Oh no... car dealers are losing money. So sad.

It’s not a 30% discount if the car is marked up by 50% at the dealership 😂

Omg how horrifying….used car prices are going down…sounds great for the consumer….but we certainly don’t want that 😂😂😂😂

The 1% of rich people think of how to invest their money to increase their wealth during the recession. While 99% of struggling hard-luck people think of how to survive without food and daily necessities in the recession and the coming hyperinflation

They are not cheap now. They simply had wildly unrealistic MSRP.

Video: This is a big problem. Comments: It's good for customers. I see no problem.

Cars are priced high (media reports bad news); Car prices dropping (media reports bad news).

Here’s why I leased my EV6, my car payment on a good rate for a 2020 Niro was $429 a month and the value of the car was doing nothing but depreciating, the lease on the EV6 was $255 with no cash down and they take the hit on the depreciation. Saved almost $200 a month, charge at work for free and never have to do any maintenance, the savings are insane and the cars are stylish, fun to drive and are worry free.

How are these documentaries leave out the fact that prices dramatically dropped is due to the supply chain getting balanced after Covid?

40% of vehicle owners do not own garages. We need more charging stations at least 130 kw level 3’s

I don't see the problem. Market gets flooded by cheap EVs, second hand EV's become more price competetive to ICE vehicles, people buy more EVs and less ICE. Where is the problem exactly?

Leasing eliminates battery replacement worries

It's also the car dealerships fought for being greedy with markups. Car manufacturers are a fault for increased prices. Both sides are price gouging. Sucks for them consumers aren't buying.

Or, you could check and see that lower priced EVs were selling well in this time where people were having a harder and harder time saving for a home or even paying rent, but higher priced EVs weren't selling as well as automakers hoped. And neither have sales of higher priced non-EVs. Kia and Bolt EV sales have been good. Higher priced EV sales have had issues. That actually makes sense to me in this market... And the thought that used EV prices could be a bad thing? Used prices of any car doing down is a good thing for people buying. As long as you didn't buy your car as an investment, it doesn't really matter much if the used price goes down. And the fact that it means it will be more affordable for someone needing to buy used is a good thing... As for long term loyalty, I've have my Bolt for almost 7 years now. Just about 150k on it. Love this car. No plans on selling it in the near future, but when I do, whatever the new Bolt is at the time will be high on my list. Yes, I expect to not get much trade in value by then, but I'm fine with that. I've really enjoyed this car and it wasn't too expensive to buy in the first place.

Payment prices are still high imo, $300 - 500 in monthly price is expensive to me, add to the fact you don't own the car at the end of the day and you can only drive a certain amount of mileage.

Yeah $3500 due at signing for 36 months adds another $100/month to the payment.

I think EV leasing is a good way to try it out. I got my reliable corolla paid off and can get me anywhere I need. EV leasing allows me to try it out and also get a feel for it without feeling like I have to commit. I’m essentially wasting money but like I said, I don’t really need a new car to own. I do see leasing as a luxury rather than that financial decision.

I think this is necessary for the EV market to mature. It is bringing about a glut in used vehicles which brings in younger buyers. The lease prices also allow other people who typically cannot afford an EV to the market. The problem for EV profitability is volume and dedicated production. Tesla has the volume. Most of the legacy automakers do not.

We have a super duty we use to travel long distances. I am thinking of getting a couple of teslas as Dayly daily drivers. I am a fleet mechanic and the evs in the fleet have held up well.

Prices have to go down. This is a good thing. They know that once people try them, they are going to like them.

This is great for EV adoption. So many skeptical buyers will be able to try a lease, or an even cheaper post leased used EV.

Got a leased Mach E , and I am saving a lot with gas - around 1300/year in gas only, but add oil and maintenance and I’ll save around 1800/year. I know it’ll depreciate more than ICE, but my idea is to drive it until it dies for good. I was never a fan of EVs, but can’t complain about my deal now!

