We found a 2023 Hyundai Ioniq 6 SEL sitting on a California car lot for $13,995, which is under a third of the $45,600 MSRP that Hyundai wants for a new one. We Can’t Find a Catch on the Listing So, what’s wrong with it? Honestly, not much. It shows a clean title, and the […]
Brutal depreciation… but also a really great market for used EV buyers.
Seems weird, right? My working theory is that EVs are being overvalued by the manufacturers with inflated MSRPs, and that the used market sort of reveals fair-market value in an unexpected way.
Im not joking. I swear that at one time it was common to hear a car loses a third of its value when you drive it off the lot and was down to half value in 3 years when the warranty tends to run out.
My working theory is that EVs are being overvalued by the manufacturers with inflated MSRPs, and that the used market sort of reveals fair-market value in an unexpected way.
Some of that is true, because the devaluation is based off MSRP, while most EVs get purchased with some incentives.
But the real issue is people are scared to buy an off warranty EV because there still are not a lot of shops to fix them.
Around me, you can buy a lightly used Nissan Leaf for $7K or less. It’s become the new teenager car.
This is why I don’t get the Lemmy hippies whining about the high cost of EVs.
I had thought about the incentive angle. New EV buyers get a doubly hard pitch, because the used stock has the rebate priced in (neither the buyer nor seller views it as a car worth the MSRP, they both deduct the rebate).
I bought a Chevy PHEV with ~150,000 miles to daily drive with, and ya know, when it dies it dies. It was a few grand, it was the cheapest I could get and shockingly decent for the price, so I am that person in the electric beater XD
I thought most cars lost that when you drove them off the lot.
Most EVs, but average is 45-60%. 30% in first year. New cars are for suckers.
Pretty sure you’re joking, but I am who I am, so I got to do the math.
Here, Edmunds has a really crisp infographic. By the Edmunds used car depreciation percentages, this Hyundai should be worth about ~65% of what it originally sold for, but instead it is being sold for half as much: https://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html
Seems weird, right? My working theory is that EVs are being overvalued by the manufacturers with inflated MSRPs, and that the used market sort of reveals fair-market value in an unexpected way.
Im not joking. I swear that at one time it was common to hear a car loses a third of its value when you drive it off the lot and was down to half value in 3 years when the warranty tends to run out.
Some of that is true, because the devaluation is based off MSRP, while most EVs get purchased with some incentives.
But the real issue is people are scared to buy an off warranty EV because there still are not a lot of shops to fix them.
Around me, you can buy a lightly used Nissan Leaf for $7K or less. It’s become the new teenager car.
This is why I don’t get the Lemmy hippies whining about the high cost of EVs.
I had thought about the incentive angle. New EV buyers get a doubly hard pitch, because the used stock has the rebate priced in (neither the buyer nor seller views it as a car worth the MSRP, they both deduct the rebate).
I bought a Chevy PHEV with ~150,000 miles to daily drive with, and ya know, when it dies it dies. It was a few grand, it was the cheapest I could get and shockingly decent for the price, so I am that person in the electric beater XD