Residuals / Depreciation

[Tiger]

It is perhaps true that if you get the latest and greatest in EV:s:

• there is high enough demand that price will be high
• there is high enough demand that they will sell a lot of them
• there is high enough demand (and technology is improving as S curve) that they will make a new even better one just around the corner
• you will lose money if you buy at the "ipo price" and sell soon after

Cars are not investments, but if you think of them as investments, you need to pick really niche ones for which:

• the next version will not be much better
• it's a limited edition now and in the future

Otherwise just be happy for advancing the electrification and for providing the next owner an entry level price into EV:s.

 

[Kenners]

Part of the problem was dealers got killed paying way too much for Tesla’s during and just after Covid, so won’t touch them anymore. They got hit 10k+ per car in many cases.

They hve mot sold that many yet. There are no more Tesla’s hitting the auctions than there used to be BMW 3s etc pre EV, but they held up much better as dealers were happy to pay.

Daily Mail EV stories don’t help either. Runaway effect of that further hurts residuals.

Tbh a SR 3 or Y with 10-20k on the clock at current prices with LFP battery looks a steal if you are going to run it or a few years. Those batteries will last longer than the car.

Price overshoots and everyone leaves!

 

[FastLaneJB]

Part of the problem was dealers got killed paying way too much for Tesla’s during and just after Covid, so won’t touch them anymore. They got hit 10k+ per car in many cases.

They hve mot sold that many yet. There are no more Tesla’s hitting the auctions than there used to be BMW 3s etc pre EV, but they held up much better as dealers were happy to pay.

Daily Mail EV stories don’t help either. Runaway effect of that further hurts residuals.

Tbh a SR 3 or Y with 10-20k on the clock at current prices with LFP battery looks a steal if you are going to run it or a few years. Those batteries will last longer than the car.

Price overshoots and everyone leaves!

One of the issues was in earlier days Tesla's kept a massive amount of their value, it was abnormal compared to most other cars on the market. That's even before Covid and the inflated prices that used cars were carrying.

It's a reset of both Covid pushing them higher no longer being a thing and EV's not being some secret special sauce that gives them higher values than an ICE. Add both of these together and the drop was massive. Maybe a bit lower than it should be it's really just closer to what it probably was always going to be eventually. There's nothing exclusive or special about Tesla's anymore, just a very solid and extremely common car.

Almost always in white