100% No one should be looking at a car as an investment at any level.. expect to lose most of its worth. Ive had my model y for 3 years now and it has been flawless for me and I expect to keep it as long as I possibly can to get my worth from it. If youre someone who gets a new car every couple/few years then youve earned the right to lose the tons of money you are.

I just got into a 2013 Tesla Model S P85 with only 18k miles on it for 24k out the door. It's my first EV replacing a 2013 KIA Soul that finally died after 258k miles. I have been a fan of EV's for a long time and I am loving this car so far.

Beat depreciation? Heck, I am going to use it to get a good deal on a used one.

Most people I know buy a car and drive it until the wheels fall off. Depreciation therefore isn’t even a consideration. Huh. Might just be the social strata I live in.

All excellent information. I really hate all the articles about EVs costing more to own and operate that wait until paragraph three past the third insert ad to disclose that it's only true if you include depreciation. Depreciation used to be only relevant as a tax write off. No one expected to be able to flip cars like they have been in the last few years, and honestly the financialization of cars is exactly as bad for the car market as the financialization of houses is for the housing market.

Also another way is to buy a two year old model with low miles. Not a new car but can save a terrible amount of money.

EVs' bigger depreciation is normal because the technology is evolving very rapidly (better autonomy, better charging speed, better security, better features, ...). My way to deal with depreciation ... I keep my vehicles 10+ years.

2014 leaf here in Maine. 85 miles on the guess-o-meter every morning. We are totally satisfied. Not selling.

Until I bought my last car, my auto plan had been to buy older cars from private individuals, having them inspected by my mechanic, and planning on fixing a bunch of little things. It’s been pleasant to have none of that for the last year.

When it comes to EVs, it seems that everything is bad news. Price goes up: EVs are too expensive and nobody can afford them, Price goes down: Used EVS quickly lose their value and you'll regret investing in one.. Fortunately, I am out of this game. At my age I figure I've purchased my last car (Tesla YLR). I didn't wait for prices to come down or for rebates to be passed because I valued the extra years I would have to enjoy driving it rather than saving a few dollars and lose that enjoyment. I don't check the depreciation (or value retention) because a car is not an investment. It's valuable to me right now.

So what I heard was that decent used EVs may be a bit less expensive now.

I am only at the 4 minute mark...but barring insurance claims, depreciation is a non factor, or should be. Cars are bought to be driven, not resold. This fallacy of needing a new car every few years is just a symptom of our broken society. Planning on selling a depreciating asset is a poor financial choice.

The biggest way to avoid depreciation, is to hold on to your car as long as possible. Yes the longer you have it the more it depreciates, but as you pointed out with your bolt, there gets to be a point where there's not much more depreciation happening. The worst deppreciation is always in the first few years. So instead of trading your car every 3 years, where you're guaranteed to get the worst part of the depreciation, keep the car for 10 instead. Also, if you can find a car that's 1 to 3 years old instead of brand new, you can let someone else take the initial depreciation hit!

I think the concern over EV depreciation is rather elitest. My wife and I just bought a maxed 2022 iX 50, for just under $64K. Our iX cost over $118K, when new, and out of our price range. Our other EV is a 2022 Polestar 2, which we are leasing. Upon the end of the Polestar 2 lease, we are buying a 2023 Audi eTron GT, since that car's resale value will have dropped from $120K to less than $65K. It is a fool's errand to buy a new EV, due to the vast number of EV's which are leased. Buy a used EV, after 2 years or when the max depreciation hit has taken place.

If you have access to a garage, park it inside! I have a 2005 Subaru Outback that looks and feels like new because it was garaged its whole life so the outside and inside is in very good shape.

I got hit with depreciation pretty hard. In January of 2021, the head gasket on my Prius blew, and to fix it was more money than I had at the time, so I tried to find the cheapest decent EV I could at the time, which was a 2017 Nissan Leaf. And it was $19k USD out the door... It's in EXCELLENT condition & right now it's worth about $6k or so lol. But, I did get the gap insurance so hilariously the car is actually worth more to me if somebody smashes into it in a parking lot, than it is taking me to work roflmao.

