Crazy low residuals?

[Rooster6655]

No desire for EVs or market flooded.

There are a lot of 2nd hand deal non Tesla EVs around which make sense for a lot of people who may realise they don't need the range of a Tesla and don't need to use superchargers, there are a lot of branded dealers like Audi/VW/Honda who must have p/x Teslas and are selling on them on Autotrader I doubt many purchased them in the current climate at auction to resale

I still think that when the the tabloids move on from the negative press, energy prices settle. and the market stabilises the fact that they are some of the best EV's around means there will be a good market long term once the general public warms to them. so in 3+years when I come to sell mine I am expecting to get a "normal" level of depreciation for it. My last Tesla had 8% depreciation over 3 years which is as crazy the other way as the falls in prices are now. I won on that one. those who bought later and now need to sell are suffering the flip side which is obviously very upsetting for them but long term I see no reason why it will not settle down.

Yes over the longer term the average depreciation will most definitely settle down say over a 5-10 year period, short term there are many variables that will affect the price such as those buying in December last year a MY LR £57k (I believe) and trying to sell now it now when a new one is £47k (Albeit temporarily)

 

[DrJFoster]

Sadly I don't think the mainstream press have really got going yet on potential negative press. We know they will over-blow things in the name of a good headline, so we can expect to see the picture of some sad looking person talking about how the lack of parking sensor resulted in them accidently crushing their 60 year garden gnome collection.

 

[yessuz]

Sadly I don't think the mainstream press have really got going yet on potential negative press. We know they will over-blow things in the name of a good headline, so we can expect to see the picture of some sad looking person talking about how the lack of parking sensor resulted in them accidently crushing their 60 year garden gnome collection.

All that would change if tesla would start buying some ads

 

[Utumno]

Maybe 10 main dealers said the same

View attachment 950895

Honestly, this is the dealership channel telling you they can't be arsed, nothing more.

If a dealer can't wipe a gritty rag over paintwork and flip it in two weeks, they'd rather you went to to a factor like WBAC or Motorway to save them the trouble of doing it.

 

[DoricJim]

Well, I was on PCP but before the recent craziness decided to flip it to a straight bank loan last year on a low APR. Will be paid in a few years with around £1k interest all in and I intend to get maximum value out of this car. Assuming my circumstances don’t change, keep it for the full 8y battery warranty period and not worry about residuals.

As I’ve posted elsewhere, many brands historically faced around 70% depreciation in the first 3y (e.g. Vauxhalls, Fords) and was seen as normal.

If you bought a Tesla M3 or Y expecting anything else (it is not a desirable luxury car but a “white goods” car albeit with a market leading drivetrain) then more fool you.

 

[PITA]

...keep it for the full 8y battery warranty period and not worry about residuals..

Well, I've bought a full Momo Nomex Fireproof Suit... and plan to take it past 8 years, maybe up to 10.3... like Tom Cruise did in Top Gun Maverick.

 

[Jason71]

Well, I've bought a full Momo Nomex Fireproof Suit... and plan to take it past 8 years, maybe up to 10.3... like Tom Cruise did in Top Gun Maverick.

Mine goes up to eleven

 

[UrbanSplash]

Well, I was on PCP but before the recent craziness decided to flip it to a straight bank loan last year on a low APR. Will be paid in a few years with around £1k interest all in and I intend to get maximum value out of this car. Assuming my circumstances don’t change, keep it for the full 8y battery warranty period and not worry about residuals.

As I’ve posted elsewhere, many brands historically faced around 70% depreciation in the first 3y (e.g. Vauxhalls, Fords) and was seen as normal.

If you bought a Tesla M3 or Y expecting anything else (it is not a desirable luxury car but a “white goods” car albeit with a market leading drivetrain) then more fool you.

The point is you can’t actually part ex a 3 or y currently. Neither have I had any car shed nearly £20k in a year with a list price of nearly £60k. Does that fit into your ‘70% depreciation in 3 years’ ?

 

[Tony Hoyle]

You just have to find the right dealers.. when I sold my leaf nobody locally would touch it. Went through Motorway and they found a dealer in a few days that not only gave a good price, he already had a buyer lined up..

i'd be happy if I sold a car for 50% of what I paid for it in 3 years.. got lucky with the 3 as second hand prices were high and got about 80%.. i'm under no illusions that will be repeated with the Y.

