General EV Conversation
Lexus Champion
Joined: Apr 2019
Posts: 11,126
Likes: 1,560
From: FL
Lead Lap
Joined: Sep 2020
Posts: 3,958
Likes: 409
Lexus Fanatic
Joined: May 2012
Posts: 68,096
Likes: 3,870
From: Maryland
Lucid Gravity is supposed to be an SUV.
Don't get me started on Toyota going all in on 4-cylinder engines. I'm currently trying to convince a family member not to buy a new Highlander for this very reason. They need a larger SUV and honestly there is no EV version of this on the market, not one that is designed for utility above most other things.
Don't get me started on Toyota going all in on 4-cylinder engines. I'm currently trying to convince a family member not to buy a new Highlander for this very reason. They need a larger SUV and honestly there is no EV version of this on the market, not one that is designed for utility above most other things.
Lexus Fanatic
Joined: Sep 2010
Posts: 25,917
Likes: 4,274
From: Alberta
Not sure the date Farley was speaking here but he is not painting a rosy picture of Ford's future. Kinda scary.
A Rivian in Canada? Even best case getting service is difficult in these parts impossible.
A Rivian in Canada? Even best case getting service is difficult in these parts impossible.
Last edited by LeX2K; Jan 4, 2025 at 11:07 PM.
EV9 is definitely lease only territory assuming the numbers work for them
Lead Lap
Joined: Jul 2007
Posts: 4,449
Likes: 604
From: SC
How are these cheap leases on EVs working?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
Lexus Champion
Joined: Apr 2019
Posts: 11,126
Likes: 1,560
From: FL
How are these cheap leases on EVs working?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
It would seem someone has to take the depreciation hit, but who?
CL Community Team
Joined: Feb 2007
Posts: 9,314
Likes: 585
From: IL
How are these cheap leases on EVs working?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
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Lead Lap
Joined: Jul 2007
Posts: 4,449
Likes: 604
From: SC
One big factor is Federal (and in some cases, State) rebates. The residual is based on the MSRP, but the payment is based on the difference between the sale price and the residual. So up front, nearly everyone gets to lower the sale price by $7500, which most wouldn't qualify for on a purchase. Add some additional manufacturer/dealer incentives and a healthy down payment, and the capitalized cost diminishes pretty quickly. Therefore the monthly lease payment does as well.
Somebody is eating a big loss somewhere, either on the front in or the back end, unless MSRPs are massively inflated.
Lexus Fanatic
Joined: May 2012
Posts: 68,096
Likes: 3,870
From: Maryland
How are these cheap leases on EVs working?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
The residual value of a car is one of the most important factors in the cost of a lease, and it's based on the value of the car at the end of the lease. If these EVs are depreciating so quickly, how can the residual values be higher enough to allow them to be affordable.
Is someone just eating a loss at the end lease?
Lead Lap
Joined: May 2010
Posts: 3,902
Likes: 1,514
From: San Diego, CA
exactly. The whole leasing business is designed to create three year customer renewals and a constant supply of CPO inventory. Sell the same car multiple times, and sell the same customer multiple cars. No one does it better than BMW. Both BMW and BMWFS are profitable, and 2024 saw excellent results. Using leasing to drive a rinse and repeat business model works.
Lexus Fanatic
Joined: May 2012
Posts: 68,096
Likes: 3,870
From: Maryland
Look at the marketplace, $130k is what a flagship sedan costs. You can make an argument that everything is "vastly overinflated". Your LS430s cost new not much less than what $130,000 is today. Fully loaded UL LS430 in 2001 was about $68,000, adjusted for inflation thats $122,500 today.
https://www.shm-afeela.com/config/model/afeela1
Sony/Honda Afeela reservations are available if you live in CA. $200 refundable deposit and a supposed delivery starting in mid 2026. Pricing seems non-competitive at $90K for the Origin trim or $103K for the Signature trim and limited specs available
Sony/Honda Afeela reservations are available if you live in CA. $200 refundable deposit and a supposed delivery starting in mid 2026. Pricing seems non-competitive at $90K for the Origin trim or $103K for the Signature trim and limited specs available