The Fall of Electric Car Prices

One important thing you didn't touch on, the fact that most of these cars can be purchased for way below MSRP when they're new. A few months ago, we leased a 2024 Mini Cooper electric with an MSRP of $35k. After dealer discounts and factory incentives, we paid only $22,800 for the car. Looking at your example, a 2-year-old Mini-EV with 40k miles sells for about $21k. That means the car depreciated less than a grand a year. That's better depreciation than 95% of the vehicles featured on the channel.

Nobody disagrees that these EVs have low resale relative to MSRP, but when you can purchase most EVs for over $10k off window sticker, they may not be such a bad deal.

Mercedes eqs is like 55-60k already,

Just imagine in 5 years these cars will be like 20k

The prices of the electric clunkers is still too high. The Consumers Reports described them as the most unreliable category of cars, opposite to the most reliable category: the hybrids.

I gotta say, I don't like the ID.4 but the conversation will change once the price drops to $19k with 30k miles😂

It's so hard to know what numbers are real though. MSRP is before destination and various dealer add-ons that might or might not be waived. Used car listing prices have apparently become pretty fake in recent years with many dealers having silent additional costs beyond what they listed. Many of the cars that appear to show high depreciation now were actually purchased during the peak demand mania - meaning we see a mix of the depreciation specific to a car versus the overall shift in the market posture.

I wonder what these cars will sell for in a couple of years when the battery may be perceived as "old".

EVs blow and the dealers hate them.

Electric cars are a garbage technology. Just because it can be done doesn't make it a good idea. They are not the future. Gas will be around for decades.

Picked up a used 2022 F150 lightning Lariet extended range 15,000 miles with all the options and clean title in Dec. MSRP $83K for $58,500 and they threw in the mobile charger. Will work great for my construction business as the commuter rig along side my F250 Super Duty diesel for all the heavy towing beyond 10K pounds.
I'm extremely happy with it so far !

Eventually the gub’mint is going to need to “recoup” the “losses” in not getting fuel taxes on the EVs and will pass surcharges that’ll be tacked on at registration time. That’ll hurt EV prices indirectly and the dollar amount will be shocking to many. They’ll claim they can’t maintain the roads without doing it… not that the roads are ever really maintained… but it’s coming sooner or later. The begging like it’s all not funny money, will begin…

A Porsche Taycan in Australia with 32000 kilometers goes for $160000 AUD

Yu mean The Fall of Electric Cars😂

I wonder how the EV market (in the U.S) will look in a few years when people realize they’re losing Jaguar type of money every year on their new EV.

It makes it so unappealing to want to consider a new EV unless you’re keeping the car till the wheels fall off or you’re flushed with cash.

People EVs are the greatest hoax in recent memory.

Ont thing that bothered me is that the video has no context on how much depreciation is normal or the unique market that existed in 2020-22. Average cars in average years lose around 8-9%/year. For luxury cars it tends to be about 10-20%/year. A $100k BMW 750 you can expect to be in the $50-$70k after 18 month in historic market conditions. I leased BMWs for years. The lease always understated the depreciation by a large margin. However 2020-22 were odd years in which manufacturing was constrained. Interest rates were at historic lows. This led to high new car prices. However, by 2023 manufacturing was more or less back leading to competition in the new car market. This (and interest rates) depressed both new and used car prices. Here's an example of how context matters. You see Rav4 Primes holding their value well compared to MSRP. The trouble is that anyone who bought a Rav4 Prime in my area in 2022-23 paid well above MSRP. When you look at what you can get for your Rav 4 Prime versus what you actually paid, it's still good but not great. Hertz is another great example. Hertz purchased the M3 from Tesla at a "reported" $29,000/unit average. Hertz got credits and incentives of at least $8k/car. They are now "dumping" the high mileage cars for about their original cost. Hertz could be dropping EVs because the customers don't like them or they cost too much---OR Hertz could be dumping EVs because they can't get a good deal on a new EV and they can on new ICE cars.

Thats because its not really a car.....its a consumer electronics device and should be viewed like that.