 

[DoricJim]

The point is you can’t actually part ex a 3 or y currently. Neither have I had any car shed nearly £20k in a year with a list price of nearly £60k. Does that fit into your ‘70% depreciation in 3 years’ ?

Losing 20k from a 60k car in a year is not an unsurprising amount for mass market/manufactured car like a 3 or Y. I bought an ex demo BMW about 3 years ago for just over half its original retail price and it was only just over 6 months old. Have also had many brand new cars that lost over a third in the first year. Part and parcel of new car ownership.

As for trade in, can’t say as I’m not trying to do so at the moment but by the sounds of if others have had more success.

 

[GeorgeSymonds]

Losing 20k from a 60k car in a year is not an unsurprising amount for mass market/manufactured car like a 3 or Y. I bought an ex demo BMW about 3 years ago for just over half its original retail price and it was only just over 6 months old. Have also had many brand new cars that lost over a third in the first year. Part and parcel of new car ownership.

As for trade in, can’t say as I’m not trying to do so at the moment but by the sounds of if others have had more success.

I've bought ex demo BMWs in the past for large sums below the list price, but then I could have bought the same car new, also with a large, but not as large discount below list. I know Tesla are discounting now, but if we take the BMW example, a 60k list car can often be bought for 54k (10% off), and then within the first year it might drop to 48k, another 10% - it looks like a 20% fall but in reality its a 10% fall on what was paid. I always thought that wa the real reason why they always appeared to have a large first year depreciation as it was based lined on list and not tyoical purchase price., In other words, it's rarely as bad as the headline figures make out because of the initial discounting,

Teslas do seem to be down a lot in a year, I paid 55k for my MY just over a year ago, cheapest around are 41k -42k for lowish miles, as a part ex I'd be lucky to get 38k, so thats a fall of 17k in a year or 30% - that is some fall.

Either way, it's not a race to the bottom, and if we can't agree, I think we need to agree to disagree on whether its to be expected or not.

 

[qwickshot]

There are some absolute bargains out there at the moment in the used EV space. Look at the prices of used etron 55’s, iPace etc.

Sure the range isn’t class leading but boy have they depreciated a whole lot.

64kwh Hyundai Kona’s on a 70 plate are going for about 16k now. That’s a lot of range for the cash. They would have originally sold for about £35k.

If a Kona fit my needs (it did until very recently), I’d buy it over a similar aged used model 3 standard range which would be considerably more expensive.

 

[MkPotato]

I suppose there’s an argument that 3s and Ys will suffer a steep initial depreciation curve (which we’re definitely seeing), but will then flatten out into a 3/4yr+ shallower one. Teslas have proven to be good for 100k miles+, and are mechanically simple. Buying a 3/4 year old is probably quite a good move. Buying a new one, like most traditional ICE cars, going to be expensive in terms of depreciation.

 

[qwickshot]

I’m not really sure why the majority of the posters in this thread seem to think this is unique to tesla. Particularly the ‘I’m never buying a tesla again because of depreciation’ brigade.

Seriously, take a look at pretty much any used EV on the market right now. They are all following the traditional depreciation curve for a car.

It’s almost like crazy energy prices and a lack of education about how cheaply you can actually charge one up on an overnight rate is having significant impact compared to where we were in early 2020 using Leaf and Zoe as a benchmark*.

*Sorry S and X owners but really these are the only two EVs that has been around for a long time at this point and catered for the mass market in somewhat reasonable volumes.

Like I said, have a look at used etron, iPace and other stuff that came out in the same era.

Here is another example - 70 plate ID.3 58kwh with under 40k on the clock - £18k. In terms of actual cost, that car went almost head to head with a model 3 SR at the time. The ID.3 was unobtainable for a good 18 months from launch.

Cheapest model 3 on auto trader from a dealer has an over 100k on the clock and is £22k.

There are more ID.3’s (some new) for sale on Autotrader at the moment than Model 3’s despite there being an order of magnitude more model 3’s on the road.

There are 350 used Audi etrons (compared to 590 model 3) available for sale on Autotrader. The etron 55 can be had for under £30k now on a 19 plate (less if you don’t mind the 50 with less range). Pretty sure they were £80k list back in the day.

