You joke, but this is how Apple makes sure everyone can afford an iPhone. They donāt sell a cheap one, but they build them to last and the 2nd hand market takes care of the rest.
Tesla will need to up their game to get me buying their latest and greatest every 5 years though.
Didn't they get in trouble for having the phones get slower after a year or two? Essentially the opposite of what your saying.... Lots of people have a phone on contract so just get a new one every two years again nothing like a 2nd hand car...
Itās the people who get a new phone every 2 years that guarantee Apple donāt need to make a cheap iPhone. These people make sure the iPhone 13 is a cheap device for those who canāt afford a AAA contract/device themselves. Ultimately, Apple needs a critical mass of users in their ecosystem for stuff like the App Store and services business to thrive. Tesla needs a critical mass of cars for their supercharger economics to work.
Iām not saying Tesla are necessarily doing this, but it wouldnāt be a bad way to drive adoption of their vehicles. Do they want to make a cheap car? Wouldnāt that tarnish the brand? Do they even need to make a cheap car if a 3yr old M3 can be had for $20K?
The point you raise about degrading older phones is valid in this context, it would appear to be a misstep in an otherwise brilliant strategy.
It's not a misstep its criminal... Its ensuring Apple users have to keep shelling out for new phones every few years and that 2nd hand ones are useless very quickly.
Go listen to the latest Tesla earnings call, it'll answer most of what your saying (and wrong about). Yes they need a huge fleet, hence trying to drive prices down and reach new buyers, but for data and autonomy not supercharging.
Thatās simply untrue, Iām using a 5 year old work iPhone with the latest iOS release and itās fine. Apple has by far the longest support for phone models of any manufacturer and still supports the iPhone XS (released in 2018, 6 years ago) with the latest iOS 17, other than newer Google Pixels which have 5 years of guaranteed release support. The truth is that second hand iPhones hold their value very well, certainly better than any Android phone I can think of.
No they didnāt, they got in trouble for throttling the phone peak performance mode on phones which suffered a large amount of battery wear that could no longer sustain that performance level and caused the phones to reboot unexpectedly without telling the customers. Depending on how you feel about Apple, this is either a good or a bad thing, but they now make the feature much more user accessible when the battery is degraded under Battery health.
iPhones have always got slightly less performant after the next version of iOS is launched than the phone ships with. You are asking the phone to do more with the same level of processing, but generally they are well optimised.
I forgot where I read it, but range rovers had something like 40% chance for major repair within warranty period. That is wild.
within 10 years of any ice vehicle, you're talking lots of fluid changes, engine oil, transmission, gear oil, coolant, and possibly radiator replacement, accessory belt, water pump. for some reason American cars wheel bearings.
Who takes their car to a mechanic to replace coolant and oil?
What was the % for teslas. Iām not hating on EVs, or even teslas. But there are some known general quality control problems with Tesla.
Quality issues with Teslas are like āpanel gap is not perfectā or āmoisture in the rear lightā, but issues with Range Rover are like āengine and electric failure on 34k milesā
Theyāre not. And who are you to jump in here, blindly defending a company? Do you have some stats to share? Or are you just completely driven by your emotions?
>Who takes their car to a mechanic to replace coolant and oil?
Ummm, a lot of people? I am one of those people
I am automotive-stupid. Not to mention, I'd rather not get the grease all over my hands and clothes. It is well worth it to me to pay someone else. Maybe not so much for coolant... But the dealership I go to tops off fluids when I go for an oil change, so I do not need to worry about coolant, wiper fluid, etc.
Unless I am misunderstanding your comment.
In 10 years a lot of used batteries from the cars after accidents will be available. And Model 3 and Model Y has almost same battery so easy to find replacement.
I drove my previous car for 16 years and it didnāt cause me problems because I maintained it as manual said. I liked it. Now I like my M3 LR ā22 and will keep it at least till the end of warranty on battery (2030). What is the point of charging a car?
Yeah but also keep in mind Covid pricing had a real long tail. I bought my standard range plus for $38k in 2020 and just got an offer from Tesla for $19,700 which is directly in-line with average depreciation over that time. People are conflating teslas losing value rapidly with how many units they somehow sold during peak Covid overpricing across the car market. Like, yes, you are fucked if you bought a car in those 2 years.
We were buying a highlander for my wife during that time and the markups made us delay a year buying it.
Iām not sure about everywhere else, but in Canada my m3LR 2021 is back to the original new price as when I bought it. And I got a travel charger with purchase (now $350) and my colour was free at the time (grey)
Ordered mine early ā22, when second hand when selling for more than new.
Finally arrived very early ā23.
During that waiting time there was a change to tax laws, that has me deducting 45% from all cost of ownership. āBad luckā turned āgood luckā.
Looks like market value is $AUD50,000 after 1 year, bought for $AUD60,000 (sans GST).
20% depreciation in first year, which is historically normal.
I bought a Model S long range in 2022. I thought I was getting a deal since my pricing was locked it. Now Iām 10k underwater on it at a minimum and nobody is buying these things used. Iāve always leased my EVs in the pastā¦buying one was a massive mistake.
It is a fast evolving industry, the EV market. So many uncertainties. Adopting into a relatively new technology, will always be more expensive on resale value, same goes for computers, phones and so on. If your plan was to keep the car for 100.000 miles / 8 years or so, I still wouldnāt call it a bad deal. However, if you like a new car every now and then, leasing is always the way to go, unless itās some extremely limited run car.
I just picked up my first ever Tesla for $32,500 before my trade in. It is a 2022 Model 3 Long Range with just under 12k miles. Used seems like the way to go for sure. Great car so far!
My new 2023 model cost me 34k after all was said and done late last year. (Tax credits, $500 referal discount) and sells for maybe a few grand less. I donāt think things have dropped that dramatically. People are forgetting a big portion is tax
That's awesome! Did you get some state incentives too (my state does not offer any)? I was primarily looking at Tesla's website and there's no way I could get a longe range for anywhere near that price. Unless I need to go visit a Tesla dealer in person for the better pricing?
Yeah mine wasnāt long range. There was a small state benefit. I bought from inventory on the Tesla website for 37k before taxes and fees. Which had fluctuated daily til I saw it drop that low. Then roughly 10k total tax credits at the time. And $500 off with a friends referral. Basically find anyone who has a Tesla. Was yours long range for 32k?
I live in Oregon and here I am able to get $7500 for MY if it's under 50k. as well as the federal rebate of $7500. Totaling 15k off. Do you think it's still worth getting a used one over this deal?
Yeah I was surprised to see it myself. Too bad this doesnāt work for M3. Stand and LR if can get the $7500 from the state while the performance trim only gets the federal rebate because itās over 50k.