It always makes me laugh when I hear people thinking of a car as an investment, rather than simply a tool to do a job. I've dealt with enough problems on both newer and older cars to know that anyone expecting anything other than a massive loss of value due to normal wear and tear, let alone faults and recalls, on a vehicle they buy for anything more than scrap value, just doesn't accept reality.

My 22 year old pickup truck stopped depreciating a long time ago. If I had replaced it every 7-8 years and borrowed money for that, I would have locked in depreciation losses and finance costs. I save a ton of money on car washes and paint protection film too. In a few years, I will take advantage of depreciation on someone's version 1.0 EV pickup and keep it until I die.

Vehicle depreciation is a good thing, as it allows for a used car market to exist. Other than classics and rare vehicles, they have and will always be depreciating assets.

As always, thank you for your insight. I bought a new EV and plan on keeping it for 8 - 10 years. The depreciation is a little concerning, but I'm not overly worried since I plan on keeping it. I also paid if off in a little over a year. I think others have a good point. If you can't afford to make a large down payment, maybe buy used to avoid having to have gap insurance and being up-side-down.

244... Never "invest" in a car. Unless it is already a model that makes $$ on it's own... (Sigh) M is never going to find that plug... Keep Evolving Nikki!!!

I love EV's just to avoid the gas station and oil change. I've been driving a 2012 Mitsubishi i-Miev that I got 8 years ago for $8k with less than 3500 miles on it. 6 weeks ago I got a 2024 Nissan Leaf SV Plus with an $8500 rebate and I also get the $3750 tax credit.

Buying an EV is getting better and better financially. Same problems as phones; newer ones will be cheaper and better, but that doesn't stop people from buying this year's models.

Vehicle Deprecation is usually the least of the concerns about the vehicles I own. Mostly because I never lease, but purchase to own and I keep it for well over a decade, in which all models and conditions basically fall to near scrap level. That said, I replaced my Prius for a Tesla in 2022, where values were rising, and I got about 2k more from the trade in from the initial estimate in January to May during the long waiting period of the time, that is with a fender bender during that wait time. Sadly the car fax emails I got on the Prius showed it was totaled a year later from its new owner.

Another good video. One thing to keep in mind - no car is an investment, unless you purchase a classic and keep it in a temperature controlled garage for decades. As for EV's, we all know the depreciation is greater than the depreciation on an ICE. Gap insurance is a must. I had that on my 2006 Avalanche. Never needed to use it, but it was comforting. I intend to keep my 2022 Ford Mach-e until I can no longer drive. I did sell my 2016 Chevy Malibu hybrid (with the Volt battery/engine setup) for far less than I purchased it. But, I wanted to be out of that piece of garbage.

1. Buy the car you need, not the car you want. Keeping prices down on the front end makes back end depreciation easier. Makes payments lower and usually insurance is cheaper. This goes for getting cars that have very good gas mileage. Less of an issue with a charge-at-home EV but still true - good energy efficiency is a godsend when energy prices are high and is still cheaper when energy is low. A bonus is to develop a taste for practical, efficient cars. People who buy lifestyle, status cars are shallow and not the smartest when it comes to finance. Exceptions for people who are car nuts. Go ahead and get a 30 year old sports car (or whatever makes you a car nut). People will still judge you but we aren't supposed to care about that. 2. Buy late model used. Let the original owner take the initial , steep depreciation OR ... 3. Buy a model year end clearance. They are often discounted heavily so the depreciation is taken at the beginning, they are closer to the end of their model year depreciation curve at the start. If you sell in a few years, the mileage is a year lower per the model year and car usually looks a year newer because it's a five year old car that's only been in use for 4 years. You usually get a better trade in or sale price. 4. Keep the car for as long as you can. Keep it until you are scared it won't get you where you need to go. Then sell it, even scrap it if necessary - the loss at this point will be as low as it will be. We had this in mind when we bought our Bolt. We knew that the used market for EVs was in its early years and that we might not have a viable trade in path anytime soon. I look at new EV prices and see they are getting cheaper, with newer and better features. There is nothing on the market in our price range that is enough of a step up from our Bolt that is worth the high payment. 5. Have a backup plan in case your car gets stolen, totaled, no spare parts available etc and you have no money to just run out and buy a new replacement. How will you get around? Our backup plan is to use our second vehicle, use our local public transportation, buy an ebike etc. Keeping an emergency fund of at least a couple of thousand dollars and a good credit rating, if possible, keeps your options open. 6. Extended warranties and gap insurance are worth considering. I always estimate what the replacement value of our car will be at the end of the standard warranty vs the cost of the extended warranty. Same with the gap insurance - how much would you be upside down on the loan minus insurance payout if the car is totaled vs the cost of gap insurance. Usually I just accept the risk because we bought cheap cars with lower residual values and we have a backup plan if we suddenly lose the use of one or both cars. But your situation may be different if you have a pricier car or less financial cushion.

