping and these second hand cars can't compete with cheaper and greater range of brand new cars. Maybe it's just particularly expensive EVs, from German automotive companies are finding it hard to compete with cars costing half as much like Teslas. At some point the situation will level off but EVs are still dropping in price and will continue to do so as batteries get cheaper. Even so, it's also clear from people like RSymons that he thinks the 2nd hand market is doing well in terms of demand. That said, anyone in the market for a 2nd hand EV will get some bargains.
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I think there's a simple explanation for the price drops - the price of new EVs are dropping and these second hand cars can't compete with cheaper and greater range of brand new cars. Maybe it's just particularly expensive EVs, from German automotive companies are finding it hard to compete with cars costing half as much like Teslas. At some point the situation will level off but EVs are still dropping in price and will continue to do so as batteries get cheaper. Even so, it's also clear from people like RSymons that he thinks the 2nd hand market is doing well in terms of demand. That said, anyone in the market for a 2nd hand EV will get some bargains.
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simonreeves2017
Hi Mat, greetings from Oxford. Buying a new car and selling it after just one year is financial lunacy! Depreciation is an inverse exponential curve; in other words, a car loses the biggest proportion of its value early in its life, the rate of depreciation falls year on year. The best financial option is to keep you car for longer. This is basic maths. There is a silly fascination with hybrids at the moment, but I think this will change as customers realise what a rubbish choice these represent.
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Hi Mat, greetings from Oxford. Buying a new car and selling it after just one year is financial lunacy! Depreciation is an inverse exponential curve; in other words, a car loses the biggest proportion of its value early in its life, the rate of depreciation falls year on year. The best financial option is to keep you car for longer. This is basic maths. There is a silly fascination with hybrids at the moment, but I think this will change as customers realise what a rubbish choice these represent.
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jamiestocksjs
i am going to say one thing, bloody pointless video as anyone with a brain pcp, s an electric car, if you buy one outright you need locking up in a nutters home, you hand it back at the end or when you have paid over half the total amount payable, todays car ownership is a payment, , how much do we think petrol cars are going to drop once electric cars take over and fossil fuel dinosaurs are outlawed, wakey wakey matt watson you should know better!
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i am going to say one thing, bloody pointless video as anyone with a brain pcp, s an electric car, if you buy one outright you need locking up in a nutters home, you hand it back at the end or when you have paid over half the total amount payable, todays car ownership is a payment, , how much do we think petrol cars are going to drop once electric cars take over and fossil fuel dinosaurs are outlawed, wakey wakey matt watson you should know better!
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ricequackers
Pretty clear that the market wants hybrids, not EVs. Unfortunately, dumb government legislation will soon require manufacturers to ensure a certain proportion of sales are EVs or face hefty fines, even if no one actually wants to buy them. It's a very communist approach to encouraging more EV sales, but then again we have a political establishment that doesn't believe in the basic principles of market supply and demand.
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Pretty clear that the market wants hybrids, not EVs. Unfortunately, dumb government legislation will soon require manufacturers to ensure a certain proportion of sales are EVs or face hefty fines, even if no one actually wants to buy them. It's a very communist approach to encouraging more EV sales, but then again we have a political establishment that doesn't believe in the basic principles of market supply and demand.
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mrdutch484
Please do the same video in 5 years from now. I guess it will be the ICE cars plunging in value by then.
EV's are a complete new way of manufacturing. The more EV's a factory can build the cheaper they can make them (Wright's Law, so second hand cars will drop even faster right now. But in 5 years EV's are so much cheaper to buy than ICE cars. This will make the secondhand market for ICE cars plunge.
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Please do the same video in 5 years from now. I guess it will be the ICE cars plunging in value by then.
EV's are a complete new way of manufacturing. The more EV's a factory can build the cheaper they can make them (Wright's Law, so second hand cars will drop even faster right now. But in 5 years EV's are so much cheaper to buy than ICE cars. This will make the secondhand market for ICE cars plunge.
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teitpoulsen7183
Key issue for EV second hand prices is that the innovation and cost reductions for newly introduced cars is so substantial that a new EV is relatively more attractive then the previous version. Interesting that Tesla did not fall into the bottom 10 even with the new car price reductions. Pretty key feature they have is the continuous Over The Air upgrades keeping them pretty fresh.
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Key issue for EV second hand prices is that the innovation and cost reductions for newly introduced cars is so substantial that a new EV is relatively more attractive then the previous version. Interesting that Tesla did not fall into the bottom 10 even with the new car price reductions. Pretty key feature they have is the continuous Over The Air upgrades keeping them pretty fresh.