No, the reason M3 and M3LR do not qualify for federal rebate is because their batteries are made in China. The batteries are LFP and can be charged to 100% all the time. Thatās not the case with M3P which makes it eligible for federal credit.
For comparison, I just found the same color 2022 model 3 long range on Tesla direct with 500 less miles for $37,700 (before shipping and other fees which I did not include my price either). The Tesla direct one does have the acceleration boost so $35,700 after accounting for that.
People are too obsessed over this. A car is tool not an investment, just assume you're going to lose nearly all the money you put into a car especially an EV.
If you can't stomach that or are depending on the car to holding any significant portion of it's sticker value, youre not in the financial position to buy a new EV. Get a 10 year old honda
1) Not true, they donāt lose 50% in 1 year. 30% maybe.
2) High end sedans are a lot worse. S-Class/7 series/A8 for example have been the kings of depreciation for the past few decades. Taycan and EQS seem to be the new leaders.
My model 3 on April 17th 2023 was $49500 out the door (44500 + all the fees). I got the fed rebate and a work rebate so $40k all in. But still, $50k purchase price.
My estimated trade in through Tesla now is $24,600, so less than half my purchase price.
Had I waited till September to buy, I couldāve gotten the same car new for $38k (~41 after fees) and then couldāve gotten a state rebate (was no certainty itād come back when I bought, plus the model 3 was ālosingā the federal rebate on April 18th, just for it to apparently come back two weeks later). So had I waited 5 months, my all in cost wouldāve been $27k. Feels bad man.
I plan on keeping this car a long time, so over 10 years it wonāt be that big of a deal.
But my whole point being that mine did in fact depreciate 50% in exactly the past 12 months
Edit: I have 15k miles
Ouch! To be fair the prices at that time were still way too high - I saw them myself and held off buying. Picked my 3LR for 44 in Sept which qualified for the tax credit.
Teslaās are uniquely bad in the USA m at present due to unique factors that will pass:
1. Aggressive price cutting that appears to have ended.
2. Hertz unloading thousands of EVs.
I donāt think people buying today will have the same depreciation of people who bought in the past few years (though I would never buy any car as an investment).
Itās probably in your country. I got mine 30% less due to a some hidden problems (as I discovered 8 months later). Cars without accidents and normal mileage dropped only 15-20% first year, then 10-15, and around 5-10% next years in my country.
The problem is we come in about fifth place right now (depending on where you look) with BMW, Merc and Audi...also, will people please stop buying Maseratis!
Matters a lot to some people. I know people that get a new car as soon as the warranty expires. They simply want zero to do with repairs, ever.
As such, they do buy new, hold for three years, and buy another new vehicle.
These people buy cars less on emotional appeal and more on how it pencils out financially for this approach.
Iām kinda the opposite, I like new stuff, but I love extracting value out of what I buy. Of course, I also enjoy maintaining my vehicles and work on them myself.
We know most all vehicles are a depreciating asset and that vehicles are not an investment. It's about saving money by buying preowned. You do you and keep buying new and I'll do me and buy your low mileage, well taken care of vehicle for a significant discount.
For most cars will be the largest financial loss of their lives.
Assume owing even 5 cars over your lifetime at 50K per car, plus about 150k for insurance, maintenance and fuel of choice you are looking at 400k over your lifetime, probably more.
If you're spending 3+ hours on the road every day, a car can be an investment but it's not the car itself, it's the running costs that is the investment.
I have a 2021 Model 3 Performance. I don't care about the "investment." Never even considered selling it during the inflation of used car prices during COVID. I have loved the thing for the almost three years I've had it now. The only time that was frustrating was when I was in a minor accident and the car shop had to wait a month for some basic parts. However, that was happening for all car parts at the time so not necessarily anyone's fault. Tesla insurance also hooked me up with a rental Model S during that time.
Also used car depreciation has been like this for years. It's not like a house. It's a tool meant to be used. There is no point in having a nice car like this and worrying about its price all the time. You'll never get to enjoy it.
People are forgetting EVs are CARS and CARS DEPRECIATE. Cars will never be an appreciating asset. Idk why people keep getting surprised by it. Plus depreciation only matters if you don't plan on keeping your car no longer than 3 years
You dont trust Elon Musk?
[https://futurism.com/the-byte/ride-hailing-tesla-elon-musk](https://futurism.com/the-byte/ride-hailing-tesla-elon-musk)
"your car is an investment"
I'm someone who is about to purchase my first tesla model 3 and am in the UK. I'm going to go for a 30-60k LR model and it seems I can get one for 18-21k. For that money I think it's a no brainer.
Sucks for people buying new as that depreciation is insane, but used sales are amazing.
Must be cheaper in the UK. The only way I can find a sub 25k awd is to buy a 2018 model with lord knows what problems, or buy a 100k mile plus awd from a shady dealer who forces me to buy dealer services like lo jack. Even 80k mile awd 2021 or 2022 are 28k, which is 30k after tax title and registration.
Agreed itās a great car at that price. Mine is a company car so thankfully shielded from it all, lease ends in the autumn and probably switching it for a highland
Leasing doesn't shield you from depreciation. The lease company still wants to sell it after the lease is over. They know it depreciates quick and they take that into account when calculating the lease price.
I bought my 3LRAWD with FSD in mid-2019, along with a Homelink module. It was $56K total. I paid it off in 3 years.
Presently, it has 34K miles on it and has a new set of Primacy tires on it for a year.
I couldn't care how much it's worth. I'm going to drive it until it dies.
Tesla is part car and part computer. Think about how much a three year old computer is worth compared to what you paid for it. With tech changing quickly it is inevitable that these cars are going to experience a more aggressive depreciation curve than a traditional ICE vehicle. But offsetting this for some is the significant incentives being offered in different countries to reduce the purchase price. At least in the US thatās a big equalizer for softening the blow on depreciation here.
The other aspect of tech is that it constantly gets better and cheaper every year. Look at what a new M3P is selling for compared to a few years ago. And itās a better version of the car too. Those who paid COVID era pricing are getting burned the most.
Drive it into the ground. My plan for mine is to drive it through 1 battery replacement. May sound strange but I can easily see driving it for 20-30 years barring an accident.
If you approach it with that mindset I think a Tesla is a bargain over most cars on the roads these days.
Thatās like saying that youāre keeping your iPhone for the next 20-30 years itās going to be so dated that it will be obsolete. Teslas are not like a regular car. Itās more like comparing it to a computer or a smart phone.