Abstracting from your hand and the related pain, the crash of your F150 actually generated quite interesting content - the information on insurance and process is really interesting.

Three tips to minimize deprecation: 1) Buy a cheaper car (less value to depreciate) 2) Buy used instead of new. 3) Keep your car for a long time. For those that choose to throw away $100,000 on a Cybertruck and find that in 3 year's time, that truck's value is down to less than $50,000, understand the problem is not EVs in general, the problem is your individual decision to buy and expensive, hyped-up car, and your lacking the patience to wait for the hype to fade and the price to drop.

Unless you churn through cars, depreciation doesn't hurt you. You literally only care if you're selling your most or second most expensive asset, depending on if you own a home. It also hurts if you car gets totalled. If you keep your car for many many years as we all must learn to do, then you don't care about supposed depreciation. The EV owners I see railing about depreciation are creating their own misery by purchasing for short term ownership and expecting that the world owes them high value for a car they've used. The upside of depreciation is that insurance and registration costs fall. New car buyers should count themselves lucky, and drop the attitude that their privilege should warrant a new car every three years. That attitude in the face of our Climate Crisis is frankly outrageous. Choose your purchase carefully and take care of it. This is the golden age of EVs. Soon they'll be forced to shrink and then go away entirely. I find it hard to feel sympathy for EV owners trying to flip their cars.

TIL gap insurance is a thing. Good to know!

I think it might be a good idea also to not just buy used (or yes lease new) but also buy something used that is going to be made in mass quantities. That used Blazer EV or ev6 might not set your mind ablaze in excitement but it will be made in large quantities and share plenty of underlying bits and bobs with its platform mates so there should be lots of parts available 8 years from now when things go wrong. Unlike the Volt (and Bolt) of years prior.

Carvana paid me more for my old vehicle than I expect any other dealer would have paid. I'm sure I could have made more by selling to a private buyer but it was worth the absolute lack of effort required. I did almost nothing to seal the deal. They didn't even hassle me over minor issues during the car inspection. Unfortunately, the high price they paid and the minimal effort they put into inspecting my vehicle makes me doubt whether I should ever purchase a vehicle from them. My vehicle was in good shape but it could have been a lemon and Carvana never would have known.

Got to feel bad for those that brought a new EV with probably 80% on finance at high interest rates, only to not only lose their jobs but lose half the value of that EV in first year, then forced to sell or have it repossessed then still owe maybe 60% of the loan and no car!

On the flip side, I wouldn't have been able to afford my first EV without its 75% depreciation over 7 years and a little bit of FUD to make it less attractive to others lol EV depreciation seems to be plateauing a bit, but that may reflect the fact that a lot of decent models were released close to each other about 4-5 years ago.

Length of ownership is usually the best hedge against depreciation when you're buying new

14:37 that right kids, cars are not assets (although that could change if you have one with certain tech).

Massive depreciation isn't a new phenomenon, with dealers often overvaluing their cars. I used to buy used Lincoln Navigators and hybrids for my wife because they were 50% off after two to three years. They would run perfectly for a long time and were wonderful premium cars to own and drive.

Bought a 2018 Bolt with a new battery for 13k this month ❤

It's gonna happen… with any car. One can try to shield yours from depreciation, but there are so many factors in the marketplace that impact it that… resistance is futile.

I bought my first two EV’s after they had been leased and returned. They were substantially cheaper than new. My third EV I got new and plan to keep until something fabulous comes along. I don’t think I have ever kept a car more than seven years and when they are 7-10 years old they are never worth much. I always tell the dealer I drive one in and I drive one out. It’s up to them whether it’s the same one or not.

