EV Depreciation 2023

Cyrus

https://www.boards.ie/discussion/comment/121862330#Comment_121862330

I was referring cost to change to a new version of the same car , same way the Tesla price cuts are less of an issue if you are trading an old model 3 to a new one .

CMOTDibbler

https://www.boards.ie/discussion/comment/121862632#Comment_121862632

It's still not depreciation though.

Cyrus

https://www.boards.ie/discussion/comment/121862954#Comment_121862954

not in the accounting definition no, but when it comes to changing your car it is.

The reason that golf looks like it has depreciated so little is because its used value is compared against the new RRP which is now a lot higher. Imagine going in to trade up 3 years, good news Dibbler, your golf has only lost 10% of its value in 3 years. Magic you say ill have another, great that will be 16k Dibbler, but but you said it only lost 10% of its value.

That was of its old value Dibbler its a lot more expensive now.

Buddy Bubs

My car has officially depreciated 18k from 42 to 24

But my cost to change was 12 because list price for new one is 36k.

The list price dropping has an effect on the depreciation being high.

12 would be the relevant decision making figure to keep or change (I kept) while 18 would be the cost in the company books

CMOTDibbler

https://www.boards.ie/discussion/comment/121863091#Comment_121863091

So if you sell your car and buy an e-scooter, your car has officially appreciated?

SteelyDanJalapeno

If I don't sell my car, it doesn't depreciate?

beachhead

Exactly,haha Will have to go and price my car now

kanuseeme

LoL

djan

A lot of "man maths" going on here. Depreciation is completely separate to cost to change. The whole debate is only happening due to a relatively uncommon phenomenon in the car world as some new cars are having price cuts. For example a BMW 520i new now costs at least 20k more than a couple of years ago so by that logic a 5 year old car could potentially depreciate by 100% if going by the cost to change argument.

Cyrus

Its not that difficult despite a few on here pretending to be less intelligent than they are.

A car is a bit like a house, most people have one because they need it, if they sell the one they have they will need to replace it. Most people dont keep a personal balance sheet and book depreciation as a cost to their p&l every month as its not a cash cost. Therefore depreciation, as it pertains to a car, becomes a tangible thing when you have a crystallising event which is either selling or trading that car.

Back to the example of the golf, its depreciation against the cost paid for it looks very low, however, if you want a brand new one, of the very same thing, its very little use to you when the price of the new one has increased significantly, your cost to change is very high despite your 'low' depreciation. If you want to trade it and get into a much cheaper car maybe its a different story but most people dont do that.

So people can talk about depreciation all they want but until you crystallise it, its an abstract concept otherwise.

Cyrus

https://www.boards.ie/discussion/comment/121864265#Comment_121864265

another stellar contribution!

Cyrus

https://www.boards.ie/discussion/comment/121864040#Comment_121864040

bit silly dribbler isnt it, i presume you can understand the point i was making.

alan partridge aha

Had this discussion with a Skoda salesman last year. I asked how come the Golf had increased so much in price from when the Mk 8 was introduced.

He said you're not comparing like for like as the current price (2023) of the Golf was of a far higher spec than when the mk 8 originally came out.

Alot to do with keeping 5 stars on the ncap with lane assist etc.

Buddy Bubs

https://www.boards.ie/discussion/comment/121865200#Comment_121865200

They're not as much a spec improvement as they'll have you know!

alan partridge aha

https://www.boards.ie/discussion/comment/121865223#Comment_121865223

Won't argue with you, just relaying what the salesman said. We had been looking at a Golf but couldn't justify paying 30k plus for a petrol Golf Life.

sk8board

https://www.boards.ie/discussion/comment/121865223#Comment_121865223

Manual petrol golfs have always had strong residuals.

since 2014, we’ve had 1 mk7, 2 mk7.5 and now have a mk8 for a few years.

Unless you want an R or Gti, the mk8 manual petrol is a better car in almost every way, especially the ride and refinement.

We’ve had very strong trade in offers from VW on all the cars above, (8-9,000km annually) making the change an easy decision.

beachhead

Golfs have always been overpriced.VW in general.Tin cans coated with plastic

CMOTDibbler

https://www.boards.ie/discussion/comment/121864704#Comment_121864704

But you clearly can't see the point I'm making Miley.