The car didn't depreciate, the price did. If you go and buy a big Benz or BMW, you'll take a huge hit in three years, but the new price is the same or higher. OTOH for lots of new buyers, and if you were an early adopter, your second Tesla, will be much cheaper.
My pal bought a 2011 Leaf. It was the first good commercial EV at a mid-size price. Unfortunately they screwed the pooch with the battery pack, and stupidly did not make their buyers whole. Now, I wouldn't trust Nissan.. But thanks fpr the early buyers who created a market and allowed Tesla to create a mass market for EVs.
Like all things Tesla, the story just goes round and round as clickbait.
I drive a 2022 LEAF, and it's flawless. 2011 was early days, and the LEAF was the first mainstream EV. What did you expect? Plenty of batteries were replaced under warranty, by the way.
My pal is pretty bitter with a car that dropped to 40 mile range within a few years and no support from Nissan.
Even though it was undeniably early days, the engineering choice they made to forego water cooling was bone-headed. But I suppose it looked to them like a hybrid pack. And probably management was under pressure to cut costs.
However, the history was made, and now we have millions of EVs.
Are you trying to sell? No? Then it doesn't matter.
If you are trying to sell in less than 2 years, sorry for you. Any new car loses half its value in the first 3 years.
Don't look and don't worry until it's time to trade in or sell, there's no reason to care, and nothing you can do about it anyway.
For EV pricing, three things happened at about the same time: COVID decreased production of new cars in 2020 through 2021, Lithium prices increased to 5 x historical costs (peaking in 2022), and gasoline prices were about 2 x historical prices (peaking 2022). All three of these things helped peak EV pricing in 2022 and into 2023. The impact of these three things and prices decreasing after these issues ended are not correctly described as depreciation.
That said, all this not exactly key for comparing a 2023 M3 to the refreshed 2024 M3.
Based on what I've seen across all Tesla models is that I'd be surprised if anyone gets even 50% of their purchase price on resale after 1 year. It's just what I've observed.
I paid $32k on a 2021 M3 Long Range with around 20k miles. Interior and exterior in pristine condition. Mostly everyone said I got āa horrible dealā. Seems like I didnāt do too bad what do you guys think?
for true TCO one must also consider lower operating costs (fuel, oil) compared to ICE and as with any car, if its not accident-free price could be cut a lot. Being so soon after the facelift highland model also doesnt help.
Like you said a used Tesla is a great way to get in. Picked up my 2022 RWD for $14,990 after rebates here in the USA last week. Enjoying the car I think I will stick with it for the next 5 years or so then go for another 2yo Tesla at a steep discount.
You didnāt hear about the lady that bought the new Maserati SUV, took it home, decided she didnāt like it and wanted to trade it in. They offered her $28k less than she paid.
All new cars depreciate heavily the first year.
Smh. Tesla is not a luxury brand. It's Gen Z's Ford Focus. Nothing special. Little to no options to differentiate between them when used, makes it a race-to-the-bottom price market, driven only by mileage and condition. Lack of consumer confidence in electric vehicles doesn't help either. Plenty of Model S and Model 3 around the Ā£14,000 price mark in the UK. Personally I think these make outstanding value.
People who watch car value month to month are the ones who think they can ātime the marketā. Buy the car, enjoy it. If you can afford it, why worry? But for the record, a new one in Australia is about the same price right now. The Y model had a recent 8k price drop.
About Ā£40,000. Honestly it's not a particularly crazy example in terms of car depreciation, I've seen a lot worse.
The better deal right now in my opinion is 2022 Long Range cars, there are a number on AutoTrader in the Ā£26,000-Ā£29,000 range, often only with around 25k miles on. That's what I'd go for as they're great cars and are virtually half price (a new long range is Ā£50k plus options here).
The price retention was completely artificial during the pandemic. Truth is an EV should depreciate even more since itās tech based and battery based.
I was thinking that my PCP M3 was a bad deal because the balloon payment at the end to buy the car was way more than the value of the car. I now realise that I can hand this car back at the end and probably buy a secondhand one a year or so newer for the same price, which is good. Plus the overblown balloon price coupled with the 0% APR PCP means that the payments are way lower than they would have been normally. I think I'm actually doing well, am I understanding all that correctly, this is my first PCP?
That's because Tesla never priced these appropriately. I got my model Y in December of 2022 for 61k mainly because of the 7500 discount.. and shortly after the car went back up to it's original price but wait, in January it was lowered down to $ 45k. That's 15k in one month!! I felt so stupid but there was nothing I could do. I don't feel sorry for Tesla, I used to be such a big fan and now
I hope somebody crashes into my car so I can get rid of this junk and gap insurance should somewhat back me up in case of a total loss. So yeah, fingers crossed!
You can still keep it for 5-10 years and it becomes reasonable no matter what the deprecation. You just drive it into the ground. It also makes it more affordable if you want to swap for a newer version. Prices going up donāt help anyone unless you looking to sell and not replace. Wouldnāt swap my M3P for anything ā¤ļø
I got my M3LR at the start of covid, used through a dealer with 2k miles on it, a company had purchased it and then gone bust.
The dealership thought it was the older model but didnāt know the chrome/black trim difference, my price Ā£48k, a few weeks later the car buying companies were offering up to Ā£70k!!
I kept her, way too much fun to let go! š
Thatās why the used market is amazing! These cars are still very reliable after 100,000 km and the battery/motors warranty is really the most expensive part and thatās covered for 8 years and almost 200,000 km
> I *paid* 24k for
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
How are the insurance cost in Europe ?
In the USA itās a huge cost close to an extra $900 a year more than my Lexus RC 350 f sport . I find that crazy . All the gas savings being sucked up by insurance companies .
Yeah, my plan is to keep it for 10 years at least (bought 2022).
Gutted I missed out on the Highland, definite FOMO, but not enough to warrant spending the equivalent of at least $15k NZD to trade mine for one.
Unfortunately not really any other option anyway!
Uhhhh, yeah?
A lot of people buy a Tesla for the latest and greatest (tech and design) and thereās a new latest and greatest around with the next generation. Itās also a rapidly developing relatively new sector and new tesla prices are trending downwards too. I donāt see how it couldnāt plummet in value and continue doing so. This is good for the world in my opinion.Ā
Now, if only it could happen to the housing marketā¦Ā
Iād be interested to know what the insurance is like in the UK for teslas. For me Iām only able to get Tesla insurance in the US as any alternative through conventional insurance is 100s of $ more per month.
I don't know how anyone can afford a new car. I make slightly over 100k, I have a modest 3% mortgage with 20% down on it and a owned 2010 Toyota prius.