We need to wait for few changes. 1. Standardized battery packs, which are brand- independent and user-replaceable. 2. A 15 KVA gasoline-fueled power generator installed in each EV of every brand. This would allow to recharge the traction battery without using any charging infrastructure. This is a serial hybrid structure - and the generator was installed on the initial BMV i3 and later removed. These modification would allow EVs to keep thei value in time,

The only car I came close to getting almost no depreciation was my very first car I bought in England, which I sold three and a half years after buying new for only £200 less than its purchase price.

Great video but i dont think anyone would say shield your 1980s cell phone from depreciation. We are in the childhood of evs and the tech in them will be made obsolete at a quick pace.is it not more important that they be made upgradeable or that they are made to last into a second or third life and recycling infrastructure growth?, rather than worrying about depreciation as newer evs come down in price with mass production.

A tip that I was told is to negotiate the trade in price before you ever start the buying process. Places tend to give you a better deal that way.

hope my EV last 12 to 15 years, at that time I will not worry about its worth, really hope dealership will take it off my hands period

EVs depreciate more because of high repair costs. Especially cars like Tesla are like unrepairable blackbox with all the proprietary software only Tesla technicians can work on but at much higher hourly rate than average mechanics.

Thanks

I'm managing my risk by leasing. I'm paying far less for 3 years of ownership than with traditional financing and I am not taking on the risk of depreciation, yet I'll still get any benefits if there is the value happens to be above the residual at the end of the lease.

Unfortunately, severe depreciation is to be expected. The technology is advancing so fast, any car you can actually buy is already obsolescent. I think the only solution is to buy a used car one technology level behind the most recent, and keep it for ten years,

For the last past five years, I have been driving electric cars that I’ve purchased and traded in for others. First Chevrolet bolt a Tesla model three and a Genesis GV60 I recently traded my GV60 and for a Mitsubishi outlander plug-in hybrid. I probably will not consider another electric car until they can reach the mileage of a plug-in hybrid the plug-in hybrid that I have is getting me close to 600 miles of range. And I have been getting close to 80 miles in pure EV mode. And I bought the car at MSRP. Plug-in hybrid are the best vehicles right now.

EVs depreciation feels more like the 2000 -2010 next new cell phone-like issues. I am averse to leasing, but it seems to make more sense until the technology hits a steady state.

Did not know about gap insurance. Legacy resale value and history. Technological and economical changes. Competition.

My $21k 13k miles id4 makes me even happier when I look at the msrp of $45k or the new models of $50k+

Important considerations, thanks.

I want to speak up for depreciation on eVs as a GOOD THING at the moment. For many folk, it is the only thing that makes an eV affordable. Buy one thats maybe 18moths old for 60% of the original price -- makes sense that way, and it gets one more ICE car off the road every time someone converts to electric. And the more-money-than-brains crowd that Mr Musk targets go on funding innovation with the over-inflated costs of the brand new models: because you are paying not only for the car but for the cost of those innovations. So it is a win for the environment at both ends of the market.

Excellent video! I'm taking notes... Anyone have advice for car wraps for the bolt EV?

You forgot buy and hold.

I think we should try to drive up used EV prices by installing lots of level 2 chargers conveniently located for people who don't own their own homes.

Tradiitional auto manufacturing is based on long timelines. The major big ticket components (engines, transmissions, alternators, brake systems, pumps, etc) are mature technologies which have lifespans of decades where the designs are tweaked over that time period and vehicles are mostly the same from year to year. So the difference between this year's last year's model is minimal (hasically the same horsepower, fuel economy, performance). Contrast that with EVs where each yeer there are a raft of new products with appreciably better specs than last year's offerings and you can see why EVs depreciate more over these short timelines. IMHO, I don't think that this situation will change any time soon. When one considers all of the investment in new battery, charging and electric motor technology that is currently allocated, we can expect to see steady advancements in the EV market year over year for years to come. I think that consumers and the auto indstry need to learn how the EV market is going to work. People's attitudes and expectations need to change. I think that EV depreciation will work more like smartphone orr laptop depreciaton rather than like legacy auto depreciation. If your attitude is to buy a car and drive it into the dust, then EV depreciation won't be much of a concern to you. If you go into your EV purchase with the attitude that it will depreciate like a laptop then you won't be troubled. If, howevfer, you think of an EV like a traditional car then you're in for a rude awakening, EVs and ICE cars are about as similar as smart phones and rotary phones.

