How will non-Tesla EVs retain value?

[Hiline]

It is incredible that Tesla units several years old are selling at the same price levels as new vehicles. Do you all think that other popular models such as the Ioniq 5 and the EV6 will retain most of their value after a couple of years? Or are they going to depreciate more similarly to ICE vehicles?

 

[glide]

It is incredible that Tesla units several years old are selling at the same price levels as new vehicles. Do you all think that other popular models such as the Ioniq 5 and the EV6 will retain most of their value after a couple of years? Or are they going to depreciate more similarly to ICE vehicles?

Keep in mind, up until very recently, there were Teslas that depreciated by 50% over the course of 3 years’ time (P85D).

This is all just a temporary bubble.

 

[zecar]

Keep in mind, up until very recently, there were Teslas that depreciated by 50% over the course of 3 years’ time (P85D).

This is all just a temporary bubble.

It will be interesting to see the depth of the $60K Model Y market.

 

[Undecided_2]

It’s a bubble. But I believe second hand EVs will gradually maintain or increase in value as the date closes in for no new ICE car sales draws close. There are plenty of people that will want a certain type of EV but can’t afford a 40-60k new one.

 

[wycolo]

But now it is better known that Tesla batteries do in fact last a long time past their 8 year warranty.
Even the steel-bodied Teslas will be good for 20 years or more.
--

 

[glide]

But now it is better known that Tesla batteries do in fact last a long time past their 8 year warranty.
Even the steel-bodied Teslas will be good for 20 years or more.
--

And this assumption is based on….

There isn’t a single steel-bodied Tesla that is 8 years old on the road.

 

[RobStark]

Compelling EVs will have good resale value.

After the current supply chain shortages pass crappy EVs will have poor resale value.

I am looking at you LEAF and Bolt.

 

[mangrove79]

I seriously doubt the resale value for the likes of Ioniq 5 and EV6 will hold up over time. I get the feeling that Hyundai and Kia don’t really have a strategy for their vision of the EV age, but simply following other’s footsteps. They’re rushing to be the earliest followers, getting something out of the door quickly. Toyota and Lexus on the other hand is taking its time to develop a good platform that’s dedicated to their vision of EV. Their reputation will also help them establish a foothold in the market.

 

[FOOLSLFDRVNG]

Factor in Robo taxis and they will be worth 22 times more.

 

[jjrandorin]

If one is planning, one should plan on any car they buy following a fairly standard depreciation curve. This market right now is a bubble, and is not sustainable. Most cars depreciate.

This "high resale value" of teslas applied mostly to model 3s and Ys, there are lots of early adopter model S and X owners who "experienced normal luxury car depreciation".

About hyundai / kia as a brand, those cars tend to do somewhat poorly with depreciation, and I would expect that to be similar with their EVs. Toyota / Honda cars usually are lower on the depreciation scale than some other brands, and once they get serious about EVs, I would expect that to continue.

What I dont think will happen, though, is "this current market continues like it is for the forseeable future" for used cars in general.

 

[RobStark]

Hyundai's e-gmp platform is a solid 800v platform.

Toyota's e-TNGA is giving us 225-250 EPA mile EVs at a $42k-?$70k price point. That sucks.

Honda is piggy backing onto GM's Ultium platform because they are couple years away from being a couple of years away.

 

[jjrandorin]

Hyundai's e-gmp platform is a solid 800v platform.

Toyota's e-TNGA is giving us 225-250 EPA mile EVs at a $42k-?$70k price point. That sucks.

Honda is piggy backing onto GM's Ultium platform because they are couple years away from being a couple of years away.

Relative depreciation, many times, has to do more with perception than reality. Hyundai has been making solid cars for quite a long time now, but it doesnt change the fact that, in the US anyway, people associate them with "budget".

The kia stinger was a great package in the sporty sedan category, out "BMW ing" BMW in most of the categories that (supposedly) "drivers" wanted. Kia poached people from BMW to lead the development of that car, and it looked great, and drove great by all accounts. Kia tried to sell it for the same price as BMW 3 series, and buyers simply were not having it.

A LOT of people are going to buy a toyota or honday, "because its a toyota / honda". Its the same reason a lot of people are buying Tesla EVs even though many dont necessarily agree with how the company does things. Perception is EVs = "Tesla" and then "Everyone else" even though there are some nice EVs coming out now.

Perception isnt reality, but its one reason other EVs have had issues moving volume (and lack of desire from their delaerships).

 

[RobStark]

Relative depreciation, many times, has to do more with perception than reality. Hyundai has been making solid cars for quite a long time now, but it doesnt change the fact that, in the US anyway, people associate them with "budget".

The kia stinger was a great package in the sporty sedan category, out "BMW ing" BMW in most of the categories that (supposedly) "drivers" wanted. Kia poached people from BMW to lead the development of that car, and it looked great, and drove great by all accounts. Kia tried to sell it for the same price as BMW 3 series, and buyers simply were not having it.

A LOT of people are going to buy a toyota or honday, "because its a toyota / honda". Its the same reason a lot of people are buying Tesla EVs even though many dont necessarily agree with how the company does things. Perception is EVs = "Tesla" and then "Everyone else" even though there are some nice EVs coming out now.

Perception isnt reality, but its one reason other EVs have had issues moving volume (and lack of desire from their delaerships).

Kia Stinger entered into an atrophying segment.

Kia vs BMW is mainstream vs luxury marque.

Kia vs Tonda is mainstream vs mainstream.

People have been paying upto $15k over MSRP for a Telluride for years now.

Perception is changing for Kia and Hyundai.

Boomer Tonda lovers are aging out of the car market.

 

[alloverx]

A several years old Bolt with a new battery should be a reliable city runabout for many years. Great first car too.
Hard to predict EV prices when there is a "shortage of Lithium" predicted until the 2030s.

Tesla has a great brand and there cars appear to be getting built better all the time (as you would expect with minimal changes)

 

[DougDC]

All about classic supply and demand.

Also as more and more Teslas enter the road and flood the market, those prices too will drop. Unless it has some rare color or trim package.

I work in supply chain and we have had to put millions down just to make sure we get semi conductor inventory. But even then, we're still hurting. There are no signs of supply chain letting up for the forseeable future. Also, with COVID resurging, areas in China, like Shanghai, are shutting down. I have a factory that I am desperately waiting for my parts to be produced, but there is no sign of when they will open up. It's these small issues that compound into the issues we face now.