Residuals / Depreciation

[Forty_Two]

My M3LR is 2 years old this month with 7k on the clock. It cost me £51k new and the WBAC trade in price today is £20k. My son’s Audi cost him £51k 6 years ago and has 35k on the clock and the WBAC trade in price today is £22k. And add to that the cost of insurance for EV’s.

Someone must have done the maths -, is buying and running an EV costing more than buying and running a petrol car; how much more?

 

[Pink Duck]

WBAC price likely factors in average mileage, weighted heavily by those leasing for business, and in excess of your actual - since you have yet to have your first MOT odometer reading taken. While the Audi will have had several and desired more given the higher percentage of fossil sales at current time.

 

[Mark89052]

You may find if you keep the Tesla for 6 years there won’t be much more depreciation.

A new M3LR is £50k, I would think the equivalent Audi to your sons would cost considerably more now than it did 6 years ago so cost to get into a similar new car will be a lot higher (Just trying to put a positive spin on it)

 

[GeorgeSymonds]

I wouldn’t go off WBAC as there are other factors at work in theee, I find this a more consistent way to see depreciation and it’s still not pretty for my 2022 MY, nearly 30k down in less than 2 years, although it did appreciate from when we bought it initially, let’s say 12k a year.

2022 Model Y Long Range AWD Depreciation in UK

2022 Tesla Model Y Long Range AWD values based on real depreciation curves in UK

tesla-info.com

If Ieased or PCP then I dare say it would be less, but only at the expense of the finance company taking the hit. Insurance is a little higher for the Tesla than our petrol car, people talk about ICE servicing but ours has been averaging £500 every 2 years,£250 a year. Depreciation has been about £24k in 3 years (the BMW was about 55k new, no massively different to our Tesla), so that’s 8k a year. Petrol, I recon it’s costing 25p a mile, diesel would have been cheaper, 12k miles a year, so 3k a year.

Comparing the two, the Tesla has started to cost me more personally, and think if I was buying now I’d only lease, I might have no upside if depreciation is less than expected, something I benefited from before, but a least it’s predictable.

 

[piffmunday]

If it is a company car, it is a no brainer due to the BIK and fuel benefit vs a diesel/petrol.

I have moved from a Ford Ranger which was costing £0.30 a mile for fuel to a Tesla which is costing £0.03 a mile, over the time I anticipate having the car it will save over £16k just in fuel alone.

The personal tax I pay has gone from £1700 a year to £320 a year. This would be a lot more should I say go for a hybrid BMW @ £50k (roughly £3200 a year)

I believe some of the heavy depreciation is due to this benefit, people buying/leasing as a company car and then the getting a new one in 3 years. The demand for new/leased cars is higher than the demand for used cars.

It very difficult to say what mine will be worth in 5 years, I have budgeted around £15k for my calculation. For me, in my situation this was a no brainer.

 

[Adopado]

My M3LR is 2 years old this month with 7k on the clock. It cost me £51k new and the WBAC trade in price today is £20k. My son’s Audi cost him £51k 6 years ago and has 35k on the clock and the WBAC trade in price today is £22k. And add to that the cost of insurance for EV’s.

Someone must have done the maths -, is buying and running an EV costing more than buying and running a petrol car; how much more?

My view is that selling a 2 year old car with 7k on the clock is madness. Don’t sell it and you’ve lost nothing. We are still in the middle of a massive transition and it’s not surprising to me that prices are all over the place. Yes, running an ev is much cheaper unless you do something financially silly! And what about the person that were to buy a 2 year old Tesla at 20000 … bargain!

 

[Unclepaul]

OP purchased his car at the peak of Covid car shortages. Everyone was charging much higher prices then.

Now companies have learned how to make EVs and sell them for less. This is reducing trade in prices.

It is not so much that the car has depreciated, but that the marketplace has changed.

Does not look like OP is actually selling his Tesla, but upset that the value of it has significantly gone down.

His kid purchased his Audi 6 years ago, before the inflationary price increased.

 

[Forty_Two]

I am certainly not going to sell it for £20k, like it or not (and I don't like it) there is nothing I can do but not change my car for the forseeable future.

 

[carnutt]

My M3LR is 2 years old this month with 7k on the clock. It cost me £51k new and the WBAC trade in price today is £20k. My son’s Audi cost him £51k 6 years ago and has 35k on the clock and the WBAC trade in price today is £22k. And add to that the cost of insurance for EV’s.

Someone must have done the maths -, is buying and running an EV costing more than buying and running a petrol car; how much more?

Ive been looking a lot and just bought, 20k is way to low. Id say looking at market if its a 71 with that mileage youre looking at about £26,000 - £27,000.

 

[MD70]

My M3LR is 2 years old this month with 7k on the clock. It cost me £51k new and the WBAC trade in price today is £20k. My son’s Audi cost him £51k 6 years ago and has 35k on the clock and the WBAC trade in price today is £22k. And add to that the cost of insurance for EV’s.

Someone must have done the maths -, is buying and running an EV costing more than buying and running a petrol car; how much more?

