😱My Shocking Electric Vehicle Depreciation In Just one year!!
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- čas přidán 19. 06. 2024
- Join me as I walk you through how much my EV has depreciated in just one year of ownership. The results shocked me!
#electricvehicle #rivian #tesla #depreciation #electriccar #usedcars - Auta a dopravní prostředky
According to Kelly Blue Book based on my VIN, my trade in value is $64,191 to $69,385 and private party is $67,558 - $73,028 which is why I went with $70k which is more than my bottom line with the $7500 tax credit included. I could have added state incentive which will make it even lower. Dealerships will be factoring those tax credits in as well. In any case, even on the lowest end, that is less than $5K in depreciation after one year of ownership
In a similar situation. My T was purchased in the fall of 2022 with Ocean Coat and Powered Tonneau Cover (yep, still works). With the $7,500 TC I'm still good. However, I don't concern myself much with depreciation. First, I can't control it. Second, you only realize depreciation when you sell. In the meantime, I'm going to enjoy the best and fastest vehicle I've ever owned.
Thanks for sharing!
The folks who really did take it on the chin, though, are the people who bought Teslas before the dramatic price cuts (20%-30%) on the new models of those vehicles.
I just watched a video of a guy who bought a 224,000 mile 2013 Model S for $17,000. The interior and exterior were in great shape and you could tell the guy had taken care of it. The battery's degraded significantly, but not really bad. I know you can replace a Model Y battery for $9000 and CATL is saying the costs of their batteries will fall by 50% by the end of the year. Not just the price fall in minerals, but scale as sell. But let's just say you pay $9000 to replace the battery on this car. You've got a really nice Tesla in good shape for $26,000! Soon the market will figure this out and used price will start to rise again, at least somewhat. I might be interested, but I have 2 perfect Model Ys that have had zero problems and that I'll keep for at least 5 more years, probably longer. I really don't care about depreciation.
On the average, gas vehicles depreciate around 15% the minute you drive it off the car lot.
Thanks, Duke, for the info.
Any time!
Good dose of reality about Rivians Duke. And as you mentioned, ICE vehicles depreciate when they're driven off the dealers lot as well. Too much negative press around EVs right now.
The depreciation is about average for vehicles that have a current market demand. My 2023 Bronco Wildtrak has the same percentage depreciation as your Rivian.
Thanks for sharing!
Great video. I bought my 2022 Tesla Model Y Long Range in Sept of 2022 for $70,100 cash out of pocket at time of sale (this does include the Full Self Driving software which was an additional $10,000), so without the software, my cost of the vehicle alone was $60,100. Today, it is in mint condition with 18,800 miles and I could sell it today for maybe $34,000. I am getting trade-in values of $31,200 from Tesla and $32,400 from Carvana. That's pretty much a 50% depreciation in value in a year and a half. Ouch!
That is because Tesla did all of those massive price cuts. Prior to that, Tesla's held their value because of OTA updates among other things.
@@thedukeofmanville you flat out cannot ignore the inflation that happened in the auto industry from 2020-2022. Prices for new and used went sky high. Completely out of control. For instance, out of curiosity I got a quote from Carmax to buy my 2010 Hyundai Tucson in 2021. They offered me $8k. For an 11 year old car!!! Today they would offer me half that. Did my vehicle depreciate or did the auto market as a whole experience deflationary effects? Same applies to anybody that bought a new/used car during this time. You bought at the worst possible time you could have. (perhaps you had no choice). regardless, its an ugly fact.
People have got to stop comparing the price of their car today with the price during a pretty rare industry wide event.
Thanks for the info!
You're welcome!
All vehicles are down drastically, yours seems to be pretty well.
this is scary. the MacMaster bought his porsche Cayenne 2 years ago £120,000 now the dealership is offering around £40,000
What would then numbers run of you bought ot after price increase.
Just because they're listed for that price doesn't mean it will sell for that much. Some of these dealers are sitting on these higher priced thing for nearly a year.
Rivian doesn't have dealers, and I doubt very highly that any have been sitting for a year for a host of reasons.
As someone mentioned already, this is not how you get the ‘trade-in’ value on your vehicle. I did a quick ‘Kelley Blue Book’ estimate on your vehicle, with the information you provided here. The ‘trade in’ value at a dealership was between $58,793-$63,987 with a median of $61,445, and ‘private party’ resale value between $61,795-67,265 with a median of $64,588. However, even with these numbers, I don’t see a problem with depreciation in regards to your vehicle. It will depreciate at the rate that most vehicles do anyway, that’s what vehicles do…they depreciate.
According to Kelly Blue Book based on my VIN, my trade in value is $64,191 to $69,385 and private party is $67,558 - $73,028 which is why I went with $70k which is more than my bottom line with the $7500 tax credit. I could have added state incentive which will make it even lower. Dealerships will be factoring those tax credits in as well.
