When I'm ready to go EV, I'd probably go Tesla.
But I like the styling of the Buzz more and then the Kia.

 

You actually did better than my wife. She wouldn’t even thought to unplug it. The car and the plug 🔌 would’ve been on a tow truck!!

 

Model X and Model Y are supposed to be "SUVs" too and look nothing like SUVs. If they want an EV that looks like an SUV they should get a Rivian.

 

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.

 

EV9 is definitely lease only territory assuming the numbers work for them

 

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?

 

Thank you, I've been waiting for someone to ask this.
It would seem someone has to take the depreciation hit, but who?

 

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.

 

Yeah, that helps. And I've seen a lot of sale prices FAR below MSRP. And still seen some residuals that are far above the actual value of the car at the end of lease.

Somebody is eating a big loss somewhere, either on the front in or the back end, unless MSRPs are massively inflated.

 

Doesn't change the fact that its the most SUV looking EV.

The manufacturer is eating the cost of the subvented residual. Its nothing new, car companies have been doing this forever...BMW is famous for it. Thats how you cann drive a $130,000 7 Series for $1,250 a month.

 

And because the $130k is just a vastly overinflated, made up number to make drivers feel like they are driving something worth more than it really is?

 

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.

 

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

 

Looks pretty good but 40 sensors? Maybe that's why it costs so much.