EV PRICES Are Heading For ROCK BOTTOM!
Hello and welcome back to another EV focused video specifically the abysmal depreciation trends that they’re currently following why it’s happening and where it’s likely to go in the future buckle up for this one now it isn’t exactly news that depreciation is a major consideration and even issue
When it comes to these EVS but honestly I think we’ve only seen the eye of the storm I think things are going to get much much worse and here’s why amongst private consumers Fleet operators and corporations have definitely played their part in boosting EV sales numbers over the last few years however the
Recent sale of 20,000 Teslas by hers definitely starts to call into question whether that’s going to continue as well as the overall commercial viability of them now I’ve seen a lot of speculation as to why they sold up but straight from the horse’s mouth the chief executive of
Herz said it was due to Tesla’s unprecedented price cuts on their new cars which in turn absolutely Slaughters the value of their used existing Fleet which really left them no choice but to sell up now the impact of Tesla doing this cannot be understated because it will obviously completely obliterate the
Used values not just for a massive corporate conglomerate like hers but Joe blogs with these life savings put into one of these cars now here’s the thing it’s not just Tesla as Auto Trader reports manufacturers are now applying record discounts to new electric vehicles in a bid to boost the
Stuttering demand well I mean what else can they do the cars aren’t selling they’re going to need to slash the prices so why aren’t the cars selling then well let’s look at it you’ve got the threat of Manufacturers introducing more price Cuts slashing the value of your asset you’ve got higher
Depreciation you’ve got higher Insurance you’ve got higher repair costs and you’ve got a battery in there threatening to write the entire car off when it eventually reaches end of life or if it gets damaged as we spoke about in another video so maybe now you’re starting to see why I’m saying I think
We’re only seeing the eye of the storm in terms of this bottomless depreciation we’ve also got the added threat of budget electric cars coming out of China as well as is widely believed is going to be the case over the next few years all of this is just driving the prices
Down and down and down now interestingly just in the last few days Ford have actually announced that they have halfed the production of their new EV pickup the lightning let’s take a look good morning Carl this is Ford announcing on April 1st that it will be cutting its
Production of the F-150 Lightning going from two shifts which it currently operates at its Rouge complex just outside of Detroit where they build the F-150 Lightning they’re going to bring that down to one shift starting in April 1st some of those workers about 1400 impacted they’re going to be transitioned over to additional
Production for the Bronco and the ranger this is if you’re thinking to yourself wait a second didn’t they just cut their guidance in terms of EV production yeah they did that last month basically cut their 2024 production plan in half and now they are saying we are going to be
Cutting lightning production again I mean it really just ties into everything that we’re seeing in this video and it’s a smart move by Ford you can’t just keep making these things and stockpiling them somewhere otherwise we’re going to end up in the saturated price slashing Market that Tesla finds himself in
Here’s something else to consider as well between 2020 and 2023 800 100,000 new EVS were registered given that we’re now in 2024 and a lot of those were done on three-year lease deals they’re going to be funling back into the used market now further increasing the supply while
The demand continues to dwindle now that’s only going to do one thing to residuales it’ll improve them massively no no it won’t it’ll continue to them so I mean get a lot of this okay it’s not something that everyone’s buying clearly uh brand new Porsche takan originally advertised last year
For £63,000 and it’s been dropped a massive £34,000 34,000 buy a nice car in the first place 21% drop overall down 129,000 unreal now I think the thing that’s important to mention here is it’s not just these highflying you know super car level type uh purchases that are
Suffering from it if we look at this here is a model 3 you know much more everyday much more maybe familyfriendly budget okay 20K is still a lot on a car but it’s it’s closer uh originally listed for 25 A2 dropped by 23% to 19,700 and obviously it’s maybe not
Enough because it still sat there still on the market this isn’t some old used up Tesla either by the way this is a 2020 car with what 50,000 M yeah here’s another quick tip if you are looking to buy a car Eevee or otherwise check out vehicle score guys
This is really good put the plate in I’ve used this Tesla in this case and it’ll give that car a score now that scores based off lots of different things in that car’s history and it’ll give you a rough idea of the good bits and the bad bits about this car totally
Free service check it out so what is going to happen from here then well no one’s got a crystal ball but if you’re asking me I think manufacturers are going to continue to take one of two taxs they’re either going to go the Tesla route slash the prices basically
Introducing the subsidies that were already on the car in the first place or they’ll go the Ford drout slash the production and try and balance out the supply and demand once more either way it really calls into question the commercial viability of these EVs and that’s really all we observe and here as
The market continues to fluctuate and people are unwilling to take the risk on them now as ever I would love to hear your thoughts in the comments below so please do leave one give this video a like and also if you enjoy these sorts of video please do hit the subscribe
Button and I’ll see you for the next one
EV depreciation is unsustainable. EV’s continue to fall in value!
Thinking of Buying an Electric Vehicle or Hybrid? Depreciation is set to get WORSE!
As always let me know your thoughts in the comments below.
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