You are showing asking price, not private sale price. Wonder how much less?
Private Sale is $66,994- $72,400 which is why I went with $70k, but even on the low end that is still only $3K in depreciation after a year.
I also didn't get the state of Illinois tax rebate due to using my full middle name instead of my middle initial. Which is stupid and sucks. But that's Illinois for you.
The car is so good, I don't care if it loses 75% on day 1. I'm keeping it.
Already have a Model Y, and adding a Model X in March
Be the guy buying it for 25% on day 2.
@@leonchen89
I would, but Model X's are hard to come by if you want a particular configuration.
Luckily I am getting the $7500 rebate though, and transferring my FSD from the Y to the X.
When I eventually trade the Y, which I got with 6600 miles on it, I'll see what my options are
This is just a beginning of the cost it’s not the only cost to own one EV. The cost of time to charge, the cost to replay parts and batteries, the cost of be freezing ice and snow to dead waiting in long miles traffic for hours running heat….. sure it only good for rich people using them as a toy!
Rich people with too much spare time are a rare breed of rich.
Any car can be considered a toy by someone.
You should go to a couple dealerships and get a trade-in cost. That will be the data you need.
This was just an exercise to show how tax rebates impact resale value. I'm keeping my Rivian for at least 8 years.
A different EV story: I bought a 2013 Nissan Leaf used in 2015 for $10,000. The original price was about $27,000. A huge depreciation for the original owner in 2 years - $8,500 per year. I still use the Nissan Leaf. Similar Nissan Leaf prices on CraigsList in Seattle are about $3,000 now - $775 per year.
You forgot to subtract the $7500 tax credit and state rebates. That puts that Leaf at $19,500 or lower.
@@thedukeofmanville I do not believe there were any federal tax rebates in 2013.
@@alsjogren7890 EV tax credits have been in place since 2007 during the Bush administration. I got a $7500 tax credit in 2011 with my Chevy Volt. So I'm 100% positive there was a $7500 tax credit in 2013.
If you are worried about depreciation you cannot own that vehicle. A vehicle is not an asset. It does not create any value but for the service it provides you.
My 94 toyota supra turbo 6 spd. Doubled in value over 10yrs. My 72 corvette was bought for 3k in 1984 today its worth 20k. My 97 sc300 manual was bought for 3.5k in 2014 today its worth 12k. So what was your point again?
Unless your cars are clean low mileage cars they are only worth what someone is willing to pay for them.
I have a 2001 Jeep xj. A clean copy can easily go for $20,000. That does not mean every 2001 Jeep Cherokee is worth 20k. Even so the new car truck was 23k.
Man a 72 vet is not worth $4 to 99.9 percent of the population.
Elon with his snake oil called Tesla cars an investment! They’re literally some of the most value destroying cars from that comment to now.
I wouldn’t call cars investments unlike the fraud Elon. But other cars rarely see such value destruction in such a short period of time.
@@fatboy19831your opinion takes nothing from the original post being incorrect…and as for the 72’ Vette in question your hyperbolic statement can simply be answered by saying he is obviously tasked with advertising in time to catch that 0.1 percent of willing buyers in time to sell as he would like…
Point is these asshats and their EV’s have been duped by every conceivable metric including resale value and aftermarket interest. Which should be considered as part of ones due diligence when purchasing a car.
The original comment of “affordability” and “not being an asset” is simply a simple minded person attempting to sound “smart” and “frugal” to stupid and cheap folks…uneducated folks try and fail at these silly tricks all the time…
All circumstances are indeed not created equal, if you can’t determine you shouldn’t invest. For those types it is a simple purchase…that’s all they can manage for themselves…🤷🏾♂️
Not my problem and thank god for idiots and Capitalists…they make the world go round!
Keep buying cheap shit and being proud of it! Congrats!
BTW:
Gotta love those who can’t handle response to their own public comment…coward and cheap I see…niiiiiice!
That's right Duke the numbers don't lie you are either the same or better off with that Rivian one year later.
The way to beat car depreciation is to..... wait for it........ HOLD ON TO YOUR VEHICLE FOR A LONGER PERIOD OF TIME!! Sorry for the caps, I like to release stress through capitalization.
Just hold on to your vehicle, get the most out of it, and then get rid of it. Save your money. I've had an EV for over 100000 miles and I plan for another 100000. All cars will eventually become unusable, regardless of how fast they depreciate. It's value is in how you use it.
I agree! I usually keep my EVs for over 6 years. Thanks for commenting!
