Why the Chevrolet Volt has low resale value

[strochaniak]

Matt just put out a new post on why he thinks the Volt's resale value is so low.

While many people are pointing to the risk about battery life and the cost to replace it, it could just be because the new gen Volts are significantly better than the first gen. This doesn't happen very often with conventional vehicles, and you usually only see marginal upgrades (ie. more airbags, USB ports etc).

An example situation is:

Scenario 1 - Your neighbor just got a job in Japan and posted on facebook their 1 year old TV – great shape, 1080P, the right size for you, gen1 smart-TV integration.

You do some quick browsing and find that the new version of that model is still 1080P, same MSRP, same smart-TV features.

How much are you willing to pay for the used TV, which has basically all the same features as a new one?

Scenario 2 - Same neighbor and used TV, but the new model is 4K, bigger screen for the same MSRP, and gen2 smart-TV integration. Heck it even feeds your cats and tutors your kids.

How much are you willing to pay for the used TV?

This might not be the best news for current Volt owners, but it's very good news for prospective Volt owners.

After a quick search on a used car website, you can find something like this:

Option 1: pay $4k+ more, sit in traffic, have no electric range. Option 2: save $4k+, save time, save on fuel and emissions.

Anyways, here's the full link to the article: http://www.fleetcarma.com/chevrolet-...-resale-value/

What are your thoughts?

 

[MichFin]

All these articles screw up the depreciation because they don't include the $7500 tax credit. So when I bought my car the price was $31,000 for my 2014 Volt. Then I got $7500 tax credit so my real price was $24,500. So that only $6k depreciation in 3 years for the car listed in the picture.

Plus since the 2016 is coming out nobody is buying the 2015's so right now you can probably get a great deal on them. Well under the $31,000 I paid.

 

[gregincal]

All these articles screw up the depreciation because they don't include the $7500 tax credit. So when I bought my car the price was $31,000 for my 2014 Volt. Then I got $7500 tax credit so my real price was $24,500. So that only $6k depreciation in 3 years for the car listed in the picture.

Plus since the 2016 is coming out nobody is buying the 2015's so right now you can probably get a great deal on them. Well under the $31,000 I paid.

I'm not really sure how you can say that the above linked article got in wrong in that way, when the article states "Which means it depreciated at 27% per year, or 24% if I used the after-incentive number (which I contend is the correct way to consider it)." It's just that he didn't pay 31K before incentives, he paid 55K.

 

[MsElectric]

Did you take into account how hideous the new Prius looks? That should cause the older Prius models to hold their value...

I'm amazed someone actually got paid to come up with this hideous mess of a design:

 

[yobigd20]

Did you take into account how hideous the new Prius looks? That should cause the older Prius models to hold their value...

I'm amazed someone actually got paid to come up with this hideous mess of a design:

View attachment 95068

Kinda looks like a spork on the front. You know. The combination of a spoon and a fork that you keep trying to stab food with but never works.

 

[Skotty]

Resale value was not a factor when I bought my 2012 Volt. However, low resale value does extend how long I have to hang onto it before I can buy a Tesla. Luckily, in another year, I will have it fully paid off, at which time I know I will be right side up on the loan.

 

[Saghost]

Matt just put out a new post on why he thinks the Volt's resale value is so low.

While many people are pointing to the risk about battery life and the cost to replace it, it could just be because the new gen Volts are significantly better than the first gen. This doesn't happen very often with conventional vehicles, and you usually only see marginal upgrades (ie. more airbags, USB ports etc).

An example situation is:

Scenario 1 - Your neighbor just got a job in Japan and posted on facebook their 1 year old TV – great shape, 1080P, the right size for you, gen1 smart-TV integration.

You do some quick browsing and find that the new version of that model is still 1080P, same MSRP, same smart-TV features.

How much are you willing to pay for the used TV, which has basically all the same features as a new one?

Scenario 2 - Same neighbor and used TV, but the new model is 4K, bigger screen for the same MSRP, and gen2 smart-TV integration. Heck it even feeds your cats and tutors your kids.

How much are you willing to pay for the used TV?

This might not be the best news for current Volt owners, but it's very good news for prospective Volt owners.

After a quick search on a used car website, you can find something like this:

Option 1: pay $4k+ more, sit in traffic, have no electric range. Option 2: save $4k+, save time, save on fuel and emissions.

Anyways, here's the full link to the article: http://www.fleetcarma.com/chevrolet-...-resale-value/

What are your thoughts?

