jrmckinley

I'll let the mods decide if this can/should be its own thread or should be merged elsewhere, but I am curious for people's thoughts here. The used EV market is pretty insane right now with prices of every brand being out-of-whack in a depreciation schedule. A quick search in my zip code shows a Certified 2022 EQS 450+ with 10k miles for $56k asking price (current sticker price $105k). 50% depreciation in a car 2 years old with 10k miles?

I bought my MYP from a local Mercedes dealer. They have the identical car, but 1 year newer (which makes it comparable since I bought mine about 18 months ago) and the asking price is $18k less than what they were asking when I bought mine.

So when there is this type of gap between a 1 or 2 year old car and buying new, it makes sense that more people would buy used. Then new car sales for the same brand go down. Demand looks "soft." Car manufacturers like Ford, GM, say they're going to slow EV production. Companies like Lucid, Tesla, Rivian who are 100% EV have nowhere to hide because they have no diversification in the portfolio. Is the used EV market what is crushing the stock price of EV companies? And why are EV's not following a traditional depreciation schedule?

Allen K

iTrader: (4)

Tesla price cuts have thrown everything out of whack. Used prices had to drop to remain 'competitive,' and other manufacturers had to drop prices to remain competitive which then impacted their used prices. Honestly if I was in the market for a new EV right now and didn't want a Tesla, I would wait until early next year to get one with a native NACS port. Granted the average buyer might not even know about the looming switch, but I'm confident that's playing a role as well

jrmckinley

I'm not sure that I feel an EQS 450+ buyer is cross shopping against a Model S, but I could be wrong. It's just crazy to see a $105k car go for $55k (asking) within 2 years. So did Tesla create their own mess here by tanking the value of used cars so much that people can't justify buying new? There'd be 2 issues - 1) big gap between new and used prices 2) fear of buying new leading to a massive depreciation of that car

And I'm no expert on leasing, but for those who are, I'm curious if EV leasing is the best deal going right now. It seems that the pricing for leases is attractive given the potential depreciation you'd see when you turn the car in..??

Allen K

iTrader: (4)

Leasing is the way to go because manufacturers should flow down the $7,500 credit directly to the leasee even if they normally wouldn't qualify for it. With how quickly the tech is evolving too, it's not a bad idea to lease. Occasionally trims will be de-contented (Rivian launched with a better sound system and extra 12V outlet and removed them after the first year), but overall the tech should improve over time.

The EQS series as a whole has underperformed sales wise so they're probably going for a decent discount off the top which then adds additional pressure to the used prices.

Tesla cares about new car sales because the Wall St. cares about new car sales. Given the new lower price of new cars, I'd say they're making used cars less attractive instead of more. With your Y, rona made the used car prices were crazy until the price drops too. There were people selling their old Teslas for more than they originally bought them for

bitkahuna

iTrader: (20)

i thought they just cared about 'deliveries' which could be sold or leased?

i agree. and the 3 refresh is probably crushing the resale value of older 3's. the y refresh when it comes will also do that.

took me a while to realize 'rona' meant covid.
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Allen K

iTrader: (4)

The illness that shall not be named Can rephrase as they care about moving new units regardless of sales or leases

B Dot

All the big incentives to get people in a new EV makes the preowned not worth much. If you arent 100% sure you are keeping an EV for 5-6years leasing is the way to go. Market on them too volatile at the moment. A 23 i7 with a 130k msrp is doing like low 80s at auction with less than 10k miles lol. Dealers are afraid of EVs with the price cuts so used market is crazy now.

Margate330

Crazy as in good deals to be found?

B Dot

maybe for a buyer. But if you own one and want a new car more than likely way upside down.

jrmckinley

I was just about to say I'd buy an i7 at $80k but then I realized the name of the game is to lease the EV..! Doh! I have to fight my own bad habits!

Wonder what lease deals look like on those.. I love the look of them.

RNM GS3

MB is giving away the EQS especially last year so its not really 50% depreciation when 1st owner probably got 25% off sticker.

I think used EV market will continue to crash especially as new EV cars become more affordable and Tesla continues to lower prices.

Best to lease unless you keep it for 6yrs or more.

703

Simply because there is no such thing as a classic EV. They are seen a technology appliance and no one wants an old one.

Unlike a 40 year old Toyota GT which can still fetch $1m.

Margate330

This makes sense to me.

Many years ago I got killed on my trade in value, what the hell?

I told the dealer it can't be right because I paid $$$x dollars for it!

He then said, yeah but there were rebates on the car so of course that lowers the new price AND trade in value.

Duh, nobody told me,(and I got no rebates).

* Pre internet days so that's my excuse for not knowing. Lol. 🤔

patgilm

Depreciation on the EQS makes sense to me, a friend of mine bought a EQE AMG SUV at the end of last year and got $30k off sticker which was $130k.

703

Thats not depreciation. Just a discount off sticker. Like the EV6 GT which is always below sticker.