I was looking at used Evs and I keep seeing 1 or 2 yr old VW id4s with very little miles for like $25-30k. Is there a reason why they lose their value so quickly? I even saw a 2022 Pro S with 2k miles for $28k. Someone basically lost $20k driving it off the lot 😓
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Pre 2020 depreciation was insane and I think we are getting back to that norm now that stimulus money is gone and inventory is back to normal. As a reference point, the last ICE car I bought (right before Covid) was 2.5 years old and less than 30k miles. Sticker was $44k when new and I got it used for $17k flat and they even replaced the tires on it as part of the deal.
In Massachusetts, an ID.4 has $11,000 in tax credits. The vehicle will immediately lose that amount in value, since new cars are available to anyone who wants it.
That means deprecation starts from there, so they didn’t lose $20,000 they lose $9,000 which is a lot less weird
Actually, can’t you get the Massachusetts specific state tax rebate on any electric car, whether it’s new or used?
https://mor-ev.org/eligibility
Yes, but the used program has additional income restrictions that does not apply to the new program.
So your mate buys a car, he gets tax credit.
You buy it from him, you get tax credit.
Your mate buys it back, he gets another tax credit.
Repeat as needed.It seems you’d have to give back your tax credit when selling for that to work.
If you read the fine print you are supposed to keep the car for 36 months. I bought in 2021 and am coming up on 3 years of ownership in March. I have emailed mor-ev multiple times and they have told me different stories when I asked about claiming additional credits before the 36 months pass.
The first time they told me they were understaffed and to just submit another claim for the credit if I bought a new car and to not worry about the 36 month requirement, because no one is checking it.
The second time they told me you are only eligible for the credit every 36 months.
I guess you’d have to roll the dice and see lol
Not everyone qualifies for the $7500, so there are buyers who would buy above that.
Partly why I leased my Model 3 in Feb- it was $45k new and now that is down to $36k, plus the $11k in incentives.
Throw in interest, lost opportunity cost on the down payment, it’ll end up being a wash after 36 months.
For 2023, there is an remodeled version available with a better suspension and more horsepower… Sonthey want to get rid of 1 year old cars at the dealership
Multiple factors all at once
- Supply issues - Two years ago car manufacturers couldn’t get some required components and it took months or years to get a car (I waited 15 months to from order to delivery on my 2022 ID.4, ordered as a 2021 model.) For the most part, these supply chain issues have eased.
- Demand issue - Gas prices went up fast and ended up higher than recent history. Tesla had made EVs a popular choice. Traditional car manufactures entered the market and many people bought EVs to get away from gas. Now that gas prices are much more reasonable, less people feel the need to buy an EV. (Bonus, some people who bought an EV are realizing their lifestyle doesn’t suit an EV so they are going back to an ICE or PHEV)
- Tax rebates - Tax rebates, especially federal, were much easier to get a couple of years ago, so dealers could charge MSRP+ and buyers could still get a reasonable after rebate price. Now, the rebate requirements are harder to meet, so dealers are having to be more aggressive.
EVs aren’t it moment. No one wants them anymore and even less people are willing to buy a used one.
Nonsense
My first EV was new, my second EV will likely be used. It’s great to see the used market come back to life.
The only thing with used EV is MAKE SURE it has low miles. You don’t know how the battery was charged. If it has low enough miles, there shouldn’t be any major degradation.
Scary part is that low miles may not mean anything. Just looking through owner groups and such there’s a not insignificant group that just charges to 100% all the time, and you very well could have a low mileage car that’s just been at 100% all the damn time because it could be.
That is a good point. When I rented an EV when I was in LA last month I charged it to 100% both nights at the hotel. The first day was for a lot of driving around. The second was so I could get to the Rental car with 80%. I wouldn’t have charged like that with my personal car.
More like come down to earth .
things will get interesting once we can have fairly reliable EVs with 250-300mi range for sane prices.
Everyone is waiting for the ‘24s with an updated (read: less buggy) infotainment system.
That will ship and then everyone will be waiting for the '26s with the updated less buggy infotainment system.
Honestly, I don’t think the entertainment system of the 2023 ID.4 is so bad that I’d wait with a purchase because of it. I use Apple CarPlay most of the time anyway, and it is a pretty smooth experience. Unless you are in an area with seriously crappy cell connectivity, but that is not on VW.
The more efficient powertrain of the new models, on the other hand, might be worth it to some people.
