EV Depreciation 2023

n.d.os

https://www.boards.ie/discussion/comment/121912381#Comment_121912381

Those who prefer PCPs are often perceived as financially capable, while skeptics argue that PCP participants struggle to afford their vehicles. Interestingly, I frequently encounter this debate among traditionalists—ironically, the same individuals who secure high APR car loans from credit unions to purchase depreciating cars outright over a 5-year-period.

There’s a common misconception that not owning the car outright is a disadvantage. In reality, PCPs cater to those who prioritize convenience. On the other hand, some people take out loans with high Annual Percentage Rates from credit unions to pay off a car fully over five years. While this approach results in car ownership, it’s essential to consider that the vehicle will age during that time, and you’ll have invested a significant amount of money in a five-year-old car.

After years of being on PCP, I’m now contemplating refinancing one of our cars at the end of its three-year PCP term. Given the current EV landscape, I fail to discern any advantages in starting another PCP. With each three-year cycle, I find myself shelling out more funds to remain in a vehicle of comparable size. Eventually, you reach a tipping point where the status quo becomes untenable.

ToweringPerformance

https://www.boards.ie/discussion/comment/121911803#Comment_121911803

Fools and their money.

sk8board

I’ve used 0% PCPs for about 10 years and 4 cars (142, 172, 201, 211). All cars were in the €28-32k ish range - similar balloon and monthly in all cases, so the only decision was the cost to change. our local garage would usually call with stock offers, knowing I’d give them an answer if the numbers made sense, they’d drive the car to the house, sign, and take the old one away.

the cost to change the last 3 cars was €2.5k, €2k and €0k (Covid car). We could have bought the cars outright, but we invest actively, so the opportunity cost was decent in our case.

we have no tyre costs, maybe 1 minor service, and a car that’s always in full warranty.

the downside: the balloon. It’s really simple. the last car you PCP is the one with the most pain.

we’re out of pcp again next month, and will gladly pay off the balloon unless there’s another deal offered that doesn’t affect the monthly or balloon.

TLDR: take the 0% pcp on cheaper cars with palatable monthlies and low balloons

alan partridge aha

It seem that the laggards may not be after all.

https://www.telegraph.co.uk/business/2024/04/10/volkswagen-electric-car-sales-europe-turns-back-petrol/

sk8board

Spoke to someone this morning who just traded an original Audi eTron after 2 years for exactly €50k depreciation. Nothing unusual about that anymore and it wouldn’t happen today I don’t believe. Another case of Covid early adopter premium.

John arse

I wonder do the people who have long range EVs unnecessarily realise that they are lugging around at least 200kg(30ish stone) more than a standard range car for no good reason?

Buddy Bubs

https://www.boards.ie/discussion/comment/122042679#Comment_122042679

That's about right. My dad was offered 40k for his 55 sport model that cost 82 or 83 I think. That was after about 20 months

sk8board

https://www.boards.ie/discussion/comment/122042794#Comment_122042794

imagine buying a 5-seater family car and being told when signing that it will cost you €2k per month after tax, every month, just to have it on the driveway. It would’ve been a v low mileage city car too.

Gumbo

https://www.boards.ie/discussion/comment/122042924#Comment_122042924

Completely normal for that price bracket. Similar drops for 5/7 series and BMW PHEV’s when trading in. Obviously figures are % related to the original cost.

I seen a brand new BMW M2 the other today. A £73k stg car when advertised not 3 months ago. It’s now £50k stg. Currently my favourite car from any brand at the moment.

Cyrus

https://www.boards.ie/discussion/comment/122042679#Comment_122042679

the q8 etron 55 (mild face lift of the original with a bigger battery) retails at 110k it would most likely happen if you buy one at that (or most cars at 110k) so I don't think it's a covid early adopter premium at all.

Cyrus

https://www.boards.ie/discussion/comment/122042924#Comment_122042924

a family 5 seater that cost somewhere between 85 and 95k it's not a Toyota corolla

Buddy Bubs

https://www.boards.ie/discussion/comment/122042924#Comment_122042924

He sold it to me though, no way was he giving it back for 40k. Was just looking really he ended up not liking it at all. Too much tech for a 70 year old ex tradesman used to driving work vehicles.

fits

‘TLDR: take the 0% pcp on cheaper cars with palatable monthlies and low balloons’

don’t agree. High balloons for the win. Protects you from depreciation. I don’t want my equity tied up in a car. Treat it like car rental after that.