By chance I have been looking at autotrader for used M3s and the £20k seems to low. You could probably get £25-30k for it in a private sale.

Even then that is a big hit. Tesla’s pricing strategy hasn’t helped plus I think the used market isn’t as robust compared to ice vehicles for various reasons.

 

[tsh2]

I was looking at Autotrader, since I will need to swap my '19 model 3 for a french registered vehicle in ~1 year, and £20k seemed reasonable for mine with 40k miles now.

 

[Durzel]

I didn't give enough consideration for the whole 0% BIK thing when I bought my M3P outright in 2020. I also thought, silly I know, that the 3/Y wouldn't be an outrageously high volume car. Don't know why I thought that, mainly I think it was because at the time I bought mine.

If I had thought about it properly I would've realised that beginning 3 years after the launch in the UK there would be a constant stream of cars coming to the second hand market, going to auctions, etc. These cars would be sold for whatever trade could get for them, unlike private sales. This means a constant depressive effect on residuals.

0% BIK makes them a complete no-brainer for businesses, therefore it also seems to be a no brainer for a retail customer to go with PCP/leasing as well. The only exception I think to that is if they genuinely think they're going to be buying their "forever car" (for several years at least). Unfortunately there is the issue of the battery warranty only being 8 years, at which point I presume the cars drop off a cliff again depreciation wise, and become deeply concerning to continue to run.

 

[GeorgeSymonds]

I didn't give enough consideration for the whole 0% BIK thing when I bought my M3P outright in 2020. I also thought, silly I know, that the 3/Y wouldn't be an outrageously high volume car. Don't know why I thought that, mainly I think it was because at the time I bought mine.

If I had thought about it properly I would've realised that beginning 3 years after the launch in the UK there would be a constant stream of cars coming to the second hand market, going to auctions, etc. These cars would be sold for whatever trade could get for them, unlike private sales. This means a constant depressive effect on residuals.

0% BIK makes them a complete no-brainer for businesses, therefore it also seems to be a no brainer for a retail customer to go with PCP/leasing as well. The only exception I think to that is if they genuinely think they're going to be buying their "forever car" (for several years at least). Unfortunately there is the issue of the battery warranty only being 8 years, at which point I presume the cars drop off a cliff again depreciation wise, and become deeply concerning to continue to run.

While what you say is absolutely true, its a little worrying for MY owners like me as they've only been out 2 years here and depreciation is already massive before the flood of ex company MY cars hitting the auction houses/road.

 

[debrooker]

19 month M3P bought with tesla loan (26k deposit) £60k new, WBAC 32k - good example of how not to buy a car. That said 8 month old M3LR that formed part of the deposit £0 depreciation. So still right way up at the moment - just. If I was buying an EV now, i'd go for a 12-18 month old Taycan - think our depreciation is bad.... And the shocker is, I have my own Ltd company although I wasn't trading though it at this period and the accountant pulled a big frowny face when I suggested buying through the company.

Its only money......

 

[UrbanSplash]

Regarding Tesla’s, I wouldn’t assume WBAC are the ‘absolute minimum’ offered compared to other methods of selling. My recent experience trying to sell a Y was that WBAC was the same as everywhere. From an owning the car outright perspective, I really struggled to shift the Y.

Part ex- dealers were either insultingly low or outright refused to take the car on.

Motorway bids- never had an issue before, but with the Y, 3 winning bidders actually cancelled and it had to be realised twice.

Autotrader- Be realistic. The asking prices are not what they are selling for. It’s a big leap of faith the sell an expensive, electric car privately to someone that actually has the cash on hand to buy. It’s all finance these days.

Anyway for reference, I sold my Y for £34k. 2 year old LR, white with proper wheels. 24k miles. Tow hitch.

Flip side of course is that buying something else is great. I got an Abarth 500e few month old ex demo, less than £2k miles with £16k off list price. Really enjoy the Mrs etron GT but the nav/software/app is disgraceful.

 

[gangzoom]

I think it all goes to show how unpredictable real life markets are. Our 2017 X is worthless than diesel Q7s of a similar age, and looking how slowly EV sales are progressing, barely more than 2023, I can see the government rolling back on the ICE ban very soon. EVs can easily go the way of diesels interms been 'dumped' as a policy drive for mass transportation.

Lucky we have no intentions of getting any kind of new cars for another 5 years at a minimum. Buying any kind of new car is essentially a waste of money, I've got to a point now where are better things in life to waste money on than cars .

 

[FastLaneJB]

I've got to a point now where are better things in life to waste money on than cars .

Drugs and hookers?

 

[GeorgeSymonds]

Drugs and hookers?

Nah, I’m with George Best, I spent a lot of money on booze, birds and fast cars. The rest I just squandered.

 

[gangzoom]

Drugs and hookers?

We need somestuff to for the builders to fit in here…..

…..and this is the kinda of stuff my wife is ordering…..

 

[Ni Ph]

@Forty_Two I have been looking for M3LR 2022 Ryzen model used (blue/grey) and I was expecting to pay £25k (due to Highland) and can't find any under £28k.

Doesn't look like that deprecation has had an same effect on used retail market