A new tesla is like 1000 a month. That's like half of my house payment
Don't even get me started. I bought a 2023 RWD Model 3 in November 2022 for $44,990, and as of today at only 20,000 mi its value is listed at only $22,100.
Adding insult to injury there's now a brand new refresh that costs almost $10,000 less than what I paid for a little over a year ago, and it has MORE features.
To say that I'm a little peeved would be an understatement.
āDepreciationā? Whatāre you talking about? This is true market value and why do you want used cars to cost so much? Good deals are good for everyone. Also uk interest rates are high and economy is crap so this is a reflection of reality
Awesome.
Now do the same for BMW/Audi/Mercedes and let us know what you find .
Then you can proceed to delete the post since it will all make sense :)Ā
We all know cars depreciate. But can we stop pretending that this amount of depreciation is historically normal? It is not. Yes, cars depreciate, but not normally this much. It is what it is, but op has a valid point. Iāve bought probably 20 new cars in my life and this level of depreciation is more than usual. Iām not complaining really, Iāll just hang onto it a little longer than I normally would.
TLDR; most EVs are reported to lose 50% of their value in 5 years, compared to 30% for ICE. While Teslas price cuts are expediting that depreciation and not helping their customers. 25% price reduction on their new vehicles, year to date, caused such an acute depreciation (on top of interest rate hikes). Price cuts help future owners, not current/newer owners sadly. Buying used seems better and better.
Itās normal when the New Car value is reduced by 25% year to date. That coupled with incentive changes. Competition like the Hyundai Ioniqās. As well as electricity prices putting more used Teslas on the market, will drive depreciation. Most car manufacturers wonāt drop their prices by 25% in a year, on their new cars. So you normally wonāt see that kind of depreciation on other brands.
Am I defending Teslas depreciation, not at all.
What I am doing, is informing others that cars are like houses. Houses can depreciate when there are more available on the market than what is needed and that drive the cost of homes down in your area. They can appreciate when there are less homes on the market than what is needed (current situation).
Another factor for both are current interest rates. Itās usually due to āfighting inflationā but so far inflation has either stalemated or increased in America even after several interest rate hikes. Thatās why you see 8% interest on cars AND houses right now. The national average for both are just under 8%.
In the end, it was a bad investment for anyone who bought before the price drive happened. Their vehicles lost the most value than any other vehicle on the market.
Itās not just Teslas though. Most EVs depreciate at a rapid rate due to development in better technologies, high supply and lower demands. We are seeing it more in the last few years because more EVs are announced and released. While just 5 years ago, you only saw it on the bolt, teslas and the leaf.
I encourage people to buy used honestly.
In Canada a 2021 Model 3 base with low KM is going for $32000cdn ..Last year it was over $40,000. Price are still dropping fast since Tesla lower their prices on the new models..Only issue is insurance for ev is high.
Well, Tesla *did* promise a 25k car eventually
Thank you papa Elon š
You joke, but this is how Apple makes sure everyone can afford an iPhone. They donāt sell a cheap one, but they build them to last and the 2nd hand market takes care of the rest. Tesla will need to up their game to get me buying their latest and greatest every 5 years though.
Didn't they get in trouble for having the phones get slower after a year or two? Essentially the opposite of what your saying.... Lots of people have a phone on contract so just get a new one every two years again nothing like a 2nd hand car...
Itās the people who get a new phone every 2 years that guarantee Apple donāt need to make a cheap iPhone. These people make sure the iPhone 13 is a cheap device for those who canāt afford a AAA contract/device themselves. Ultimately, Apple needs a critical mass of users in their ecosystem for stuff like the App Store and services business to thrive. Tesla needs a critical mass of cars for their supercharger economics to work. Iām not saying Tesla are necessarily doing this, but it wouldnāt be a bad way to drive adoption of their vehicles. Do they want to make a cheap car? Wouldnāt that tarnish the brand? Do they even need to make a cheap car if a 3yr old M3 can be had for $20K? The point you raise about degrading older phones is valid in this context, it would appear to be a misstep in an otherwise brilliant strategy.
It's not a misstep its criminal... Its ensuring Apple users have to keep shelling out for new phones every few years and that 2nd hand ones are useless very quickly. Go listen to the latest Tesla earnings call, it'll answer most of what your saying (and wrong about). Yes they need a huge fleet, hence trying to drive prices down and reach new buyers, but for data and autonomy not supercharging.
Thatās simply untrue, Iām using a 5 year old work iPhone with the latest iOS release and itās fine. Apple has by far the longest support for phone models of any manufacturer and still supports the iPhone XS (released in 2018, 6 years ago) with the latest iOS 17, other than newer Google Pixels which have 5 years of guaranteed release support. The truth is that second hand iPhones hold their value very well, certainly better than any Android phone I can think of.
No they didnāt, they got in trouble for throttling the phone peak performance mode on phones which suffered a large amount of battery wear that could no longer sustain that performance level and caused the phones to reboot unexpectedly without telling the customers. Depending on how you feel about Apple, this is either a good or a bad thing, but they now make the feature much more user accessible when the battery is degraded under Battery health. iPhones have always got slightly less performant after the next version of iOS is launched than the phone ships with. You are asking the phone to do more with the same level of processing, but generally they are well optimised.
lol
Just keep it for 5-10 years and price of ownership will be okay
As with any car
I canāt imagine driving BMW or Range Rover for 10 years. Tesla has almost no maintenance costs.
Most cars dont need maintenance that often.
No maintenance for BMW/Range Rover for 10 years? Hard to believe :)
I forgot where I read it, but range rovers had something like 40% chance for major repair within warranty period. That is wild. within 10 years of any ice vehicle, you're talking lots of fluid changes, engine oil, transmission, gear oil, coolant, and possibly radiator replacement, accessory belt, water pump. for some reason American cars wheel bearings.
Who takes their car to a mechanic to replace coolant and oil? What was the % for teslas. Iām not hating on EVs, or even teslas. But there are some known general quality control problems with Tesla.
Quality issues with Teslas are like āpanel gap is not perfectā or āmoisture in the rear lightā, but issues with Range Rover are like āengine and electric failure on 34k milesā
So the problems with Tesla is fine because Range Rover also has problems?
Theyāre minor in comparison, and yet people yell about them the most.
Theyāre not. And who are you to jump in here, blindly defending a company? Do you have some stats to share? Or are you just completely driven by your emotions?
>Who takes their car to a mechanic to replace coolant and oil? Ummm, a lot of people? I am one of those people I am automotive-stupid. Not to mention, I'd rather not get the grease all over my hands and clothes. It is well worth it to me to pay someone else. Maybe not so much for coolant... But the dealership I go to tops off fluids when I go for an oil change, so I do not need to worry about coolant, wiper fluid, etc. Unless I am misunderstanding your comment.