🎯 Key points for quick navigation: 00:01 *🚗 Steigende Anreize und Einfluss auf die EV-Preise* - Hohe Anreize und günstige Leasingangebote drücken die Preise für gebrauchte Elektrofahrzeuge (EVs). - Vermehrte Leasingangebote können langfristig die Preise und den Marktsegment schaden. - Unsicherheit über den zukünftigen Wiederverkaufswert der Fahrzeuge. 01:03 *💸 Detaillierte Analyse der Anreize für Elektrofahrzeuge* - Analysten sehen eine bedeutende Diskrepanz in den Anreizen zwischen Tesla und anderen traditionellen Automarken. - Höhere Anreize bei Massenmarkt-EVs im Vergleich zu Luxus-EVs. - Verschiedene Rabattstrategien und deren kurzfristige Wirkungen auf die Nachfrage. 02:23 *📉 Auswirkungen von Leasing auf die EV-Marktanteile und die Kundenbindung* - Leasing stellt einen erheblichen Anteil am Verkauf neuer Fahrzeuge dar, insbesondere bei EVs. - Hohe Leasingraten als Mittel zur Erhöhung der Kundenbindung und zur Bewältigung von Lagerbeständen. - Bedenken hinsichtlich der langfristigen Marktstabilität und des Wiederverkaufswerts. 03:19 *🚘 Leasingbedingungen und Verbraucherpräferenzen* - Leasing bietet günstigere Monatszahlungen und Flexibilität hinsichtlich der Vertragsbedingungen. - Bedingungen wie Kilometerbeschränkungen und mögliche Zusatzkosten bei Überschreitung. - Attraktivität von Leasingangeboten insbesondere für spezifische Käufergruppen, wie Geschäftsleute. 04:17 *🆕 Technologieenthusiasten und Luxussegment bevorzugen Leasing* - Neigung zur neuesten Technologie fördert die Beliebtheit von Leasing im Luxussegment. - Leasing als Strategie, um die Technologieadoption zu fördern und die Hemmschwelle für Erstkäufer zu senken. - Leasing ermöglicht es, Technologieaktualisierungen schneller mitzumachen, ohne hohe Anfangsinvestitionen. 05:09 *💡 Fiskalische Anreize und Marktreaktionen auf Leasingangebote* - Steuerliche Vorteile durch das Inflation Reduction Act bieten Umwege über Direktkäufe. - Beispiele spezifischer Leasingangebote und deren Einfluss auf die Verbraucherentscheidungen. - Verbindungen zwischen Leasingangeboten und Marktreaktionen auf EV-Preisgestaltung. 06:04 *🛠️ Langfristige Strategische Bedenken der Automobilhersteller* - Leasing als effektive, aber möglicherweise problematische Strategie für die Marktdurchdringung. - Potenzielle Probleme bei der Rückführung von Leasingfahrzeugen und deren Einfluss auf den Gebrauchtwagenmarkt. - Höhere Loyalitätsraten bei Leasingnehmern, aber Risiken bei der Wertminderung. 07:27 *🔮 Zukünftige Herausforderungen und Marktprognosen* - Zukünftige Verfügbarkeit von EVs und potenzielle Überflutung des Marktes mit Leasingrückläufern. - Langfristige wirtschaftliche Auswirkungen durch aggressive Leasingbedingungen. - Mögliche negative Rückwirkungen auf die Marktwerte und die Wahrnehmung von EVs. 08:50 *🏭 Unternehmensstrategien und Finanzielle Auswirkungen für traditionelle Autobauer* - Traditionelle Automobilhersteller wie GM und Ford nutzen EVs trotz Verlusten als strategisches Element. - Starke Finanzströme aus dem ICE-Segment stützen die Verluste im EV-Bereich. - Unterschiedliche finanzielle Auswirkungen und Anpassungen der Unternehmensstrategien angesichts der EV-Herausforderungen. 09:49 *📉 Langzeitbetrachtung der Finanzlogik hinter EV-Leasing* - Leasing wird oft wegen geringerer sofortiger Kosten bevorzugt, birgt aber langfristige finanzielle Nachteile. - Strategische Nutzung von Leasing zur Kundenbindung und zur schnellen Erneuerung des Fahrzeugbestands. - Warnungen von Finanzberatern über die langfristigen Kosten von Leasing im Vergleich zum Fahrzeugkauf. Made with HARPA AI

Who would've thought greedily overcharging customers would backfire?