Most EVs being somewhat of a luxury product (yeah yeah i know it's not technically), seem to depreciate about the same as run of the mill luxury SUVs like the Q5, X3 and GLC. It's what I'd expect and why it probably makes sense to lease one like you say.

I purchased a LRSM 2023 Polestar 2 in mid 2023. After four months and 6274km, I traded the thing in. Charging infrastructure is not sufficient and the car had some issues. This current battery tech is too heavy and too inconsistent to fast charge. It sucks

That's great news. Hopefully they extend their deadline on ICE vehicles..

German perspective: we had insane used car prices just like you had. Only 2 years later. Lost a solid amount of money just before prices really picked up. But bought a brand new EV for 2/3 msrp. That price I could ask for 2 years with no depreciation. Nothing was available. Demand and incentives were high and interest low. Now the incentives are gone and used prices have been coming down hard for a year. Partially because financing is just way too expensive now. Partially because models and availability have increased. And conservative parties sow some doubt because it may look good during the European elections. Just to then not follow up on it because the investments have been made. Bottom line is: for buyers with money saved up it's a great time to buy an electric car. Long term financing still isn't happening with that interest. Leasing seems to become the battlefield all makers will meet on now. Is that similar to the US?

If you have your own power outlet it's a no brainer really.

I will NEVER buy an electric car.

Not usually this crude but did almost mess my jeans at the tidal.

Please release the ID4 video!

1. Prices of everything are dropping from the post-COVID spikes.
2. Prices of EVs are dropping faster because of Wright's Law and basic supply and demand principles; there are more in production and more on the used market.
3. It was said that a Tesla Model 3 was cheaper than a Toyota Camry, but this was with subsidies. Some people were trying to sell their Tesla for less than MSRP, but higher than post-subsidies; ex: MSRP $37k, $27k post-subsides, used car price $34k. It didn't even make sense. If the car can be bought for $27k then selling it for $24k is a $3k drop in price, not a $13k drop in price, relative to MSRP pre-subsidies. The car dropped 11%, not 35%.
4. Tesla and others have the Highland and other options, so early adopters and unloading models right now to buy the latest tech, so they are taking a hit.

Ev is dead hydrogen will take over in 20 years lithium is not sustainable they will be bricks also the electricity that supply’s your home to plug in your ev is ran on burning oil / fuel might as well wait for hydrogen if you want an ev , during a natural disaster power outage just for a few days the teslas were left bricked at a charging station 😂

EV market is hurting right now because most people are waking up to the fallacy that the whole thing is: from unreliability issues to false claims to horrible infrastructure to support and charge these pieces of garbage. There are so many nuances to consider other than not having an engine to maintain that these cars ought to be just given away and even then I wouldn't take it.

I was about swoop one of the hertz Model 3’s. But after running the numbers (insurance, registration/ supercharging), it’s still not with the upgrade from an F10 528i NA

You said the Model 3 EXT which is not something that exists, you showed a Model 3 SR+ which is like $38k. Enhanced AP can be added to anything for 6K and none of the old rentals will have it. You can extend the warranty through Tesla for a couple grand, the battery has a 100k warranty. A used EV is a great deal right now.

The Taycan is the real champ. You can find like original 200k msrp ones that are lightly used for like 90k nuts. Plus once the refresh one hits the streets they will tank more. Who is ready for a low mile 3 yr old Taycan Turbo S for like 50k lol

Some of them percentages wise looks big compared to msrp couple years ago, but if u look at ix at $80k used, model X with base model with $7500 credit still cheaper. So buying used still not really that cheap since whole bunch new stuff are cheaper

I would rather see the videos of the vehicles you guys hate VS the ones you love. Maybe that is an odd opinion, but those would be more valuable to me.

I can't imagine people spend 110K on that BMW iX. You can get a M5 for that money...

Pls do video on resale values of used PHEVs. Thanks

I think that tax credits and rebates/incentives are often built in to used car prices. But yeah, it is not a great time to try to sell a lightly used EV.

I actually don't mind seeing this because I don't think that people should buy cars as often as they do. If I buy a car, I expect to keep it for at least 10 years - and at that point depreciation doesn't matter as much because nearly every car will have depreciated a lot.