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TheTunneys
This is dumb, comparing depreciation of a product that is increasing in manufacturing volume, thus volumes of scale decrease costs.
Why not do it for flat screen TVs Phones They would all be SHOCKING!
I know most car people are dinosaurs and love everything 'staying the same' but as I would have said to you 100 years ago SURE, STICK WITH YOUR HORSE.
So So Dumb.
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This is dumb, comparing depreciation of a product that is increasing in manufacturing volume, thus volumes of scale decrease costs.
Why not do it for flat screen TVs Phones They would all be SHOCKING!
I know most car people are dinosaurs and love everything 'staying the same' but as I would have said to you 100 years ago SURE, STICK WITH YOUR HORSE.
So So Dumb.
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gw4182
What is NOT mentioned here - slapped wrist Matt is the following.
In April 2023 there was a chronic shortage of good EVs secondhand and used prices were up very high.
However now there are plenty in the market so their used price is way more realistic.
But there has always been petrol cars in the market thus nothing has really changed.
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What is NOT mentioned here - slapped wrist Matt is the following.
In April 2023 there was a chronic shortage of good EVs secondhand and used prices were up very high.
However now there are plenty in the market so their used price is way more realistic.
But there has always been petrol cars in the market thus nothing has really changed.
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ldsman1global587
As for the mobile phones now you can replace the battery relatively cheap, this will happen soon with the electric cars. If you could replace the battery with a new for a reasonable price, it would change the picture. People now most afraid of the battery degradation, that is why the big price loss, but it will change in the near future.
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As for the mobile phones now you can replace the battery relatively cheap, this will happen soon with the electric cars. If you could replace the battery with a new for a reasonable price, it would change the picture. People now most afraid of the battery degradation, that is why the big price loss, but it will change in the near future.
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Burz69
Wow. And i was thinking buying a car was an investment
Reality check. EVs have depreciated more because they were overpriced.
2nd reality check. Chinese imports will drive prices down further in the year ahead. All used cars will deprecate at a higher rate than we have seen before. High depreciaton is coming for all. Enjoy.
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Wow. And i was thinking buying a car was an investment
Reality check. EVs have depreciated more because they were overpriced.
2nd reality check. Chinese imports will drive prices down further in the year ahead. All used cars will deprecate at a higher rate than we have seen before. High depreciaton is coming for all. Enjoy.
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onecookieboy
Just wait until the EV's are 5 years old, they will be worth 20% of the new price, and by 10 years old you will have to pay someone to take them away to be recycled. People are just catching on to this and that's why used prices are tumbling and people are changing their mind about buying new, they make no financial sense.
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Just wait until the EV's are 5 years old, they will be worth 20% of the new price, and by 10 years old you will have to pay someone to take them away to be recycled. People are just catching on to this and that's why used prices are tumbling and people are changing their mind about buying new, they make no financial sense.
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cessealbeach
Very Accurate! In the US tesla has hit rock bottom, 3 year old model 3 with 30K miles for around $15K, model Y Dual under $24K, Nobody wants these EV's, Once you own for the first Time, Thats the last time, Insurance cost on these EV; s are Double the amount of gasoline cars, I use to own a Y, that was my Last EV,
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Very Accurate! In the US tesla has hit rock bottom, 3 year old model 3 with 30K miles for around $15K, model Y Dual under $24K, Nobody wants these EV's, Once you own for the first Time, Thats the last time, Insurance cost on these EV; s are Double the amount of gasoline cars, I use to own a Y, that was my Last EV,
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pittsy98
My i4 M50 arrive last June. I waited 19 months for that delivery! You just couldn’t get hold of new EV’s a year ago. I was speaking to the dealership the other day and the waiting time is now just 5-6 months. The manufacturers have caught up with demand so the used car prices have fallen. Simple really.
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My i4 M50 arrive last June. I waited 19 months for that delivery! You just couldn’t get hold of new EV’s a year ago. I was speaking to the dealership the other day and the waiting time is now just 5-6 months. The manufacturers have caught up with demand so the used car prices have fallen. Simple really.
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sorinelpustiu5674
EVs dropped due to Tesla slashing their prices by 50%
Imagine if the BMW 3 series dropped by 50%. what would happen to ICE car prices
well let's say the video wouldn't be about EVs
So stop wondering why EV prices are plummeting, they're not.
It's just Tesla messing with their competition
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EVs dropped due to Tesla slashing their prices by 50%
Imagine if the BMW 3 series dropped by 50%. what would happen to ICE car prices
well let's say the video wouldn't be about EVs
So stop wondering why EV prices are plummeting, they're not.
It's just Tesla messing with their competition
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