Electric car depreciation

[MikeInWimbledon]

I will share my experience and observations on here, but never tell anyone what they should do or not do!
We are all very different and are in different situations.....and I've been told I'm more different than most....

Now corrected: "But then I remind myself that @Mactech sets out the very persuasive case for using an I3, or 500e, topped up from a 3 pin plug, for short range work."

 

[Bobby Dazzler]

Aye, but it's the 2017 limited edition RIVA that catches my eye whenever I see it on the street. (£10k with 40k on the clock)

But then I remind myself that @Mactech tells me I should get an I3 for short range work.

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View attachment 154691

I do rather like the Riva. There’s a 500c Gucci in the village which is a bit spesh too.

 

[KillerHERTZ]

Dear all.

Please keep UK politics, including mentioning certain parties policies etc out of this. Use the politics thread

 

[Londonscottish]

There was a news story recently that they had reduced production of the 500e due to poor sales. And only a couple of days ago it was reported that they were looking at re-engineering the 500e to take an ICE. Both are mentioned here:

Electric Fiat 500 could be given petrol engine | Autocar

Current petrol 500 could be replaced by a converted 500 EV as new EU cybersecurity rules come into force

www.autocar.co.uk

Wow that's interesting. I'm not surprised 500e doesn't sell well new.

I bought my petrol one when it was 6 years old for £7k. IIRC, retail for one like that (non-Abarth but all the toys) was supposedly £16 or £17k although I bet noone paid much more than £14k or £15k at the time.

Last year I specced up the equivalent 500e and it was £32k new. Literally double. Mental.

Having said that, 3 year old 20k milers are now £13-£14k so in a coupe of years they'll hit my psychological £10k price point at which point I'll have a serious look. It would be perfect for me as I have a drive where I could charge it overnight and most of the trips are very short.

TL;DR EV's are depreciating to their natural point and that suits me.

 

[Londonscottish]

I watched it. He did buy it with Porsche finance. The fact that he’s talking about negative equity suggests that it’s HP or PCP rather than a lease.

Ending a lease eary means paying the remaining schedule of payments over the full term, and has nothing at all to do with the value of the car at that point in time.

It’s common for car finance deals to result in negative equity when terminating early. In percentage terms you could find yourself in the same situation in a supermini..

In a normal market the rate of depreciation reduces over time but the repayments remain the same, and so as a result payments catch-up towards the end.

This is not dissimilar to mortgage repayments reducing the capital at a faster rate towards the end as interest makes up a smaller proportion of the monthly repayment.

Like many manufacturer finance deals designed to shift metal, the residual value is likely to be high, as doing so reduces monthly payments bagging more sales.

If he bought a £120k luxury car on a finance deal, and didn’t expect to be in negative equity in the event that he chose to terminate early, then he is very naive or daft.

Aha! Now it makes sense. Thanks.

 

[Londonscottish]

I do rather like the Riva. There’s a 500c Gucci in the village which is a bit spesh too.

I'd love one of those as it would make a perfect matching set with my E500; identical paint and interior colours

 

[BTB 500]

Aye, but it's the 2017 limited edition RIVA that catches my eye whenever I see it on the street. (£10k with 40k on the clock)

That's a very smart little car. I've quite a soft spot for small runarounds having owned a few in the past e.g.

Fiat 126
Mini Clubman
Metro
Mk1 Micra
Mk2 Micra
Jazz

Maybe I'll replace my SL500 with one at some point (as that barely gets used now).

 

[BTB 500]

They’re great value secondhand, just like the previous generation ICE 500. I’ve been looking at the, for my daughter. The range is pretty good on them too.

'Real world' range seems to be around 150 miles, which is perfectly adequate for typical usage.

Fiat 500e Hatchback 42 kWh

All details and specs of the Fiat 500e Hatchback 42 kWh (2020). Compare price, lease, real-world range and consumption of every electric vehicle.

ev-database.org

 

[Londonscottish]

That's a very smart little car. I've quite a soft spot for small runarounds having owned a few in the past e.g.

Fiat 126
Mini Clubman
Metro
Mk1 Micra
Mk2 Micra
Jazz

Maybe I'll replace my SL500 with one at some point (as that barely gets used now).

There's something liberating about a small car with a short wheelbase and no overhangs. My 500 changes direction with a flick of the wrist. It's extremely easy to thread through gaps, no parking space is too short. I don't feel short changed when I walk past the E Class and jump in it.