Dealership Mark ups are still insane

Sounds like I should buy a used EV in 2-3 years. I’m betting there might be some good deals.

EV adoption is growing, the market ebbs and flows as usual. In my neighborhood, many neighbors that typically wouldn't be interested in EVs are now starting to pay attention - asking questions, showing interest, and making purchases. As Jim Farley described, it's ultimately about the experience of ownership. My family started with a PHEV (plug-in hybrid electric vehicle) and completely finished our transition away from ICE (internal combustion engine) this year. The performance, comfort, and convenience are the major factors for us.

CNBC got it all wrong again. The dealer will not lease to lose money. Cars of any type have been holding their value better than before. The dealer will get the car back in 3 years and be able to sell it for a nice price. Found a 2021 Honda Civic with +30k miles for $27k! This car market is still insane!

The losses car companies are making with EVs is due to the fact they slept on EV development. They could have started 15 years ago instead of 5. VW is struggling with software development because until late in the ID/MEB development, nobody thought about connecting all control units centrally and making them online updateable. It was just not feasible while buying controllers from a dozen of different suppliers.

I remember when Tesla model 3 used to retail for around $25,000 for based model! That’s when the Ev market was booming. These dealers saw that and start mark up all the prices on EV’s. I’m so happy these dealers starts to feel the pain we feel as a buyer feels.

Those buyers are smart. They know that these cars devaluate like crazy. Might as well get rid of them after 3-5 years. Car makers will have to rethink about how they will do business and earn moving forward, but the old way of selling cars with these EVs might not work.

Just supply not matching demand. As more EVs are produced, and last longer on the roads, the overall supply of EVs for sale will be higher, and reduce prices, overall a good trend for EV buyers. The intrinsic value of EVs being simpler and cheaper to produce will be passed to buyers as lower prices, just through a bit of convoluted process.

We were signing a lease on an Ioniq 5 and I almost walked away from the deal over the "I'm paying $350 a month and won't have anything to show for it in two years?" question. What clinched the deal was that Hyundai is/was offering free charging through Electrify America. So now my $200/month gasoline bill is shifted into my lease payment, net payment $150 a month. That was an easier pill to swallow and we can decide in two years if we want to stay in an EV. I think we will. The thing drives like a rocket.

EVs need to be affordable to everyone if this is going to work. Banning (ok bumping the import tax to 100% effectively banning them) Chinese imports that can sell as low as $11,000 in the US was a major mistake.

I am so happy this is happening ❤❤

Non-EVs are accumulating at dealerships too. Some EVs are still selling strongly.

When you return a leased EV they Add the depreciation cost of the batteries. You will get billed !!

It’s so crazy that the media keeps saying “look at how much money the manufacturer lost” the combustion engine factories and infrastructure have been built out and paid off for decades and they have to completely rebuild and retool their facilities to make EV’S and build the supply chain. Tesla almost went bankrupt numerous times and only achieved revenue after scaling over years. In the next decade the supply chain will become more built out and the cost of these companies will start to make revenue. Also the foreign manufacturers are super smart for leasing vehicles to get the tarps credit loophole. They will then be able to potentially double dip on the used tax credit if the cars values drop below $25k. You also will convert someone to your brand that would otherwise shop elsewhere. I would easily lease an Ioniq 5 if I was in the market for a vehicle right now.