Funny story: I bought a Spark EV in 2018[?], drove it for ~18 months, and then sold it to Vroom right in the middle of COVID for $3K more than I paid for it!

I bought an EV in November 2023. In January 2024 the same model was discounted in the show room by $10k. My other car was purchased used and I fixed it over 2 years. It’s increased in value by 50% over that time even though I have still been driving it. And it’s not a nice car

Bottom Line: Buy a used vehicle and drive it until the wheels fall off. Pay cash if you can, or pay it off as quickly as you can if you have to finance it. No one with a net worth under $1Million USD should even consider purchasing a brand new vehicle.

EV technology is rapidly improving . I think buyers of EV's want the best state of the art. There is no shielding older EV's and convincing people to buy them from you. Do all your ducking , bobbing , weaving gymnastics , the selling time boxer's glove is going to land hard on your nose.

Well my Korean made Kia EV6 GT Line AWD was when new $118k, we paid $88k for a demo in December 2023 (not in America) got offered $60k for a trade in on a Chinese made Kia EV5 last week that costs between $67k and $85k for the AWD GT Line. Well yeah we will be keeping or EV6 now! Our EV market is almost completely wrecked by our new government!

What about a similar analysis for leases? If we lease are we protected or hurt in general. For example if lease end purchase is higher than real value, what are our options? Negotiate? Just turn it in and buy the same car, different VIN?

There’s plenty of reasons to beat on the MX-30. Short range and idiotic rear doors are the big ones but I’m gonna defend it a bit since I bought one last year. It was and still is the lowest priced new EV available in Canada. I got approximately 25% off msrp and more for my ICE trade in than I paid for it 2 years prior even with a $10000 accident on it so I’m happy with the financial part of getting the Mazda. Range: My wife and I both drive this car. I commute to work daily and we share it on weekends. It’s been a great little city car. I charge it once a week for our 100 km or so of driving. I wouldn’t buy it if I did much highway driving although it is possible if not convenient. Rear doors: Just two of us. Nobody sits back there. I would have bought it if it was a 2 door. Still don’t like the design. Positives: Near luxury interior that looks like most other Mazda models. IE it’s not weird. Comfort. Decent handling. Smooth and quiet. GT model is absolutely full of equipment. Nobody else has one although that could also be a negative. Low payments. Cheap to run and insure. I don’t think it’s for everybody but it’s our only vehicle and we enjoy it so I plan to keep it for many years. 😊

well done!

9:05 are those "unsold EVs" or Mazda ICE?

IF.....I.....FALL...🖤

Car depreciation is like loss value in the stock market-it isn’t real until you sell.

I only pay cash for my vehicles! Never finance!

I'm not sure if Gap insurance is a thing in the UK. Anyone else know?

Would a road trip to Mexico to rent some BYD vehicles be more reasonable that a trip to China? I tried hyper-mileing our 2007 Accord back from the Atlanta area glider club when I left my credit cards at home, drafting/slow acceleration/braking were unbelievably effective. Our drivers in Atlanta are horrible.

...why was that person spray washing the INSIDE of that Bolt?

EV's prices will keep going down because batteries are rapidly getting cheaper and the scale of production is rapidly rising. That is great news when buying because you will pay less but when selling you will almost certainly get paid less. As others have said, buy the car you need (not so much for show) and don't think of it as an investment. But things will get interesting soon for ice vehicles. By 2026 new EV's will be cheaper than an ice equivalent and by 2030 the bottom could fall out of used ice car sales.

Don't buy a car as an investment if you don't like depreciation, by a pre depreciated used if you don't like money and want to always be paying, lease buy a Fisker

Well you could always live in a 15 minute city and put your dollars into a house. It's worth ten times what I paid for it. A Walk Score of 98 makes life without a car easy.

Just keep the car forever. EVs are very reliable for hundreds of thousands of miles.