CMOTDibbler

https://www.boards.ie/discussion/comment/121864695#Comment_121864695

So to take your house analogy, you buy a house in 2000 for €200k. You sell it this year for €500k and buy another house in a more expensive neighbourhood for €600k. What's your "depreciation"?

The 'crystallizing' event it when it's sold. What you do with the money is irrelevant. You're taking depreciation, inflation/deflation, trading up or down and lumping them all together in one box and calling it depreciation. If you like to simplify things go for it, but at least accept that there are other factors at play than just depreciation.

JoeA3

https://www.boards.ie/discussion/comment/121865200#Comment_121865200

He’s talking through his bloody hat. No surprise. A car salesman who isn’t a complete spoofer is a rare thing.

The specs on MK8 Golf’s have not changed significantly in any shape or form since launch.

alan partridge aha

https://www.boards.ie/discussion/comment/121872271#Comment_121872271

Well to be fair the dropped the "Golf" (base spec) and "Comfort" trim not too long after launch. And the starting spec then became Life.

JoeA3

https://www.boards.ie/discussion/comment/121872308#Comment_121872308

Well it’s not like for like then.

alan partridge aha

https://www.boards.ie/discussion/comment/121872382#Comment_121872382

Ya and thats what the salesman was saying, the big price increase was that they dropped base specs Golfs.

By doing this they could still keep their Ncap 5 star rating.

JoeA3

https://www.boards.ie/discussion/comment/121873144#Comment_121873144

Sorry but I still think he was talking nonsense. New car prices in general have increased significantly in the last couple of years and VW dropping base spec models has absolutely zero to do with NCAP ratings! A base spec Golf has exactly the same number of airbags and safety systems as a 90k Golf R. That just screams of a brown shoes salesman spouting rubbish.

I have a MK8 GTI, bought new in 2021 for around 55k. The same new car today, identical spec, is 70k+. NCAP ratings are not a factor here.

MojoMaker

Wasn't *that* long ago that Golf Rs could be bought new for 46K.

Silly stuff now.

Cyrus

https://www.boards.ie/discussion/comment/121872131#Comment_121872131

I’m not , I’m pointing out that looking at depreciation as an abstract concept makes no sense when you’re talking about cars, I’m simplifying it for the audience .

The house thing was just to make the point about something most people need , unlike cars they aren’t something you expect to decrease in value every year.

gary29428

We have a 2yr old e2008 GT...60k trouble free miles with a FSH.

Was thinking of changing so asked for a trade-in value at Windsor motors, was told 16k. We paid 39,600 just over 2yrs ago. So it's lost over 23,000...

Are other EV owners seeing similar on trade-in or is it just Peugeot's...

Buddy Bubs

https://www.boards.ie/discussion/2058340377/ev-trade-in-value

Is that 60k miles or KMs? High for a 2 year old either way but in miles it's very high.

There's price drops in the market for new cars and a lot of uncertainty about future prices so garages are low balling, at least until it settles down

An e2008 is probably will not be a 40k car new anymore, a similar experience to owners of cars that have dropped. So base your expectations on your value on a lower figure to buy a new one. Hard to swallow but that's life.

I was offered a low figure for my own EV but I wasn't too pushed about changing so I kept it

Not a good time to be thinking about trading relatively new EVs unfortunately, but market will settle eventually to its long term level.

Unless you have to change then just hold on to it.

n.d.os

Currently, it’s not an ideal time to switch your EV. If you initially purchased it through a Personal Contract Plan, I recommend considering refinancing until the market stabilizes. If you’re contemplating selling it to a dealer and going elsewhere for your new car, be prepared for lowball offers, especially given the current EV climate. While I understand the urge to get a new car, rushing into a purchase can lead to regret—I speak from experience. Last year, my PCP ended, and I impulsively bought a new car without a clear preference, only to sell it a month later due to dissatisfaction. My advice: be patient, as the recent downturn in the Irish EV market is a problem at the moment and it might take some time to work itself out.

slave1

Tesla disrupted the market with it's Model Y pricing structure about a year+ ago, this is the fallout, it will not correct if Tesla continue to sell their cars for less cost than competitors