Well, my first thought is that $55k for a 2012 Volt means either paying well over MSRP for the first cars, or being in Canada, or crazy taxes. After tax and before incentives, with a trivial ~$500 off MSRP, my loaded white Diamond Tricoat was only ~$47k.

So I'm thinking it's not a fair basis for depreciation for the typical Volt - which AFAICT fares better than most cars when measured after the tax credit.

 

[ItsNotAboutTheMoney]

Volt incentives have been high.
There's a tax credit.
New model coming.
4 door small compact.
People haven't driven one.
Other competitors coming.

 

[gene]

For my son, we had been waiting for a Model 3 to replace his Jetta TDI. But now I contemplate what to buy my 20 year old son when his Jetta TDI gets bought back or crushed. Sadly the <100 miles EV range will not work for him. So, I am thinking one fo these used Volts will be what I get him until Model 3 comes. The day Tesla accepts deposits for model three, I'm making my deposit on two of them. Practically everyone I know is also ready to make their deposits.

 

[scottf200]

For my son, we had been waiting for a Model 3 to replace his Jetta TDI. But now I contemplate what to buy my 20 year old son when his Jetta TDI gets bought back or crushed. Sadly the <100 miles EV range will not work for him. So, I am thinking one fo these used Volts will be what I get him until Model 3 comes. The day Tesla accepts deposits for model three, I'm making my deposit on two of them. Practically everyone I know is also ready to make their deposits.

You would not be sorry. My son bought a used 2012 from CarMax. Lot of deals as well since the cars were coming off of lease and the new generation is coming.

 

[EarlyAdopter]

Did you take into account how hideous the new Prius looks? That should cause the older Prius models to hold their value...

I'm amazed someone actually got paid to come up with this hideous mess of a design:

View attachment 95068

Yikes. Looks like Toyota decided to go full Evangelion on that.

 

[EMdoc12]

Yea the low resale is killing me. Bought my '15 volt while planning on waiting for the Model 3 but after driving the Model S for a whole weekend I can't wait. I'm definitely going to be taking a hit offloading mine.

 

[Breezy]

The Volt does have relatively low resale value, although that's highly dependent on lcoation, but a purchase price of $55k isn't representative. That's the cost of being first on the block.

I'm happy though that the Model S now seems to be depreciating at a more typical rate. Maybe next year....

 

[jimtelsa]

Moving on to Tesla

I asked Tesla to value my 2014 fully loaded Volt for trade in

All options

12000. Thats it. They said that because of the recent announcement of a new model the market for used has gone way down.

its lower than you think.

 

[Skotty]

Just did a CarMax appraisal on a 2012 Volt fully loaded (originally listed around $42K or so). They reported it as all good condition, but needs new headlights and they noted a scratch. High miles as I drive a lot, about 71000. Offer of $6500. Just FYI.

 

[Chickenlittle]

Just did a CarMax appraisal on a 2012 Volt fully loaded (originally listed around $42K or so). They reported it as all good condition, but needs new headlights and they noted a scratch. High miles as I drive a lot, about 71000. Offer of $6500. Just FYI.

Thinking of waiting to get a used 2016 volt at end of 2016 . I am sure someone is going to trade in for the ACC option and take a huge hit

 

[jas]

It's off topic but it looks like all electric vehicle depreciate fast. There are some amazing deals on pre-owned Tesla Model S.

 

[Lex]

How much are you willing to pay for the used TV?

The way I see it, plug-in electric cars are not just another consumer item like a TV. They physically move you around just like other vehicles, so there should always be some intrinsic value there, ie. someone who needs just that. And if you buy the right one, it will still be an advanced, revolutionary vehicle to the resale buyer -- even if there are new features, range, etc. ICE cars get better mileage, more features, etc. too, every year.

So if they're really compelling cars, they'll always have resale value, and hopefully comparable or better than other vehicles. And I think that is where the Volt might suffer. In my eyes it's yet another mediocre Chevy product that is great for being a plug-in electric, but little else.

 

[Skotty]

For reference, the approx. trade in value of the car I did the CarMax quote on according to Edmunds and KBB is about $9500 for average condition, but CarMax is only offering $6500. I think this is a case of dealerships not wanting electric cars. What I plan on doing is private party selling the car for roughly the expected trade in value, which puts it at under the rough condition valuation for private party despite being in good shape. Someone should to be willing to buy it for that.

 

[SageBrush]

A new Volt starts at ~ 34k
7.5k is the tax credit
-- So ~ 27k
In two to three years, 50% depreciation
-- So 13k is expected of most cars.

Lower than that would be Volt specific.
I think people often do not realize how discounts/subsidies affect resale values.