Different in Australia. Record sales of new vehicles. The range of EVs has never been greater and sales of EV did increase, but as mentioned slower than anticipated. However the increase in sales of ICE (while a lower percentage increase than EVs) totalled more than all EV sales. You would be very unhappy being a Tesla owner with the new price for mod y going from AU$72K to AU$56K in a little over 12 months. Ouch.

All cars depreciate and some far more massively than others. As for battery electrics unless its Cybertruck made by Tesla all that is being sold is something that will send your electrical bill through the roof. Verdict: GM General Motors understands this! but is this true?.......

Automakers don't even want people to buy evs. Because they don't know how to make them profitable businesses.

I get weird audio cuts in viedo.

Buy an ev after it's a year or two old, that's all.

Ok, I'll give the car a clean and buy some floor mats.

Buy a three year old ev. Problem solved. Or. Buy new. 7 year loan so payments are low. Get gap insurance. I think when the new model y comes out, you will see another round of depreciation. In all. Ev cars. Used modelY will hit the market as people want the latest hotness. This lowers the price of used modelY and used model3. Which lowers the price of competing used ev.

Nothing that the trusting groupies can do about the car and house insurance prices/liability they didn’t see coming.

Just ban all Cars!

Sweetheart, GAP insurance is a dealer along with "any insurance company" selling it, a freaking scam. Put that overpriced GAP protection monthly premium payment in savings & use it for regular maintenance and repairs...and if you think simply keeping your vehicle clean and serviced keeps it from depreciating to a lower value...your living on Mars... So, you own a Bolt, I send my condolences 😎

Remeber years back how I debunked Felon Musk and all you hard core believers in the magic of EVs ? This happens when emotion plus lack of basic understanding in electricity, mechanic, economics...., rules !

I feel the focus of this presentation is misplaced. Evs experience significant loss of value from their new price. I think a lot of that is the result of the now 'common' knowledge about the short life of the battery. FUD has saterated the general publics knowledge pool. I would not fight this windfall, but embrace it. Don't even consider buying new at this time. Buy 2 or more years old and save from the reduced price on a car you know will perform as well as a new one. That's how to beat EV depreciation.

New vehicles are for simps. With all due respect 😁❤️😂

I wouldn't consider getting an EV until governments force the industry into standardizing battery packs so people can more easily get affordable known-good replacement modules/packs for 15-25 years into the future.

EV will plummet because of battery health overtime. its not like a diesel that will last forever

Don't buy one, lease if you must and then just walk away.

Not my problem, my V8 sports car will keep appreciating, YWNBAW

Love you Nicki❤ I don’t know if you are wearing lipstick but it’s reading as purple. To me it’s distracting.

A lot of scrambled statistics here. What we are currently seeing is the real value of an EV without all the initial hype, tax breaks and incentives. Now that adequate time has passed to see the real performance of EVs, we are learning that they are akin to an Iphone, in that they are always cooler than the previous model, initially overpriced and not serviceable. Basically, like the Iphone, EVs are disposable. Unlike an ICE vehicle, EVs batteries degrade into useless bags of highly toxic chemicals. No matter how well an EV has been maintained, the battery will still degrade over time and the cost to replace it is ridiculously expensive. Contrast that to an ICE vehicle that, properly maintained, can be fully serviceable for hundreds of thousands of miles and it it does need an engine or transmission replaced there are used, rebuilt, re-manufactured or even new ones still available to serve for another hundred thousand miles, at a much more reasonable cost. Add in, that if the vehicle does need to be scrapped, it is completely recyclable. In fact, scrapyards will pay you for an old ICE vehicle while I don't know what will become of the useless bags of toxic chemicals in EVs. I must add that if you look for used cars in America you will see the Ford Crown Victoria model, many with half a million miles on them still having resale value. They were produced from 1992 to 2012 and there are still a lot of them providing service as daily drivers, car services, police patrol cars and taxis. Try that with an EV!

The EV mining is horrible for the planet. The faster EV sales crash, the sooner EV go away, the better for mother nature.

An EV battery is like a gas tank that gets a hole that keeps getting bigger except the battery cost to much to fix

Hhahahahahahah what the FUCK is that thing?????