Trying to charge my rented EV is a total nightmare! It’s a good car locally but a 170 mile road trip uses double the electric energy! I got stuck in a rural town after driving 77 miles to Victor, NY then an additional 81 miles to Wellsville, NY! I had started with a “full charge” of 342 miles and got down to 31 miles of charge before I even reached my destination. The only charger I found before I would run out of miles was 20 miles away and I got there with 6 miles of charge. When I plugged in it was TEN HOURS and FIFTY MINUTES to full charge! Yes you read that right! It was a slow charger (only one available) at the University of Rochester Hospital in Hornell, NY. Needless to say that car stayed there all night long! Around where I live most of the chargers are those slow chargers. You go to EV chargers shown on the EV map and it’s either broken or doesn’t exist, or it’s one of those slow chargers! Last week I waited at my local AAA for three hours to use the one and only fast charger that someone else was charging their car on. They had left their car to charge and didn’t come back for three hours. I didn’t have enough miles to drive across town or to another town to charge! I then had to sit to charge my car for an hour and fifty minutes, that’s what they call a fast charger! I cannot wait until my personal car is repaired from a hit and run! I will never rent nor buy an EV, I take frequent long road trips and our infrastructure across this country is not ready to handle travelers in EV! I recommend anyone wanting to buy an EV rent one and take a few road trips of at least 2 hours and see for yourself.

Would leasing a good option for someone not qualified for $7,500 tax rebate? If income is over $150K or $300K, then leasing become attractive because the leasing can have rebate regardless of income level.

I think we’re forgetting that the manufacturers captive finance arms are locking lessors in at historically high money factors and banking that profit for the whole term even after rates are eventually cut. They will have built this profit into their models to offset some of the discount. Not to mention a $7500 tax credit is worth about $225 of monthly payment which is a huge driver of the low lease payment! Big luxury sedans like the 7 series and A8 have successfully leased at sub 50% residuals for a couple decades now.

Didn't expect to see Kyle making a cameo appearance.

Leasing is a brand-value killer, just look at the used prices of European cars, a huge ratio of them are leased instead of bought. There are other variable which play into that value loss but leasing is a big one.

They mention demand for EVs stalling but not the lack of investment in our EV infrastructure. You still see WAY more gas stations than you do places to charge and you can’t have mass adoption without fixing this too.

Car affordability crisis is officially over. New EV lease and used EV are dirt cheap right now

Bought a 2023 q5 plug in hybrid and didn’t get the tax credit. I spent 2 hrs on the phone with the IRS and they couldn’t tell me why I was rejected. Needless to say, I’ll never buy into another government sponsored program.

EV prices are down because Tesla used dynamic pricing and quickly dropped their prices to move sales…..Tesla is going to be the winner here. Traditional automakers are playing catch-up.

The one thing that CNBC forgot to mention, is that Tesla is the only company in the world who makes a profit on EVs. Hence the price cuts will hit other manufacturers wayy harder than Tesla

I bought my 2023 Ioniq 5 for a pretty good price and my wife leased her 2024 Ioniq 6 at a very low monthly payment. After a year of ownership I believe the Ioniq 5 is the best car I have ever owned. I love it! I plan on keeping it till the wheels fall off. My wife likes the latest and greatest so she’s happy with her car but also excited about how EV technology will evolve once her lease is up. One thing is sure, we will never go back to ICE. Once the truth gets out about how great EVs really are, more and more people will make the switch.

I am in a very desirable market, and in the last half an hour I saw 10 lease deals on TV for $200. if you go to the lots of people who make and sell EV’s they don’t even have room to park them anymore. There is a huge backlog of cars coming and nobody wants them. Add that to the fact that China is trying to bring 1 million electric cars already made and sitting in the field. And they will do anything to sell them here, even if they’re 10 thousand dollars, and the pressure on electric manufactures is immense. Prices are going off the cliff and that will take regular cars with them.