I owned the Id4 for a year and I do think it is so bad. It and a few other things with the car have turned me away from VW forever. Most of the features simply didn’t work (scheduled charge, motion activated trunk, approach vehicle key detection unlock, etc)
Hmm, I haven’t tried the scheduled charging, yet, but everything else in your list works pretty well. The motion activated rear gate did at times take a bit of foot wiggling, but it works well enough to be quite useful (Motion activated closing, on the other hand…). Key proximity to unlock works so well that at times I am wondering if I actually locked the car when I left. I have the most current software (3.5?) from this fall. Maybe that fixed some of the problems you experienced?
Supply and demand… non Teslas are not in demand… so, price will plummet. The car is only worth what someone else is willing to pay for it. If nobody wants it then it’s worthless. I own both Tesla and KIA EV6 / Soul EV. I just sold an early model 3 in less than 2 days. Demand for Tesla is definitely higher than any other manufacturer.
r/electric cars is anti Tesla btw. Ignoring the fact that Tesla sells more than all brands combined.
To be fair, Tesla’s lost similar amount of value just based on price reductions on new vehicles. A used Tesla can’t cost more then a new one including federal rebates today since inventory is not in short supply anymore.
Tesla adjusts their MSRP monthly based on market conditions, for other cars you have to shop to learn about manufacturer incentives which can be a pain to deal with.
Where are you at? In upstate NY i actually see used ID4s in low supply and usually still in the 30s which is pretty bad considering in NY you can basically get $8k off a new one with credits
I’m in Fl. I set my search from Miami to Atlanta though out of curiosity and it’s pretty cheap in the entire area.
These first gen EV’s will probably take a hit more then refined products.
It’s most EVs.
EVs are more “technology” than any other car, people aren’t into current gen battery tech, battery degradation is a way bigger deal than ICE engine maintenance/repairs, EVs while a viable option of transportation for a lot of people are still somewhat a novelty in early adopter phases, a very narrow secondary market.
It’s a perfect storm for cliff like depression.
It is not a narrow market. All cars have seen a demand slowdown because the price increases of the last 4 years are not being tolerated and the rebate credits automatically drop the price of used EVs.
“The poll shows 55 percent of adults under 30 say they are at least somewhat likely they will get an electric vehicle next time, as do 49 percent of adults ages 30 to 44, compared with just 31 percent of those 45 and older.”
Your battery degradation comment is ridiculous. There are Teslas on the road with 500k miles and 10-15% degradation. The average user is never going to deal with battery problems.
Isn’t Tesla under scrutiny for their battery health “readings” and then “allegedly artificially” plummeting outside of warranty?
Plus EVs aren’t tenable as an only car solution for like most the geographical US due to climate impact on range, use cases like towing, infrastructure etc. the market for EVs is just a smaller segment. I’m not sure who they’re polling, but I’m pretty sure it’s not people cross shopping and making decisions.
I’m not anti EV, I like cars in general and having a somewhat interest in cars like the Taycan and some Fiskers as questionable as they are. Having said that, die hard EV people seem to live in a bubble. They’re not there yet for a lot of the population, at least in the US where it’s not densely populated and we have lacking infrastructure.
Enjoy being an early adopter, man. Theyre neat. I wouldn’t touch a used market EV outside of warranty, and I’d probably by 10 other cars first for the money. The used market on specialty vehicles is indeed seeing some “deals” again, but they’re retaining value better than EVs still. Check out closed auctions on cars and bids or BaT.
As other people already stated, 1 year old used EVs don’t qualify for the federal tax discount. So if a new 2022 Pro S will cost you around $ 40k, and then you can get the tax rebate, you’ll think pretty hard about getting a used one.
I wonder what the value of older EVs is, now that you can get a tax rebate for EVs three years and older…
Because a lot of happy owners will ditch their cars instantly with delivery of the new generation ID4. They receive Software 4.0 and the more efficient motors meaning a significantly better charging curve and range.
which is why I plan to lease EVs for the time being, it also helps me to get the credit which isn’t available to me normally but there are improvements every ~6 months nearly so I really don’t believe my cars value will be above its residual amount at the end of the lease.
Nissan is leasing Ariya with a 65% residual value for a 3 year lease. There is no way it is going to be valued as such in 3 years.
Used market is back to normal, Tesla was eligible for tax credits when basically no one else was and Tesla also did large price cuts to the point that it just made more sense to go Tesla.
I traded in my EV6 Light back in May of this year right before values took a huge nose dive and the dealership actually lose money on it, they had it for 3 months and ended up lower the price to slightly under what they paid me for it. They may have made money on the financing I guess but usually a used car does not sell at or below what they paid for it.
Some people still owe $50k+ on their EV6 and trade value are at like $30k.
Because it’s an electric vehicle.
ICE used are selling at record highs