The auto industry is a joke.

Just appraised a 22 Taycan Sport Turismo yesterday. 22k mls, $145k MSRP. Porsche dealer hit it at $65k. 😮

EVs are a disposable vehicle.
The environment will be even worse in the next decades because of all these useless EVs. So much pollution during the manufacturing process and the battery gets old really quickly (7-10years).

All I have to say about it is, RIP Bozos!

So basically, like pre-Covid ICE depreciation?

BMW’s loss has as much to do with its fugly front

Toyota Camry hybrid. 675 mile range.

those iX's are so butt ugly. no wonder they're plummeting in value, even if the range is more than usable.

i'm going to be 5yrs in on an audi etron (in july) with 55k on the ODO and i've been happy with my purchase in spite of the loss of value. i didn't buy it to sell it, i bought it because i cared about the environmental benefits of not using gasoline, the level of comfort, and the way it looked, and it's decently fast enough even though there are many faster options now.

people act like this is some news worthy thing, its a new product, there is fast development that make new products better sooner.
ICE car prices droped the same way 100 years ago, just because the car models changed fast, new lights, new bumbers, heck even a new model year color...

This has really always been the case with EVs, especially when there are heavy incentives attached to new purchases and leases. The constantly evolving tech and capability over what you get with a conventional gasser really diminishes the value of even a two or three year old example, be it in range or now NACS/Supercharger access. My leased 2013 Fiat 500e was worth probably $10-$15K off of a $32K sticker once my heavily subsidized lease was up, and that was universal across everything on the market until the Model 3 hit the market for the first time. If you want new, there's no logic in doing anything but leasing an EV anytime soon so all the risk is offloaded.

I would only use an electric car as a golf cart, not a serious vehicle. Goldilocks analogy....not too hot...not too cold...only runs when just nice!

I’m considering a used taycan or wait for the facelift with better range?

mach e and lucid depreciation has been the most severe i’ve observed lol

Release the videos you made even if you hated the car. Love the content of the channel.

This video comes off as a hit-piece against EVs. News flash: cars depreciate. The interesting facts come into play about how much one model depreciates in percentage over another, or how one segment compares to another (SUVs vs. cars vs. performance cars), so I was hoping to hear some comparisons to gas cars in similar price points or segments, but that didn't seem to be the goal of the video.

High interest rates affect the effective price of all cars, in a linear fashion proportional to their price. This isn't unique to EVs. Another reason to believe that there is an inherent bias against EVs and that the primary goal of the video was to give the EV haters reason to nod their heads and say "I knew it!" while trying to stay balanced on their barstools.

You mention that there is a battery replacement program for the Mach-E? Ummm, I don't think that's a thing. Maybe you're thinking of the High Voltage Junction Box recall? This isn't a battery replacement like Chevy had to do with the Bolt, it's a recall to replace a component that has been found to fail in 107 cars (reference: NHTSA 23V-687). Very different from a full battery replacement, don't you think? Another reason why this video comes off as a "we told you EVs suck, and here's proof" type of video.

EVs are in their infancy as a technology, and they are much more like smartphones than they are like cars of the past. Unfortunately, that means that there are growing pains (common with many new car models, whether they are gas or EV), and that they are subject to rapid change in features and capabilities. This makes older models less valuable in a very short amount of time. In that you did have a nugget of good advice: leasing may be a better option. If a good lease deal can be negotiated, you're guaranteed a value at the end of the lease instead of gambling when the time comes that you want to trade it in on the newer phone, err, car. If you want to keep it for 5-8 years, then trade-in value really doesn't come into play as much. But given the rate of change in the segment, it's hard to think about keeping an EV as long as I've kept my cars in the past (although my cell phone is now 3 years old...).

If you didn't intend for this video to be a hit piece, you may want to take another look...

I’m surprised you didn’t mention how much it costs to replace the battery in the Ioniq 5.

@savagegeese you should look it up, in Canada two dealers gave people quotes of $56,000CDN, one in BC and one in ON.

I bet that the Ioniq 5 is actually with $50 with that. Hyundai had to even do damage control but fucked it up spectacularly.