Electric vehicle depreciation

As with all depreciation whether it be ICE or EV you shouldn't work it out from list price, but the price dealers are selling them new for. So if the list price is 50K, but dealers are routinely selling them new and unregistered for 45K, it's the 45K the depreciation should be calculated from.
 
Last edited:
Pickers said:
How long is a piece of string?

Ok it's probably an unanswerable question, but a new electric vehicle priced at just shy of £40k today. What's a typical (plus or minus 5k) market value estimate after 4 years? Assuming maybe 20,000 mileage in that time?
Click to expand...
rough guess maybe £15k.......
this is great news for the savvy 2nd hand shopper but does mean unless you have access to some of those sweet company car leases that its a tough sell to buy new with your own hard earned cash.
 
Last edited:
Thanks all. So a mixed bag.

The pension hit from SS is a timely consideration but I'm also.looking at maximising (or is that minimising?) losses from high tax rates.

That and my Aygo is starting to worry me and may need replacing sooner rather than later...
 
The other caveat to salary sacrifice - check your scheme is actually offering competitive rates, not all of them do. The one available to me is usually completely rubbish, it looks like they just inflate all the prices by 40% so 20% tax payers get absolutely shafted if they're daft enough to use it, 40% tax payers get a maintained lease for about the same sort of price is available on the open market.
 
To actually answer the OPs question, the best analog is probably the Tesla model 3 as the only EV which sold for roughly £40k in any significant volume in 2019.

The cash price back then was about £37k a private sale with under 40k on the clock starts at about £18.5k and retail is more at around £19.5k. Higher milage examples are a bit cheaper.

These numbers in themselves are actually very normal for a 4 year old car if you look back to pre Covid.

The issue comes with trade in prices, they are well below these prices and there is a huge gap between what dealer is willing to pay and retail prices at the moment. I’d expect trade in will be ~£13-14k at the moment which is giving it away really.
 
Last edited:
Pickers said:
Thanks all. So a mixed bag.

The pension hit from SS is a timely consideration but I'm also.looking at maximising (or is that minimising?) losses from high tax rates.

That and my Aygo is starting to worry me and may need replacing sooner rather than later...
Click to expand...
There doesn't have to be a pension hit for SS really. You just increase your pension contribution to what you are paying now to offset it.
 
Kenai said:
The other caveat to salary sacrifice - check your scheme is actually offering competitive rates, not all of them do. The one available to me is usually completely rubbish, it looks like they just inflate all the prices by 40% so 20% tax payers get absolutely shafted if they're daft enough to use it, 40% tax payers get a maintained lease for about the same sort of price is available on the open market.
Click to expand...
I'm actually thinking that this may be the case... A quick comparison shows the same car deal is £100pcm more than a private lease, or (factoring in initial cost that you have to pay for private lease) the net reduction to take home pay with the SS price is the same as private.
 
b0rn2sk8 said:
Are they a like for like lease (e.g. SS is likely fully maintained and includes insurance)?
Click to expand...
Not quite. Private is maintained but not insured. So at £100 pcm less, that's quite some headroom for insurance and cost of charger install to take.it to SS level (and also avoiding concern over impact on pension)
 
Pickers said:
I'm actually thinking that this may be the case... A quick comparison shows the same car deal is £100pcm more than a private lease, or (factoring in initial cost that you have to pay for private lease) the net reduction to take home pay with the SS price is the same as private.
Click to expand...
lol nawh. Pics or shens
 
The problem is that the salary sacrifice scheme is artificially running the sales of EV's. Now we are at a point where cars are starting to flood the market and because no private buyer wants to touch them new or second hand that we begin to have this mess.

Government have wasted tax payers money on propping up the car industry. It should be up to them to sell a product that consumers want. It is pretty obvious now the government will end up back tracking on their mandate at some point in the future.
 
Last edited:
Yep there is a whole fleet of cars no one wants now. Unless they become dirty cheap, they will sit on forecourts forever especially with the tax bomb coming.

And the petrol/diesel new car ban will probably end up being pushed back to 2040, the original target.
 
Last edited:
Have you asked yourself why private buyers don’t to buy used EVs when they are the same price to buy but cost a fraction of an ICE car to run?

It’s probably got absolutely nothing to go with the huge FUD campaigns playing out via the media and on the socials combined with the complete vacuum of leadership within the current government.
 
They don't really cost a fraction to run though when you factor in everything and if you can't sell the car on when you're done with it, that's a big problem.

Only time it is, is when you aren't having to buy the car yourself. Which is why we are where we are.
 
Last edited:
b0rn2sk8 said:
Have you asked yourself why private buyers don’t to buy used EVs when they are the same price to buy but cost a fraction of an ICE car to run?

It’s probably got absolutely nothing to go with the huge FUD campaigns playing out via the media and on the socials combined with the complete vacuum of leadership within the current government.
Click to expand...

This is the typical response who totally lets the negatives of owning an EV completely fly over their head. Is an EV in its current state a better proposition than an ICE car for a private buyer? The simple answer to that is no. Whatever you save on fuel costs is completely wiped out by depreciation and an ICE car will do everything that an EV can do without the negatives.
 
Given the number of new white Teslas on the road from BIK deals, I don't expect their used residuals to hold up particularly well in a couple of years, particularly with the cost of insuring them once it's not on a company car.
 
Electric vehicles depreciate as fast as driving off a cliff. Its the reason why businesses have been dumping Teslas and going back to petrol
 
You must log in or register to reply here.
Back
Top Bottom