Going to put dent in Tesla upgrades! It certainly is for me.
lol, they’re ASKING 70k for those used robins, they’ll GET 58k. Put down the pipe, haha
you cannot use sale prices, you need to look at completed listings, just because someone is asking $70k does not mean that is what they will get.
Does the same apply to dealer markups? Or do we change the narrative just because its electric?
75 k is crazy 😱😱😱
A Ford Raptor R cost $140K and a Ram TRX cost $115K...
Just wait until you have to replace your battery. Batteries don’t last forever,
Nothing last forever.
Elon has caused this because he keeps lowering the price and giving extra rebates. Just yesterday I saw it's an extra $1000 off just because it's winter. Leasing is the way to go with EV's. You pay less, don't have to worry about resale, everything is under warranty on new technology, and best of all u don't have to worry about battery degradation.
Your vehicle didn’t depreciate, you overpaid. Now the mark up was built into the sticker price, but you couldn’t see it. The big electric vehicle manufacturer business model works well for them at high demand low production. But when demand drops well below production they have to slash prices dramatically and quickly to not go out of business. Traditional manufacturers sell their vehicles to dealerships. So the manufacturers get paid. The dealership only gets money when they sell the vehicle.
If I over paid then why is the low end trade in value just $5k less than I paid for the vehicle after the tax rebate? That's less than 8% depreciation after 1 year.
That's not how you value a vehicle. Those are dealers your not a dealer. Also a dealer can place any price they want on a vehicle doesn't mean someone is gonna walk in and pay that. Find sold prices that's how you value something. What your doing is what a lot of people do they look at active listings not sold. Sold is always a different story. Look up trade in value because that's what a dealer will pay you. I own a 22 Durango RT Plus it was about 68k out the door. I know what they are listed for used and I know what trade in value is. They ain't the same they never are. I payed cash no financing charges that's also something to factor in money isn't free.
So, you value a vehicle by picking the lowest possible outcome? Dealer trades are the absolute worst😂
@@thedukeofmanville If everyone could sell their vehicles at dealer prices trade in value wouldn't exit. Plus dealers have higher prices because of overhead and a lot of other reasons. People don't buy from a private party to pay dealer markup let's get real would you do that.
Why do you want to sell your Tesla and buy the same car again? Use your Tesla for 5-6 years. As More Teslas hit the road lower will be the value.
I don't own a Tesla, I own a Rivian, and I have no plans on selling it. Thanks for commenting.
@@thedukeofmanville the comment was for people who are talking about Model Y value.
So you’re saying gas powered cars have better depreciation values. They don’t. 🤡👎🏿
I guess you didn't watch the video before you commented.
You do make some good points in other videos but here you completely lost the plot. As others said, what the dealerships are selling these used car for is absolutely not what you will get it for...this was just silly to watch.
So, you are saying you can't privately sell your car close to what a car dealership can🤔 I understand that this doesn't fit the outcome you were hoping for.
@@thedukeofmanville
Nope...I didn't say that. Private sales are always a different ballgame, some will be willing to pay others those prices purely out of spite to the dealerships but it generally comes with more risk, you don't get a warranty, private sales generally don't have payment plans for the buyers (yes it can of course be done but usually only happens when the buyer and seller know and trust eachother... or you can pay a private broker but then your just adding your own middle man)
At any rate, playing the
"so what you're saying is ( total misrepresentation of what was said)" game.
Is dishonest at best and well you aint winning any arguments with that nonsense.
@@thedukeofmanville
Oh and you do realize if you are making an argument that you expect to sell your used car for dealership prices then you might want to take back your criticisms of "stealerships" "price gouging"
@@gizmogremlin1872 According to my VIN, even on the low end of a trade-in it is just $5k less than I paid for it, and on the high end, it is what I paid for it after factoring the tax credit. If I would have received the State rebate I would still break even after one year of ownership on the low end of a trade-in. So, please explain what plot I lost. I just report the facts, without feelings, emotions, or political agenda. If it would have come out that it lost 50% of its value that's what I would have reported. Facts don't care about feelings.
@@thedukeofmanville
If you've bought and sold cars from and to dealerships you know that you generally don't get those numbers but generally if you get near it that's going to be based of the purchase of a new loan, ie. Interest not necessarily the car which is why it's actually not recommended to tell the sales person that you are a cash buyer (they won't generally lower the sticker price when you do that if you're into haggling)
Multiple cars I've sold to dealerships I always go in knowing what the high and low end value could or should be but unless you are truly willing to walk away and not sell without the high end and have patience... low to mid at best is what you should be expecting, not the high end.
If a dealership is selling a car for 75k they will not buy it from you for 75k if you think they would I should assume your opinion of dealerships should be overly positive and you should think they are practically a charity organization rather than price gouging "stealerships"
Dumb......
Only if you are opposed to facts.