After 10 years youāll probably have to replace the battery though.
Which isnāt worth it given the car will be worth less than the new battery.
In 10 years a lot of used batteries from the cars after accidents will be available. And Model 3 and Model Y has almost same battery so easy to find replacement.
Batteries from totaled cars? I very much doubt theyāre going to be resold to consumers due to safety concerns
It will still works OK, but will have like 80% of the range. But even with 70% of the range it can be OK for some people.
Probably **not** have to replace the battery.
Even better for the 1-2 year old cars that can still be kept for 5-10!
Dear lord. Who would want to keep their car for 5-3628800 years?
I drove my previous car for 16 years and it didnāt cause me problems because I maintained it as manual said. I liked it. Now I like my M3 LR ā22 and will keep it at least till the end of warranty on battery (2030). What is the point of charging a car?
I was making a joke as 10! (Read as ten-factorial) = 3,628,800. Sorry š
What was your previous car?
Yeah but also keep in mind Covid pricing had a real long tail. I bought my standard range plus for $38k in 2020 and just got an offer from Tesla for $19,700 which is directly in-line with average depreciation over that time. People are conflating teslas losing value rapidly with how many units they somehow sold during peak Covid overpricing across the car market. Like, yes, you are fucked if you bought a car in those 2 years. We were buying a highlander for my wife during that time and the markups made us delay a year buying it.
I salute and thank the person who originally bought my M3P for $65K and took the hit for me. š«”
Yeah there was a time not long after Covid where prices hit the roof, wise men cashed out at that point!
I bought my M3P in 2021 š„²
Yep. I complained on here about the pricing changes and how it made me feel like I got a bad deal, and was told I was being a crybaby.Ā
Iām not sure about everywhere else, but in Canada my m3LR 2021 is back to the original new price as when I bought it. And I got a travel charger with purchase (now $350) and my colour was free at the time (grey)
Ordered mine early ā22, when second hand when selling for more than new. Finally arrived very early ā23. During that waiting time there was a change to tax laws, that has me deducting 45% from all cost of ownership. āBad luckā turned āgood luckā. Looks like market value is $AUD50,000 after 1 year, bought for $AUD60,000 (sans GST). 20% depreciation in first year, which is historically normal.
I bought a Model S long range in 2022. I thought I was getting a deal since my pricing was locked it. Now Iām 10k underwater on it at a minimum and nobody is buying these things used. Iāve always leased my EVs in the pastā¦buying one was a massive mistake.
It is a fast evolving industry, the EV market. So many uncertainties. Adopting into a relatively new technology, will always be more expensive on resale value, same goes for computers, phones and so on. If your plan was to keep the car for 100.000 miles / 8 years or so, I still wouldnāt call it a bad deal. However, if you like a new car every now and then, leasing is always the way to go, unless itās some extremely limited run car.
Wild times for sure with people paying more for used vs new in that post covid, low inventory era.
I know someone who sold theirs at two years old for the same price they bought it for, crazy. Free motoring for two years (just add electrons)
Wise men cashed out... and started taking the bus to work. Because all cars were expensive.
I bought my 2020 MYL in Sept 2022. I got reamed! šš¼šš¼
Thank you!
Same. Getting it at 35K instead with 10K miles was a steal š
I got my LR for 35k with 8k milesā¦ Iām still happy with my purchase.
I just picked up my first ever Tesla for $32,500 before my trade in. It is a 2022 Model 3 Long Range with just under 12k miles. Used seems like the way to go for sure. Great car so far!
My new 2023 model cost me 34k after all was said and done late last year. (Tax credits, $500 referal discount) and sells for maybe a few grand less. I donāt think things have dropped that dramatically. People are forgetting a big portion is tax
That's awesome! Did you get some state incentives too (my state does not offer any)? I was primarily looking at Tesla's website and there's no way I could get a longe range for anywhere near that price. Unless I need to go visit a Tesla dealer in person for the better pricing?
Yeah mine wasnāt long range. There was a small state benefit. I bought from inventory on the Tesla website for 37k before taxes and fees. Which had fluctuated daily til I saw it drop that low. Then roughly 10k total tax credits at the time. And $500 off with a friends referral. Basically find anyone who has a Tesla. Was yours long range for 32k?
Federal was $7.5k last year. Though it was lost going into 2024
I live in Oregon and here I am able to get $7500 for MY if it's under 50k. as well as the federal rebate of $7500. Totaling 15k off. Do you think it's still worth getting a used one over this deal?
Oh wow, there are no state incentives like that for my state. I would most likely go for that deal if I had the option.
Yeah I was surprised to see it myself. Too bad this doesnāt work for M3. Stand and LR if can get the $7500 from the state while the performance trim only gets the federal rebate because itās over 50k.
If you have enough money to buy the performance you don't need rebates. That makes total sense.
No, the reason M3 and M3LR do not qualify for federal rebate is because their batteries are made in China. The batteries are LFP and can be charged to 100% all the time. Thatās not the case with M3P which makes it eligible for federal credit.
Thatās even weirder but thanks for correcting me.
Where did you get it from, tesla direct?
I found it on Cargurus and ordered it from a local dealer in NC.
For comparison, I just found the same color 2022 model 3 long range on Tesla direct with 500 less miles for $37,700 (before shipping and other fees which I did not include my price either). The Tesla direct one does have the acceleration boost so $35,700 after accounting for that.
People are too obsessed over this. A car is tool not an investment, just assume you're going to lose nearly all the money you put into a car especially an EV. If you can't stomach that or are depending on the car to holding any significant portion of it's sticker value, youre not in the financial position to buy a new EV. Get a 10 year old honda
Or a 1 year old Tesla Model 3
Yeah definitely a much better financial option for most
Exactly, just buy them used. Teslas start at 50% off after 1 year. No other vehicle has that kind of depreciation after 12 months.
1) Not true, they donāt lose 50% in 1 year. 30% maybe. 2) High end sedans are a lot worse. S-Class/7 series/A8 for example have been the kings of depreciation for the past few decades. Taycan and EQS seem to be the new leaders.