Rental fleets notorious for dumping large amount common vehicles on the market really affecting all car values. Remember cars are depreciating liabilities not assets. Robotaxi could be an asset if you owned it making money for you while your sletpimgb

Biggest reason why they push people to lease is because they all use Chinese batteries to get that loop hole. Tesla gets the 7,500 through all options, cash/loan/lease

Tesla cars leased only amount to 3% of total sales. This video implies Tesla has a problem. In fact, the opposite is true for Tesla.

I have one kislux bag I got in 2019, it's the LV white catogram speedy. It's counter quality and it has a nice honey patina now, so the leather is real. I think whatever makes you happy go for it. I've seen LV with plastic leather and blood red glaze...

USA forgot to build battery factories and charging stations. Teslas msrp helps pay for its charging station. Competition waits for public or private

If you are putting thousands of dollars down on a lease, all you are doing is prepaying your monthly payment and if that car gets wrecked, that money is gone.

I think it is critical to include the average cost of repairs/maintenance fees in those estimates comparing the cost of leasing to buying.

1:33 a good editor would have noticed dad giving the ole bag scratch right there hahahahaa

Talked to the finance guy at a really big Ford dealership he said he is lucky if he sells one EV a month

Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires

Won't this be beneficial for the consumer, who might find the value of his leased vehicle lower at the end of his term and can buy it making it cheaper in the long run ?? Can someone explain

CNBC didn't even mention what I think are the more important aspects why EVs are not selling as much - they are more expensive than ICE and not everyone owns a garage where they can charge the EV overnight. Plus the interest rates right now (Aug 2024) is super high, as much as 9.25%.

The lessee isn't paying for the depreciation, they only pay the lease amount. The dealership is stuck with the loss from depreciation. For example, if a lessee pays 30% of the total finance to own amount on their 3-year lease contract, they've effectively paid off 30% the value-when-new of the car. The car lender on the other hand continues to own a vehicle that has lost up to 50% of its value-when-new. The dealer can only resell it for the remaining 50% as a 3-year old used car. So the lessee pays 30%, the used car buyer pays 50% and the dealership/manufacturer eats the 20% difference in lease term incurred depreciation that no end user pays for. Therefore customers should lease if they don't want to drive a car older than 3 years with maintenance costs, or buy a used already depreciated car and accept the maintenance bills until they no longer make financial sense.

Plug-in Hybrid is the way for me. At least right now.

Love my EV lease

95 percent of EVs sold are still on the road today. The other 5 percent made it home.

I drive a 2005 GMC EVONY that's a V8 & has "OVER 328 THOUSAND MILES" on it & it's paid off. NO CAR/TRUCK PAYMENT FOR ME, BABY! I will drive it till it won't go in 4x4 mode NO MORE. Then I'll have the dang transmission rebuilt before I go into debt again!! Same with my 2007 Chevy Silverado 4x4!! I refuse to go back into debt on another car/truck. 😊

No more oil filters in land fills every 5000 miles. I charge at home with solar and save $500/month on gas and electricity. A gas car averages 24 mpg vs EV 100 mpg e

So what EVs are good for leases

And here in Canada we are getting hosed, most consumers still pay dealership markups on EVs.

The last time I checked the industry websites, U.S. dealers have 3.166 million unsold new cars on their lots, or in transit to their dealerships. So, all car sales have slowed.

EV sales growth crushes internal combustion engine vehicle (ICEV) sales trends. Comparing 2023 and 2022 totals, EVs saw 47% growth while ICEVs (gas and diesel vehicles) saw 10% growth. Comparing 2023 and 2021 totals, EVs saw 142% growth while ICEVs saw a 3% drop in sales. EV sales were up 356% in 2023 compared to 2020, while ICEV sales were up just slightly, 1%.

I think you may be missing an important part of this equation. For EV's to be really practical, you need to charge at home - what about the cost of that equipment and the cost of installation?

It’s NOT a long term rental at Honda. You always have the option to buy it out for the residual.

