[DNGEGN2022]

Not to long ago I could have traded in my EV6 Wind/AWD/Tech for MSRP ($53,000) with 5000 miles on it. Now Carvana is offering $40,000, local dealers are lowballing claiming they are selling for $40-45k at auctions and won’t go a penny over that. Did Elon just destroy EV values with his Tesla price drops or an I missing something. May be silly of me to be so concerned….

 

[Hawk]

Multiple factors. Dealers are now selling at MSRP and have inventory. Combined with Tesla price drops, this is the result.

 

[mattun]

It's simply the auto industry getting back to normal. Remember before 2020 when your new car devalued 20% as soon as you drove it off the lot?

 

[noles1983]

Tell me about it, been waiting to sell my Wrangler when my EV6 comes in. Already down from 24k to 20k. Luckily Wranglers hold their value extremely well, compared to the rest of the market. Still...my damn car needs to get here already.

 

[Planoman]

Timing is everything! Got several quotes (52k-54K) from dealers last week to sell my First Edition to get a Tesla MY Performance but the numbers just don't make sense to take a loss of a few thousand on my Kia in less than a year even with the $7500 tax credit on the Kia. Maybe if I qualified on the tesl but I don't. Gonna keep my EV6 another year and see how the market shakes out.

 

[mattun]

It seems nuts to me that dealers were giving MSRP for lightly used in demand cars at the height of this. Unless it was all just relative. How much over MSRP were they charging on the new car you that would have bought?

 

[DNGEGN2022]

It seems nuts to me that dealers were giving MSRP for lightly used in demand cars at the height of this. Unless it was all just relative. How much over MSRP were they charging on the new car you that would have bought?

Telluride SX-P-X-PRO. I can get it for MSRP, + their interior/exterior protection thing..( which is the markup in my mind) @ $1500

and against my better judgment,I am beginning to consider the model Y.The price drop is great, but now they softened up the suspension on the new ones.

 

[shin shin]

Queried last week too. Go price from a local dealer for 35k, 34k from Carvana, 39k from Vroom, 45k from Algo. I paid 58k OTD include a little markup for my AWD wind at last October.

The depreciation really hit me. I even consider sell the car for 45k and get the new Model Y LR with the tax credit. For this way I still paid less for a Model Y compare with price at Oct, and I can feel better about it (I am not that back comparing with people who bought Tesla before price drop).
The depreciation just enlarge the drawbacks of my EV6. Less range, poor CSS network and all software things include navigation with the preconditioning.

I really struggled a lot in last weekends, but I know if I don’t sell the car, there is no loss.The longer I drive the car the less depreciation per year on the car.

 

[avh]

Queried last week too. Go price from a local dealer for 35k, 34k from Carvana, 39k from Vroom, 45k from Algo. I paid 58k OTD include a little markup for my AWD wind at last October.

The depreciation really hit me. I even consider sell the car for 45k and get the new Model Y LR with the tax credit. For this way I still paid less for a Model Y compare with price at Oct, and I can feel better about it (I am not that back comparing with people who bought Tesla before price drop).
The depreciation just enlarge the drawbacks of my EV6. Less range, poor CSS network and all software things include navigation with the preconditioning.

I really struggled a lot in last weekends, but I know if I don’t sell the car, there is no loss.The longer I drive the car the less depreciation per year on the car.

Didn't you also get a tax credit for EV6?

 

[shin shin]

Didn't you also get a tax credit for EV6?

No, I bought it at Oct, the time tax credit has stopped on Korean cars

 

[avh]

No, I bought it at Oct, the time tax credit has stopped on Korean cars

Sorry to hear that. This is a lot of depreciation for a few months.

 

[Starxplor]

It's simply the auto industry getting back to normal. Remember before 2020 when your new car devalued 20% as soon as you drove it off the lot?

It is amazing how many people forget what it used to be like before the pandemic. I had someone ask if I was upset that the vehicle I bought because it was resellable near MSRP was now going down in value... had to explain that I buy cars to use them, not to flip them, so any residual value I would look for is at least 5 years, maybe 10, down the line. (My friends were surprised I sold my last car 'early' at 7.5 years old to get this EV6)

 

[DNGEGN2022]

No, I bought it at Oct, the time tax credit has stopped on Korean cars

They extended it to march of 2023 I thought.

 

[shin shin]

They extended it to march of 2023 I thought.

Not for KIA and Hyundai, they stopped at Aug 17th at the time the new rule was signed

 

[voxel]

If you’ve been following auction prices - the wholesale market started tumbling around late July. Fleet sales are back, car rental agencies aren’t buying at auction, new car supply is up, interest rates are higher, etc.

Anyhow, I wish EV owners were armed with more historical knowledge on past depreciation. EVs have one the worst depreciation of all cars types (very similar to luxury cars). Expect 50% depreciation in 36 months because that’s what carmakers expected back in 2020/2021 and many wrote EV leases to have 52-54% residual values after 3 years. Check out EV lease residuals and compare them to gas cars.

I personally would not touch a Tesla currently. The increase in supply has crushed values. See how far values have declined in the past 5 months

 

[mattun]

With EVs, it’s the “You know, replacing the battery will cost more than the whole car” rip that’s been repeated a million times by every friend of guy buying a new EV the past decade that really kills the resale value. I truly believe it’s a small chance, but ultimately you’re dealing with an unknown with the EV6. Like I THINK it’s a good long term gamble because the likelihood of repairs in general is lower, but the whammy of battery failure is always there and we don’t really have any real long term data on the fail rate of these huge new batteries. Like Kia is an excellent reliability manufacturer for cars with a couple EVs under their belt so they probably are a much safer bet for building a reliable EV than say Dodge, but you can’t assume there’s zero chance of a Bolt-like recall or the batteries fail at a high rate five years down the road. I’d just recommend the better mindset going in would be you finally have all the car you need in an EV and having the intention of driving it into the ground rather than flipping it in a couple years for the EV6 2.0 with 400m range

 

[KiaevCan]

I also like to stipulate that that happened with hybrids too a decade ago - don’t buy a hybrid, lease it because you’ll have to deal with a $10k repair I’ll after 5 years (never mind that the warranty is 8 years but facts never got in the way of a rumour).

Resale value only matter if you’re the type that changes every few years or if you have to have the latest updates/upgrades. Otherwise just be happy with what you have. You’re lucky because you got it ahead of everyone and the EV6 is a pretty advanced EV. Plus, you got it with lower interest rates and with a tax credit than if you were to purchase one now.

 

[Ian Mac]

It's not just Tesla discounts and supply chains improving (they aren't for many suppliers). There's a swathe of very competitive Chinese EVs on their way. In the UK we have the MG4, which is a 280 mile hatch for under £30k.

 

[Lamrith]

It's not just Tesla discounts and supply chains improving (they aren't for many suppliers). There's a swathe of very competitive Chinese EVs on their way. In the UK we have the MG4, which is a 280 mile hatch for under £30k.

I love that MG is still around over there. And to think the prince of darkness making EVs. I hope there is some Lucas parts in there someplace.

 

[voxel]

If you want an example of horrific depreciation.. check out Polestar 2s. MMR/wholesale is about 30% less than MSRP for cars less than 6-9 months old.

You can buy a pre-owned fully loaded 2021s for $50K from Polestar directly - which were mid/upper-60s less than a year ago.