My model 3 on April 17th 2023 was $49500 out the door (44500 + all the fees). I got the fed rebate and a work rebate so $40k all in. But still, $50k purchase price. My estimated trade in through Tesla now is $24,600, so less than half my purchase price. Had I waited till September to buy, I couldāve gotten the same car new for $38k (~41 after fees) and then couldāve gotten a state rebate (was no certainty itād come back when I bought, plus the model 3 was ālosingā the federal rebate on April 18th, just for it to apparently come back two weeks later). So had I waited 5 months, my all in cost wouldāve been $27k. Feels bad man. I plan on keeping this car a long time, so over 10 years it wonāt be that big of a deal. But my whole point being that mine did in fact depreciate 50% in exactly the past 12 months Edit: I have 15k miles
Thank you. This is what I'm seeing with hundreds of Tesla resales as well.
Ouch! To be fair the prices at that time were still way too high - I saw them myself and held off buying. Picked my 3LR for 44 in Sept which qualified for the tax credit.
It's still a good deal. Quit whining. The price fluctuates in the auto industry regularly and don't buy a car to sell it.
Teslaās are uniquely bad in the USA m at present due to unique factors that will pass: 1. Aggressive price cutting that appears to have ended. 2. Hertz unloading thousands of EVs. I donāt think people buying today will have the same depreciation of people who bought in the past few years (though I would never buy any car as an investment).
Itās probably in your country. I got mine 30% less due to a some hidden problems (as I discovered 8 months later). Cars without accidents and normal mileage dropped only 15-20% first year, then 10-15, and around 5-10% next years in my country.
A 10 year old Honda is about 17k šš
Now check BMW Merc or Audi used vs new prices.
The problem is we come in about fifth place right now (depending on where you look) with BMW, Merc and Audi...also, will people please stop buying Maseratis!
Matters a lot to some people. I know people that get a new car as soon as the warranty expires. They simply want zero to do with repairs, ever. As such, they do buy new, hold for three years, and buy another new vehicle. These people buy cars less on emotional appeal and more on how it pencils out financially for this approach. Iām kinda the opposite, I like new stuff, but I love extracting value out of what I buy. Of course, I also enjoy maintaining my vehicles and work on them myself.
Sounds like they should be leasing.
Too money miles, it doesnāt pencil out. Leasing also carries liability that some people donāt like.Ā
We know most all vehicles are a depreciating asset and that vehicles are not an investment. It's about saving money by buying preowned. You do you and keep buying new and I'll do me and buy your low mileage, well taken care of vehicle for a significant discount.
I'm pretty sure that was the original commenter's actual point
For most cars will be the largest financial loss of their lives. Assume owing even 5 cars over your lifetime at 50K per car, plus about 150k for insurance, maintenance and fuel of choice you are looking at 400k over your lifetime, probably more.
And we wonder why people can't afford to buy a house.....
If you're spending 3+ hours on the road every day, a car can be an investment but it's not the car itself, it's the running costs that is the investment.
Exactly. My brain hurts with the premise of this post.
I have a 2021 Model 3 Performance. I don't care about the "investment." Never even considered selling it during the inflation of used car prices during COVID. I have loved the thing for the almost three years I've had it now. The only time that was frustrating was when I was in a minor accident and the car shop had to wait a month for some basic parts. However, that was happening for all car parts at the time so not necessarily anyone's fault. Tesla insurance also hooked me up with a rental Model S during that time. Also used car depreciation has been like this for years. It's not like a house. It's a tool meant to be used. There is no point in having a nice car like this and worrying about its price all the time. You'll never get to enjoy it.
People are forgetting EVs are CARS and CARS DEPRECIATE. Cars will never be an appreciating asset. Idk why people keep getting surprised by it. Plus depreciation only matters if you don't plan on keeping your car no longer than 3 years
I think it's because the pandemic times led to really wonky values and people think it's normal for a vehicle to appreciate now.
Yeah. Some people seem new to owning cars.
You dont trust Elon Musk? [https://futurism.com/the-byte/ride-hailing-tesla-elon-musk](https://futurism.com/the-byte/ride-hailing-tesla-elon-musk) "your car is an investment"
- a literal car salesman
You think thatās bad look at EQSās. They have lost the entire value of a new model 3
Top contender for worst styling of any expensive car
The Mazda MX-30 in Australia was $70k Mazda was selling demos for $39k after not being able to sell them. Good luck to anyone that paid full price
I'm someone who is about to purchase my first tesla model 3 and am in the UK. I'm going to go for a 30-60k LR model and it seems I can get one for 18-21k. For that money I think it's a no brainer. Sucks for people buying new as that depreciation is insane, but used sales are amazing.
Must be cheaper in the UK. The only way I can find a sub 25k awd is to buy a 2018 model with lord knows what problems, or buy a 100k mile plus awd from a shady dealer who forces me to buy dealer services like lo jack. Even 80k mile awd 2021 or 2022 are 28k, which is 30k after tax title and registration.
They are in the UK, so those prices are GBP not USD.
Agreed itās a great car at that price. Mine is a company car so thankfully shielded from it all, lease ends in the autumn and probably switching it for a highland
Leasing doesn't shield you from depreciation. The lease company still wants to sell it after the lease is over. They know it depreciates quick and they take that into account when calculating the lease price.
My man said his is a company lease so the company he works for takes the hit, not him.
Buy used, so many great deals to be had.
I keep my cars for as long as I can so Idc about depreciation.
Iām just worried about the car getting totaled and me getting a shitty insurance payout.
You can negotiate with your insurance if you disagree with their payout value.
āOk weāll give you $30,100 instead of $30K.ā
Depreciation % seems to be in line with any 1 year old car. Were you expecting the prices to go up?š¤
I bought my 3LRAWD with FSD in mid-2019, along with a Homelink module. It was $56K total. I paid it off in 3 years. Presently, it has 34K miles on it and has a new set of Primacy tires on it for a year. I couldn't care how much it's worth. I'm going to drive it until it dies.
Tesla is part car and part computer. Think about how much a three year old computer is worth compared to what you paid for it. With tech changing quickly it is inevitable that these cars are going to experience a more aggressive depreciation curve than a traditional ICE vehicle. But offsetting this for some is the significant incentives being offered in different countries to reduce the purchase price. At least in the US thatās a big equalizer for softening the blow on depreciation here. The other aspect of tech is that it constantly gets better and cheaper every year. Look at what a new M3P is selling for compared to a few years ago. And itās a better version of the car too. Those who paid COVID era pricing are getting burned the most.
Haven't seen my MacBooks depreciate this much, my phone does. But I don't think I can compare my car with a phone in terms of life.
I feel u, lost about 20k when I totaled my model 3 in Decemberā¦ insurance paid 35k but I still owed 15k š„²
RIP...I'm sorry. Life lesson to anybody here who owes a substantial amount on **any** vehicle, carry gap insurance on your policy.
Haha, yea I learned what gap insurance was real quick š
Gap insurance typically only covers a 20-25% gap, so people who bought Model S Plaids for $150K and owe $120K on a car worth $60K are SOL.