Tesla working towards No Service needed just tires. Profits could be made up for service by income coming off its supercharging network with many stations supplemented with solar and megabattery packs keeping costs/kwh charger lower than competitors. Plus charging still available certain areas if brownouts or blackouts Tesla adding megapacks to GRID to store wind/solar for night use.

"Large portion, are sales people, people making business calls..." the common trope of sales people being the most susceptible to sales tactics follows here. Leasing is financial cancer.

Rent everything don’t have equity in anything 😊. If you lease for 3 years that money goes into the fire. if you bought it you would own the car in 2 more years.

Blazer EV & Equinox EV's (small in person) are piling up at dealerships. These leases tend to have a several thousand dollar down payments.

Drivers are waiting for models with the NACS J3400 charge port before they buy. So the smart thing to do is lease the CCS version now and turn it in at the end.

leasing a car is the dumbest thing anyone can do

When demand is low prices drop.

Corporations have been wanting us to migrate towards a subscription model. The deteriorating return on car leases is arguably them getting exactly what they asked for.

I got a ridiculous set of lease incentives on my 2024 BMW i4 M50. Made it a much easier buy for a $76k car.

Leasing ! How to immediately have what you cannot afford and probably do not need. Of course, it gets much worse later when you are still renting, having paid a fortune yet owning nothing but the obligation to continue paying the rental...

I'm the GSM of a branded car dealership. The reason EVs lease so well is because manufacturers are subsidizing the hell out of them, as is the government. Residual values are terrible, and whenever we do equity calls, we offer customers that we pay their remaining payments and they just return the lease. We dont want those lot rotters around. Give it back to the manufacturer and let them lose their asses at auction.

Again, the future is autonomous robotaxi’s, ride sharing, and Uber. Uber in negotiations with Tesla 2 seater robotaxi’s. RIMAC just announced its 2 seater autonomous robotaxi Ev

If the whole premise in this report is that EVs coming off leases will tank the secondary market and saddle OEMs with excess used inventory, then why does Tesla disallow buyouts at the end of their lease agreements?

Inside China Business; Detroit auto engineers tear down BYD's Seagull

Nobody wants to play hot potato with that drive battery. I know I don't. I just leased a Mitsubishi Outlander PHEV, have had it for about 7 months now. No I don't want to buy it, I'm waiting for the used market to calm down so I can get a gently used Toyota gas engine car and drive it for 20 years. When I took this lease the best used cars were north of $15k. Anything under $15k was a rust bucket from New England.

Legacy OEM are struggling to sell their EVs as very few of them have created a compelling EV. Most lag far behind Tesla and Rivian for efficiency, functionality, and value.

Should start to incentivize new battery purchases for used EVs. Hopefully form factor of the battery pack stay consistant and can be swapped for the same new mileage.

Well, it was that or start giving them away free with an annual subscription to Amazon Prime.

I've lived in Cali for 5 years and I still don't see a need for EVs right now. It's bad enough that PG&E is the worst utility company I've ever seen, but I'm not adding to my bill by charging a car to it💯💯💯

Why does it say 21.6% and 28.9% leases for Tesla MY and M3 in Q124, but according to Tesla’s Q1 delivery report only 2% were subject to lease accounting???

Low resale has nothing to do with probable battery replacement at $60k, a relatively small accident totals out the vehicle because of the battery, possibly catch your house on fire because the previous owner used super chargers to often creating shorts internally in the battery and so many other reasons.

EVs are throw away cars

Most large corporations absolutely don't care about long term. They ONLY care about their bonuses for the current quarter. It's absurd how they will always take short term gain knowing it's a long term net pain...

I did a road trip to Las Vegas and I got there with a quarter tank to spare. An EV would take an additional 1-2hours of your trip. Its cheap but insurance is not.

Why are EV prices so low? Because there is no growth anymore. People that wanted EVs, already bought them. People that don't, won't, and it would be hard to convince them to switch over. And so, inventory just keeps growing.

Buying a used EV is the best bargain around. They are essentially forever cars.