I have nearly £100K invested in a car that after 4 years is worth about £55K.
In which case you're doing very well. Most cars would be at or under 50% after only 3 years.
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I have nearly £100K invested in a car that after 4 years is worth about £55K.
Aren't all cars holding their value well at the moment? The 50% deprectiation in 3 years dates back to pre covid times. Used prices are really high, even with ICE at the moment.In which case you're doing very well. Most cars would be at or under 50% after only 3 years.
An M3 is too small for you, so you're gonna get a smaller car. This makes no sense.
Inflation going up, cars are not getting cheaper and petrol is only "cheap" now, it'll likely go above £2/l in the winter.
If you can afford the Y, and want one, why woudlnt you get one? If you are so financially stretched a change in the value of Y will give you sleepless night than you probably shouldn't waste money on one.
We are living in some crazy times at present, if you have good health and family, everything else is a bonuse right now. So enjoy the thought of owning a new Y, rather than stress about something that really isn't worth stressing over.
Agreed, but anything over 50% after 3 years (or 4 in the case of the post I quoted) is still doing well IMHO.Aren't all cars holding their value well at the moment? The 50% deprectiation in 3 years dates back to pre covid times. Used prices are really high, even with ICE at the moment.
The MG is cheaper yes, if you want more money in your bank then do it, percentage wise I’d expect the MG to depreciate more than Tesla due to dealer network pricing. However as they are in different price ranges this means actual figures will vary greatly.It's not about the space, but really the lowered car position, we need to kneel in and crawl out of the M3. Didn't thought it was an issue at first but it's taking its toll now. It's just that the arrival of something like the MG4 made me think more about how an EV is valued and its worth.
Good point... If I didn't now have a M3 already I wouldn't think that much, but since now I can sell it for more than I paid for maybe I should capitalise on it, and knowing the events that has happened and Tesla's margins I just can't help but to wonder. Was just trying to see if anyone is in the same position and thinking of a good strategy, I mean who doesn't want to have a good deal at the end of the day.
There is no normal since we have never before had an outgoing tech vs a new tech in the automotive world in this way. So I think we are looking at a new normal.Agreed, but anything over 50% after 3 years (or 4 in the case of the post I quoted) is still doing well IMHO.
We've had 1.5 extraordinary years of used car pricing, people complaining about a return to normality I find bizarre.
An M3 is too small for you, so you're gonna get a smaller car. This makes no sense.
Inflation going up, cars are not getting cheaper and petrol is only "cheap" now, it'll likely go above £2/l in the winter.
ICE depreciation could go the other way too. There is a big inflection point looming, namely road tax, fuel duty for EVsI read that most car dealers are not concerned and are expecting a *slow* return to more traditional residual values. However they're not the ones paying the depreciation of course unless they're stupid enough to hold stock for much too long.
I expect that on average depreciation will be lower on EVs and Tesla in particular due to much more demand than supply for many years ahead.
Tesla have no reason to cut margins and prices unless they ramp production much more quickly than their stated plans.
The cheaper EV competition from GM Nissan and MG were surprisingly poor in comparison to Tesla in my recent test drives. I expect they'll continue to depreciate faster than Tesla.
The main question mark for me is whether the M3 batteries will outlive the 8 year warranties when most cars would have very little residual value. To early to tell at the moment. And also will the cost of batteries really come down a lot or just moderately. I don't see any big breakthroughs yet, just potentially promising tech looking for investors.
ICE depreciation is likely to be terrible at some point. Be glad you're not exposed to it.
Demand is slowing down in China, and/or supply ramping, whichever it is wait time for a MY is now as little as a week! And Tesla is now offering subsides of around £1k towards insurance for new buyers, which is effectively a price cut. It is my thought that they may be forced to drop their price sooner rather than later, to kick back up demand and fight off competition.I read that most car dealers are not concerned and are expecting a *slow* return to more traditional residual values. However they're not the ones paying the depreciation of course unless they're stupid enough to hold stock for much too long.
I expect that on average depreciation will be lower on EVs and Tesla in particular due to much more demand than supply for many years ahead.
Tesla have no reason to cut margins and prices unless they ramp production much more quickly than their stated plans.
The cheaper EV competition from GM Nissan and MG were surprisingly poor in comparison to Tesla in my recent test drives. I expect they'll continue to depreciate faster than Tesla.
I don't see how you can make assumptions about sales demand in China based on their delivery schedule, there are many factors, the whole I can get the car in a week or they are sold out for months comparison means nothing which people have literally been saying for years and years depending on what narrative they believed.Demand is slowing down in China, and/or supply ramping, whichever it is wait time for a MY is now as little as a week! And Tesla is now offering subsides of around £1k towards insurance for new buyers, which is effectively a price cut. It is my thought that they may be forced to drop their price sooner rather than later, to kick back up demand and fight off competition.
In a recession I would imagine that lower ranged cars will hold their values more as they will be more sought after, and "luxury" cars will drop significantly.
You know you are on the UK forum right?I know there are some analysts saying that Tesla will decline because of the competition but Tesla has three things the other companies don't and the other competitors may not even care: a great charging user experience, and a well placed super charger network. IMHO, the supercharger network is the icing on the cake. When I look at my area, the non-Tesla super chargers are off the highway and broken. All Electrify America had to do was to build super chargers in the next parking lot over from Tesla super chargers. Knowing where and when to stop for the charge is critical and Tesla builds that into the maps. Plus, someone else mentioned this too, EVs are still only 1% of the market. There is a lot of room for growth for everyone.
This is often overlooked.We can only speculate. Tesla have dropped some prices big time, I bought a MS P90D just after Tesla dropped the P100D by 35-40k over night, the used car I bought changed by 20k the week before I bought it, I got lucky.
I sold it though as it approached 4years old because at the time the MCU1 was a real problem with few options, headlights were failing at £1k a time, the heater matrix the same. The MCU now has options but it’s far from unheard of to get a £1k bill.
Teslas depreciation is currently low partly because they keep putting prices up. The cost to change, like for like, isn’t pretty. Even gangzoom quoting 100k cars if he ever gave a balanced view will say his MX has been the most unreliable car he’s ever owned and only cost about £65k to buy. If you could drive away in a new MX today it would be nearly double that price, albeit a car with more range and performance.
Most manufacturers are resource constrained, if those constraints lift we’ve no idea how the market will shake down, add in the closing of the gap between petrol and electricity prices, tax benefits will be looked into I imagine and the financial benefits of running an EV aren’t going to get better, I can only see them being eroded.
We’ve also got the risk that Tesla/Musk will do a Ratner and the sentiment just turns against the brand. Musk keels over with a heart attack might do that without him opening his mouth and saying something stupid.
But I also look at it from the perspective that in the last 18 months I’ve lost nothing on the cars, if anything I’m in profit, and I historically I’d have assumed it would have cost me maybe 8-9k over that time, so if I do get a shock change, I’m unlikely to be worse off than I expected. Of course that doesn’t help new buyers, but I expect things to continue like they are for a while