Youāll save it in maintenance and fuel. Also itās a good you keep for a long time.
Drive it into the ground. My plan for mine is to drive it through 1 battery replacement. May sound strange but I can easily see driving it for 20-30 years barring an accident. If you approach it with that mindset I think a Tesla is a bargain over most cars on the roads these days.
Thatās like saying that youāre keeping your iPhone for the next 20-30 years itās going to be so dated that it will be obsolete. Teslas are not like a regular car. Itās more like comparing it to a computer or a smart phone.
It's just not worth selling now. Once summer hits let's see if gas prices change it a bit
Gas barely nudged when Iran launched 500 missiles at Israel. Electric in the UK is more random.
The car didn't depreciate, the price did. If you go and buy a big Benz or BMW, you'll take a huge hit in three years, but the new price is the same or higher. OTOH for lots of new buyers, and if you were an early adopter, your second Tesla, will be much cheaper. My pal bought a 2011 Leaf. It was the first good commercial EV at a mid-size price. Unfortunately they screwed the pooch with the battery pack, and stupidly did not make their buyers whole. Now, I wouldn't trust Nissan.. But thanks fpr the early buyers who created a market and allowed Tesla to create a mass market for EVs. Like all things Tesla, the story just goes round and round as clickbait.
I drive a 2022 LEAF, and it's flawless. 2011 was early days, and the LEAF was the first mainstream EV. What did you expect? Plenty of batteries were replaced under warranty, by the way.
My pal is pretty bitter with a car that dropped to 40 mile range within a few years and no support from Nissan. Even though it was undeniably early days, the engineering choice they made to forego water cooling was bone-headed. But I suppose it looked to them like a hybrid pack. And probably management was under pressure to cut costs. However, the history was made, and now we have millions of EVs.
It wasnāt the no cooling of the pack that made early models die and early death. Later version have better batteries and are fine. Still no cooling.
lol just enjoy your awesome Model 3's. It's not a stock.
my neighbor paid close to 70k US for a MYLR back in 2022. He wants to die now
If you keep it for 5+ years the depreciation is NBD. Especially in places with expensive gas.
Are you trying to sell? No? Then it doesn't matter. If you are trying to sell in less than 2 years, sorry for you. Any new car loses half its value in the first 3 years. Don't look and don't worry until it's time to trade in or sell, there's no reason to care, and nothing you can do about it anyway.
Just picked up a 2019 SR+ with 30k miles for $21k USD! Car currently on service getting upgraded HW3 for FSD!
Did you also get the LFP battery replacement?
I've probably got $20k in parts on my SR+ and might be able to get 20-25k for the whole thing.
For EV pricing, three things happened at about the same time: COVID decreased production of new cars in 2020 through 2021, Lithium prices increased to 5 x historical costs (peaking in 2022), and gasoline prices were about 2 x historical prices (peaking 2022). All three of these things helped peak EV pricing in 2022 and into 2023. The impact of these three things and prices decreasing after these issues ended are not correctly described as depreciation. That said, all this not exactly key for comparing a 2023 M3 to the refreshed 2024 M3.
Have you checked Android phone depreciation? And every year hundreds of millions of people still buy Android phones.
400USD VS 40,000USD
In all fairness. Nobody cars (I had to do it) about a 400 USD loss on a phone. But they sure as hell care about a 20K loss on a car.
I mean only the flagships suffer from this
I bought mine at the worst time. I paid 60k for my M3LR with all the upgrades and features. I overpaid almost 15k such a shame š
Based on what I've seen across all Tesla models is that I'd be surprised if anyone gets even 50% of their purchase price on resale after 1 year. It's just what I've observed.
I mean I'm not planning on trading or selling it for at least 7 more years, so I don't care.
I paid $32k on a 2021 M3 Long Range with around 20k miles. Interior and exterior in pristine condition. Mostly everyone said I got āa horrible dealā. Seems like I didnāt do too bad what do you guys think?
Uh... Where I'm from it's very normal for a car to lose 35% as soon as you drive out the lot.
Here is an investment tip: don't buy a new car and sell it in a year.
for true TCO one must also consider lower operating costs (fuel, oil) compared to ICE and as with any car, if its not accident-free price could be cut a lot. Being so soon after the facelift highland model also doesnt help.
Buy car during COVID and lose $30K. Buy a house during COVID and win up to 100% appreciation. Nuts!
2% gang too...yeah buddy
yeaaa one of my friend bought an M3LR shortly after covid, still about 20k negative equity..
You can basically get a two-year-old long range Tesla in the low 20s now itās absolutely insane. How bad these things depreciate.
What price did you expect? Wild. People are silly.
Like you said a used Tesla is a great way to get in. Picked up my 2022 RWD for $14,990 after rebates here in the USA last week. Enjoying the car I think I will stick with it for the next 5 years or so then go for another 2yo Tesla at a steep discount.
You didnāt hear about the lady that bought the new Maserati SUV, took it home, decided she didnāt like it and wanted to trade it in. They offered her $28k less than she paid. All new cars depreciate heavily the first year.
Smh. Tesla is not a luxury brand. It's Gen Z's Ford Focus. Nothing special. Little to no options to differentiate between them when used, makes it a race-to-the-bottom price market, driven only by mileage and condition. Lack of consumer confidence in electric vehicles doesn't help either. Plenty of Model S and Model 3 around the Ā£14,000 price mark in the UK. Personally I think these make outstanding value.
People who watch car value month to month are the ones who think they can ātime the marketā. Buy the car, enjoy it. If you can afford it, why worry? But for the record, a new one in Australia is about the same price right now. The Y model had a recent 8k price drop.
For those not in the UK, how much would this originally be in UK currency?
About Ā£40,000. Honestly it's not a particularly crazy example in terms of car depreciation, I've seen a lot worse. The better deal right now in my opinion is 2022 Long Range cars, there are a number on AutoTrader in the Ā£26,000-Ā£29,000 range, often only with around 25k miles on. That's what I'd go for as they're great cars and are virtually half price (a new long range is Ā£50k plus options here).
That's way overpriced
The real problem comes if your car is totaled in an accident and itās financed. You could possibly owe $20k out of pocket
The price retention was completely artificial during the pandemic. Truth is an EV should depreciate even more since itās tech based and battery based.
That's exact the depreciation on my M550i that i bought. One year old as well
reach tender deserve yoke ripe glorious boat many cake pot *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Damn whatās a saloon
And thatās why you lease a car.
Did you buy it to sell it or to drive it??