 

[Jerryjal]

Got a Tesla trade in value for mine in January and it was £56k, roll forward 6 months and 14,000 miles and it is now £23k!
Was possibly thinking of moving to a MY however not now, I know that I could and would get more by selling privately but that is a hell of a drop.

 

[MkPotato]

Got a Tesla trade in value for mine in January and it was £56k, roll forward 6 months and 14,000 miles and it is now £23k!
Was possibly thinking of moving to a MY however not now, I know that I could and would get more by selling privately but that is a hell of a drop.

In some ways Tesla were artificially supporting the used market in ‘22. There was no way used cars were going to keep retaining such a high residual value in the long run (particularly as they ramped up production of the 3 and Y), and they were offering insane trade ins for 2/3 yr old cars. Arguably, at the time (with the global supply chain issues), that’s what the cars were “worth” according to the market, but anyone could see it would never last. Dropping prices last year effectively deflated what remained of that bubble. Normal service has resumed - cars lose money.

 

[GeorgeSymonds]

I’m not really sure why the majority of the posters in this thread seem to think this is unique to tesla. Particularly the ‘I’m never buying a tesla again because of depreciation’ brigade.

Seriously, take a look at pretty much any used EV on the market right now. They are all following the traditional depreciation curve for a car.

It’s almost like crazy energy prices and a lack of education about how cheaply you can actually charge one up on an overnight rate is having significant impact compared to where we were in early 2020 using Leaf and Zoe as a benchmark*.

*Sorry S and X owners but really these are the only two EVs that has been around for a long time at this point and catered for the mass market in somewhat reasonable volumes.

Like I said, have a look at used etron, iPace and other stuff that came out in the same era.

Here is another example - 70 plate ID.3 58kwh with under 40k on the clock - £18k. In terms of actual cost, that car went almost head to head with a model 3 SR at the time. The ID.3 was unobtainable for a good 18 months from launch.

Cheapest model 3 on auto trader from a dealer has an over 100k on the clock and is £22k.

There are more ID.3’s (some new) for sale on Autotrader at the moment than Model 3’s despite there being an order of magnitude more model 3’s on the road.

There are 350 used Audi etrons (compared to 590 model 3) available for sale on Autotrader. The etron 55 can be had for under £30k now on a 19 plate (less if you don’t mind the 50 with less range). Pretty sure they were £80k list back in the day.

I don't disagree with you in principle. although we could also look back on here to a year ago where a lot of people were talking about how little their car had depreciated and the fantastic residuals which set an expectation, even if it was uniwise to think it would continue. So I kind of think we're all correct:

- depreciation should be expected if we think rationally about it, Teslas are not some magical depreciation defying item
- depreciation has been much more than the previous trend and more than many peoples expectation
- Tesla haven't helped the residuals. not that it's their job to, although it does hurt themselves in the long run.

So if you stretched yourself to get into a Tesla on the belief/expectation/hope that depreciation would be relatively low, however wise or not that was, you'll be hurting right now, and like most things in life, its the comparison to expectation that decides whether we're happy or sad about something, rather than the absolute measurement.

 

[UrbanSplash]

Perhaps the issue is Tesla themselves. They won’t think twice about lowering list prices significantly (and increasing them of course). No other manufacturers seem to be so ‘knee jerk’. That volatility is scaring the market for used Teslas.

 

[PITA]

The only real losers, are those unfortunate enough to have to sell their cars with loans outstanding.

For me, I paid £61,000 for my Tesla and I'm really happy with it. Just got to keep it now for 20 years

Saving £3,000 per year in Petrol.

 

[Rooster6655]

I've bought ex demo BMWs in the past for large sums below the list price, but then I could have bought the same car new, also with a large, but not as large discount below list. I know Tesla are discounting now, but if we take the BMW example, a 60k list car can often be bought for 54k (10% off), and then within the first year it might drop to 48k, another 10% - it looks like a 20% fall but in reality its a 10% fall on what was paid. I always thought that wa the real reason why they always appeared to have a large first year depreciation as it was based lined on list and not tyoical purchase price., In other words, it's rarely as bad as the headline figures make out because of the initial discounting,

Yes for a long while this was what set Tesla apart when there wasn't so much variation and the "No discounts" policy hence everyone buying new would be paying the same full price, now they are offering discounts it has a direct effect on used car prices.