 

[Londonscottish]

'Real world' range seems to be around 150 miles, which is perfectly adequate for typical usage.

View attachment 154694

Fiat 500e Hatchback 42 kWh

All details and specs of the Fiat 500e Hatchback 42 kWh (2020). Compare price, lease, real-world range and consumption of every electric vehicle.

ev-database.org

That would be perfect. 95% of the journey my 500 does are 2-3 mile round trips. Sometimes my wife drives a few junctions down the M40 to see her mate in Bucks. She always takes the Merc for that journey as the (1.2) Fiat feels tiny and is the lack of acceleration at motorway speeds makes you feel a bit vulnerable. I suspect she'd be much more likely to take the 500e that the 1.2.

 

[markjay]

There's something liberating about a small car with a short wheelbase and no overhangs. My 500 changes direction with a flick of the wrist. It's extremely easy to thread through gaps, no parking space is too short. I don't feel short changed when I walk past the E Class and jump in it.

Indeed:

Or (though not small):

 

[Londonscottish]

Indeed:

Or (though not small):

I remember being surprised at the size of the Ioniq. Jonny Smith mentioned it on one of his podcasts as having the proportions of a supermini but being way larger.

 

[190]

There's something liberating about a small car with a short wheelbase and no overhangs. My 500 changes direction with a flick of the wrist. It's extremely easy to thread through gaps, no parking space is too short. I don't feel short changed when I walk past the E Class and jump in it.

We have had small cars as a 2nd car in the household and I've always enjoyed driving them.

What a shame then that emissions regulations are rapidly reducing the choice. The Fiesta, VW UP, Audi A1 and Audi Q2 have already gone to mention just a few. MB are even dropping the A class. If I wanted to replace my C class with a premium smaller car in retirement there really isn't going to be much much to choose from.

Even the car manufacturers are becoming exasperated with effects of ill thought through policies that are forcing them to drop small cars.

Stop regulating us out of business and make a plan: Renault boss attacks politicians | Auto Express

 

[markjay]

We have had small cars as a 2nd car in the household and I've always enjoyed driving them.

What a shame then that emissions regulations are rapidly reducing the choice. The Fiesta, VW UP, Audi A1 and Audi Q2 have already gone to mention just a few. MB are even dropping the A class. If I wanted to replace my C class with a premium smaller car in retirement there really isn't going to be much much to choose from.

Even the car manufacturers are becoming exasperated with effects of ill thought through policies that are forcing them to drop small cars.

Stop regulating us out of business and make a plan: Renault boss attacks politicians | Auto Express

"Regulating out of business"? I suppose that the tobacco companies could have argued the same at the time.

If car manufacturers sell less new cars, then either (a) people will hang-on to their cars for longer before replacing them, or (b) some people will give up altogether on buying a car and will use alternative means of transport.

I can see the argument when it comes to inconveniencing the greater public, but where it affects car manufacturers, I am not so sure that the government should prioritise their profit - and securing jobs - over public health.

 

[ALFAitalia]

Its not being done for "public health" reasons....you are confusing it with ULEZ....the government(s) are doing it for climate crisis reasons.

 

[Bobby Dazzler]

If I wanted to replace my C class with a premium smaller car in retirement there really isn't going to be much much to choose from.

I’ll leave this here

 

[markjay]

Its not being done for "public health" reasons....you are confusing it with ULEZ....the government(s) are doing it for climate crisis reasons.

It's both, actually. I was referring only to the public health element (so not to CO2 emissions).

 

[SmartAmg]

Its not being done for "public health" reasons....you are confusing it with ULEZ....the government(s) are doing it for climate crisis reasons.

If I was cynical I'd say for financial reasons.

 

[ALFAitalia]

I know where one of those Toyota/Astons is..........

 

[st13phil]

"Regulating out of business"? I suppose that the tobacco companies could have argued the same at the time.

A slightly different proposition I'd argue, not least because it's never been a major sector for European employment. It employs around 1.2million people globally, but mostly in leaf growing which occurs outside Europe.

By contrast, the automotive industry employs around 13million people throughout the EU - roughly 7% of all employment - and circa 800k in the UK. The social consequences of that employment disappearing by ceding it to China shouldn't be overlooked.