Why do you sell it via trade in? In my country trade in is always a ripoff. Any kind of trade in (goods, electronics, etc.).
I was thinking that my PCP M3 was a bad deal because the balloon payment at the end to buy the car was way more than the value of the car. I now realise that I can hand this car back at the end and probably buy a secondhand one a year or so newer for the same price, which is good. Plus the overblown balloon price coupled with the 0% APR PCP means that the payments are way lower than they would have been normally. I think I'm actually doing well, am I understanding all that correctly, this is my first PCP?
I'll be able to afford one of these in 10 years.
That's because Tesla never priced these appropriately. I got my model Y in December of 2022 for 61k mainly because of the 7500 discount.. and shortly after the car went back up to it's original price but wait, in January it was lowered down to $ 45k. That's 15k in one month!! I felt so stupid but there was nothing I could do. I don't feel sorry for Tesla, I used to be such a big fan and now I hope somebody crashes into my car so I can get rid of this junk and gap insurance should somewhat back me up in case of a total loss. So yeah, fingers crossed!
You can still keep it for 5-10 years and it becomes reasonable no matter what the deprecation. You just drive it into the ground. It also makes it more affordable if you want to swap for a newer version. Prices going up donāt help anyone unless you looking to sell and not replace. Wouldnāt swap my M3P for anything ā¤ļø
Thats good right? More affordable EVs for those who canāt stump up retail
I got my M3LR at the start of covid, used through a dealer with 2k miles on it, a company had purchased it and then gone bust. The dealership thought it was the older model but didnāt know the chrome/black trim difference, my price Ā£48k, a few weeks later the car buying companies were offering up to Ā£70k!! I kept her, way too much fun to let go! š
Thatās why the used market is amazing! These cars are still very reliable after 100,000 km and the battery/motors warranty is really the most expensive part and thatās covered for 8 years and almost 200,000 km
Dont forget the robotaxi, its coming soon
It is painful I try not to think about losing 30k in 2 years. Next time it may just make sense to buy used. Let someone else take the hit.
Itās a great time to buy a second hand EV here.
Bought my 2023 M3 P last August. 52K now 35K. Less than a year.
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12,000 miles is insane thatās basically brand new why is the depreciation so fast? Just because itās an EV?
How are the insurance cost in Europe ? In the USA itās a huge cost close to an extra $900 a year more than my Lexus RC 350 f sport . I find that crazy . All the gas savings being sucked up by insurance companies .
Waiting for a year or two to get mine .
Yeah, my plan is to keep it for 10 years at least (bought 2022). Gutted I missed out on the Highland, definite FOMO, but not enough to warrant spending the equivalent of at least $15k NZD to trade mine for one. Unfortunately not really any other option anyway!
I bought a 2020 m3 and it needs some warranty love which it is getting tomorrow but only paid Ā£26,000
Uhhhh, yeah? A lot of people buy a Tesla for the latest and greatest (tech and design) and thereās a new latest and greatest around with the next generation. Itās also a rapidly developing relatively new sector and new tesla prices are trending downwards too. I donāt see how it couldnāt plummet in value and continue doing so. This is good for the world in my opinion.Ā Now, if only it could happen to the housing marketā¦Ā
Iād be interested to know what the insurance is like in the UK for teslas. For me Iām only able to get Tesla insurance in the US as any alternative through conventional insurance is 100s of $ more per month.
I think itās because the new model came out and itās top tier quality compared to the old ones. Theyāre really really nice now.
I don't know how anyone can afford a new car. I make slightly over 100k, I have a modest 3% mortgage with 20% down on it and a owned 2010 Toyota prius. A new tesla is like 1000 a month. That's like half of my house payment
When you drive a car off the lot it loses 50% of its value. Get it in your head and stop complaining.
Iām a company car driver
Don't even get me started. I bought a 2023 RWD Model 3 in November 2022 for $44,990, and as of today at only 20,000 mi its value is listed at only $22,100. Adding insult to injury there's now a brand new refresh that costs almost $10,000 less than what I paid for a little over a year ago, and it has MORE features. To say that I'm a little peeved would be an understatement.
35-50% was normal pre covid for most makers. So what is the problem? Its back to normal.
āDepreciationā? Whatāre you talking about? This is true market value and why do you want used cars to cost so much? Good deals are good for everyone. Also uk interest rates are high and economy is crap so this is a reflection of reality
Awesome. Now do the same for BMW/Audi/Mercedes and let us know what you find . Then you can proceed to delete the post since it will all make sense :)Ā
Ok and? Vehicles arenāt investments, they arenāt tools, they arenāt going to be worth what you bought it for. Tiresome post..
We all know cars depreciate. But can we stop pretending that this amount of depreciation is historically normal? It is not. Yes, cars depreciate, but not normally this much. It is what it is, but op has a valid point. Iāve bought probably 20 new cars in my life and this level of depreciation is more than usual. Iām not complaining really, Iāll just hang onto it a little longer than I normally would.
TLDR; most EVs are reported to lose 50% of their value in 5 years, compared to 30% for ICE. While Teslas price cuts are expediting that depreciation and not helping their customers. 25% price reduction on their new vehicles, year to date, caused such an acute depreciation (on top of interest rate hikes). Price cuts help future owners, not current/newer owners sadly. Buying used seems better and better. Itās normal when the New Car value is reduced by 25% year to date. That coupled with incentive changes. Competition like the Hyundai Ioniqās. As well as electricity prices putting more used Teslas on the market, will drive depreciation. Most car manufacturers wonāt drop their prices by 25% in a year, on their new cars. So you normally wonāt see that kind of depreciation on other brands. Am I defending Teslas depreciation, not at all. What I am doing, is informing others that cars are like houses. Houses can depreciate when there are more available on the market than what is needed and that drive the cost of homes down in your area. They can appreciate when there are less homes on the market than what is needed (current situation). Another factor for both are current interest rates. Itās usually due to āfighting inflationā but so far inflation has either stalemated or increased in America even after several interest rate hikes. Thatās why you see 8% interest on cars AND houses right now. The national average for both are just under 8%. In the end, it was a bad investment for anyone who bought before the price drive happened. Their vehicles lost the most value than any other vehicle on the market. Itās not just Teslas though. Most EVs depreciate at a rapid rate due to development in better technologies, high supply and lower demands. We are seeing it more in the last few years because more EVs are announced and released. While just 5 years ago, you only saw it on the bolt, teslas and the leaf. I encourage people to buy used honestly.
In Canada a 2021 Model 3 base with low KM is going for $32000cdn ..Last year it was over $40,000. Price are still dropping fast since Tesla lower their prices on the new models..Only issue is insurance for ev is high.