We used to have that “Peak Insanity” thread for used cars but now it seems that used prices are dropping off steeply, especially for EVs.
There has been grumblings in the various EV threads, even Teslas do not hold the value they used to and new pricing keeps going down with the latest round from Ford on the Mach-E and Lightnings.
Seems like you can pick up 1 and 2 year old used EVs for much less than even new MSRP minus subsidies.
I think someone else said that’s also happening in ICE but I think it’s more apparent with the EVs/PHEVs that had rebate incentives.
I still have yet to see a used Lightning at a big discount but this is making me rethink leasing an EV9 in a year.
Yes… but if new EV9s now are drastically cheaper as a used car in 1 or 2 years, that could work out cheaper.
Seeing Mach-E Premiums for less than $30k when they used to go for $5-10k over MSRP is surprising.
And if most of the depreciation is at the front end, I would worry less about future depreciation. Which is a consideration for getting my kids a used EV in a few years.
But… you never know, which is probably one of the reasons why I lease in the first place.
I wouldn’t bank on EVs not continuing to depreciate rapidly going forward. Especially after 50k miles. Throw away culture has come to the auto world as repairs increase in price.
“Depreciation protection” is one of those inherent benefits of leasing. It might’ve been more of a wash pre-covid, but its a big benefit now with the inflated MSRPs we have.
A few things to consider:
Depending on the model, its going to be off warranty in 2 - 3 years. Reliability definitely isn’t a strong suit of current EVs
If you need to take a loan, there’s a huge difference in the incentivized rates for new EVs vs market rate for used EVs. Mach-E is 0% for 72 months vs like 6%+
That heavy 1-2 year depreciation is likely going to continue for the next few years and that’s not considering an update to the model that obsoletes the current one (ex. Taycan)
[quote=“BigNerd, post:3, topic:531422, full:true”]
Yes… but if new EV9s now are drastically cheaper as a used car in 1 or 2 years, that could work out cheaper./quote]
I see what you are saying. If you could wait two years and buy it, it might end up being slightly cheaper. But in 2 years, there will be better cars, and the EV9 might have new battery technology that you’d wish you had. So it’s a circular argument. If you lease now you can enjoy the utility of the car for 2-3 years, but if wait two years, you might be able to buy the car $10-15K cheaper, but you’ll miss out on the utility/enjoyment of driving the car for two years. To me it’s a wash.
Can I ask what do you drive now? Do you have a monthly payment on your existing car? If you’re paying $500/month and it costs $700/month to upgrade to a EV9, isn’t it worth $7,200 to have a nicer car over the next 3 years? Would you save money on gas too? Maybe it’ll be a wash financially?!
Saw some bolts posted a few days ago. But all this just seams to me a reversion to true market price where these vehicles were ridiculously overpriced and short supply in the past. A welcome sight
Clean carfax Mach E’s are below $25k. I am sure there are quite a few people who got caught holding a bag with their Mach E. If people qualify, there is also the point of sale $4k EV credit. Some might be able to scoop one for near $20k.
Right now there is so much uncertainty in EV market. I’d expect values to continue to go down.
I’m driving an EV now, Ioniq 5… leased it when deals started popping up.
I understand the cycle of leasing. I’ve been living it for years.
But I’ve rarely seen such drops… many of my ICE leases I even had a bit of equity by the end of the 3rd year that I’ve rarely had to pay a disposition fee as I could just trade it in.
So I’m not waiting to get into an EV… I’m prepping now to decide what better EV I should get into.
Time moves fast… and it looks like EVs are depreciating faster… so barring Toyota coming out with a solid state large EV in the next 2 years (sarc), I think the current crowd will be the choices for now.
And again, in a few years could just be getting a local commuter EV for one of the kids. Like @M3WC said, a used Mach-E for $20k might be okay (although the Model 2 might be in the mix by then. ).
I believe there is uncertainty in the EV market. automakers like VW have announced that they will stop producing ICE vehicles by 2026…in the car world that’s basically a year and half away. If that timeline sticks.you may see consumers accepting EVs sooner than later! And that may affect the resale value if market is trending towards electrification.
