EV depreciation?

[Suzukiridr14]

This article brings to light one should also consider before investing or buying an EV

https://www.autoevolution.com/news/...k-miles-can-t-even-get-51k-for-it-241443.html

I feel that a EV truck is limited in it's use due to the harder you use it, the faster the battery depleats. You can't drive it all day with a load, or trailer, so it's just live having a SUV, not a working vehicle that on the job for 8 hours, or more. Again, the first owner gets hit with the biggest drop in value.

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[Hunters Edge]

The depreciation on ANY vehicle is a known quantity....EV's are in most cases. higher...but they ALL depreciate....a vehicle is a terrible investment and everyone knows that.

That's not quite true. Every entrepreneur knows it takes money to make money. Your investing to get to work and back on time and efficiently, to make money. Knowing downtime is not cost effective also trying to ensure when its time to sell to maintain the highest resale.

For many it's the biggest investment they make in life if they rent for the rest it's the second most expensive investment after a home purchase. To me it's an investment to keep a roof over my head. Know that I'm retired I invest to keep from being stranded on the side of the road and to get groceries and keep doctor appointments. Besides the upkeep on the farm/property.

Also many buying work and fleet vehicles are for investment or cost of doing business. All though I think everyone is looking for the best return on any investment or outlay of cash.

 

[ScottyC]

That's not quite true. Every entrepreneur knows it takes money to make money. Your investing to get to work and back on time and efficiently, to make money. Knowing downtime is not cost effective also trying to ensure when its time to sell to maintain the highest resale.

For many it's the biggest investment they make in life if they rent for the rest it's the second most expensive investment after a home purchase. To me it's an investment to keep a roof over my head. Know that I'm retired I invest to keep from being stranded on the side of the road and to get groceries and keep doctor appointments. Besides the upkeep on the farm/property.

Also many buying work and fleet vehicles are for investment or cost of doing business. All though I think everyone is looking for the best return on any investment or outlay of cash.

The actual point of sale of the vehicle is when depreciation begins and the "entrepreneur" starts writing off said depreciation as soon as possible. Said "entrepreneur" is making profit on the business they run, not the vehicle they drove up in.

 

[Hunters Edge]

The actual point of sale of the vehicle is when depreciation begins and the "entrepreneur" starts writing off said depreciation as soon as possible. Said "entrepreneur" is making profit on the business they run, not the vehicle they drove up in.

You missed my point it takes money to make money. Unless you can walk to work, mass transit or work from home a vehicle is a investment to get to work.

 

[Hunters Edge]

Every tool I bought to "earn a living" lost value the moment I took it out of the box. Same with the vehicles I used to get to the job. Anyone who doesn't understand that likely never was in business. I actually bought a laptop on Ebay that only had DOS on it to do some jobs. It was worthless when I retired but made me thousands of dollars.

Most likely those tools didn't come close to the cost of a home or a new vehicle. The point being you still invested in those tools to keep or do a job to make a living.

Don't know what used tools go for but certain used vehicles hold there value more than others. The article depicts that EV are depreciating a lot faster than a gas vehicle in comparison. Hey please keep in mind I didn't write the article. Two reasons for this possibly is used EV vehicles do not get a tax break or incentives like a new one. Second reason as it ages the batteries don't work as well or go as far and eventually will need replaced, and they are so expensive both part and labor.

 

[Hunters Edge]

Not the cost of a home. Over 47 years I would guess I spent over 50k on tools, equipment, and computers to do the job. But the vehicle was a tool and still is. I expect it to lose value as I use it up. Also a home isn't a good investment if you really look at the cost of ownership versus the price you get when you sell. If you stay for 20 or more years and look at the interest, taxes, insurance upkeep etc. you lose money when you sell in most cases.

If you lose money is that why they still have capital gain tax on home sales? Most use tax deductions on interest of a home. Some states offer tax deductions on paid property tax.

So all these TV shows are loosing money when flipping homes?

I'm done not having a conversation with someone that is stating false claims. Have a great day

 

[ScottyC]

You missed my point it takes money to make money. Unless you can walk to work, mass transit or work from home a vehicle is a investment to get to work.

It is a depreciating loss. Period. If possible, lease a vehicle instead to maximize your profit without taking a beating on the purchase of the vehicle.

 

[Surly Old Bill]

Depreciation on the Bronco is about the same.
When they first came out, some models were selling for almost double the MSRP, because some people HAD to have them asap cuz they were a new model. Now, those same ones that sold for over $150k are being sold used for under $60k with only 25k miles.
Same thing happening with CyberTruck.

I've noticed in the last few months that used car prices are dropping like a stone. Even up until a year ago I could have sold my used Transit(not Connect) 250MR with 150k miles for more than I paid new in 2016, but now I see that I could only expect $15-20k at best.

 

[Surly Old Bill]

That's right, I live in a working class area where many men and women served in the military and work with their hands. We do not have 60-70K to dump on some glitzy EV you left coast Hollywood types seem so willing to embrace. But, good for you. You live in an affluent neighborhood of LA with globs of money. Good for you sounds like the capitalist system has been good for you.. That's what it is all about. America First. Congrats on that.

Our local GMC dealer has been sitting on a $152,000 Hummer for 3 months now. Maybe one of your neighbors would be interested in it.

I live in an area where if you make less than $110k a year, you're "low income" and can access some assistance programs (I haven't). My house in an undesirable low income area is worth about $1,000,000. It's all relative.
I have gone to flyover country to buy my last two full size vans; a Sprinter in '06 and a Transit(not Connect) in '16. I saved many thousands over the typical dealer prices; often MSRP +$5000-10,000+, in CA by doing this, and had great roadtrips on the way back after the one-way flight to MO or TX.
Vehicle prices vary across the country, based on how much the dealerships are willing to take off, or add to, the MSRP. Airfare is still pretty cheap. Thankfully I bought the 100% Mexican made Maverick before the tariffs take effect, and while they were offering employee pricing everywhere. With the tariffs and the rapidly increasing inflation, I suspect the base model will be close to $35k in less than a year, and likely more. I feel sorry for the people in the lower income States, because that's a LOT of money for them.
I also work with my hands and build and make stuff for a living, so I can understand the true value of a thing, and not be impressed by shiney plastic and loud engines.

 

[Surly Old Bill]

It is a depreciating loss. Period. If possible, lease a vehicle instead to maximize your profit without taking a beating on the purchase of the vehicle.

Also a possible tax right-off if used for business. But so is a purchase, and mileage.

 

[Roadrunner11]

As to whoever wants to think West Coast people are all into evs. That just isn't so!

As to why people buy what they buy,
Isnt always pending what they can afford ... meaning some people are more budget minded than debt happy.


To that
EV hummer
whatever the reason is people buy one of those... that's a giant bling bling item.
Says something about the driver whether you like it or not.
#gucciyourazz

I know why people where I live would buy one, if they could afford it. Cause they want to live.

 

[Surly Old Bill]

The depreciation on ANY vehicle is a known quantity....EV's are in most cases. higher...but they ALL depreciate....a vehicle is a terrible investment and everyone knows that.

yeah, they aren't an "investment" in themselves, they are more akin to a hammer, shovel, or other tool. They are made to do a task easier or faster than not having one, and are often necessary to even DO a task. For example; I would "invest" in a hammer if I were building a fence, and if I felt a little douchebaggy, gaudy, and socially insecure I'd "invest" in a $250 titanium hammer, and decorate it with aftermarket hammer accessories. You see the same choices being made in vehicles.
And people forget about inflation and how it relates to a vehicle's "value". Check out the inflation calculator to see if your vehicle has kept pace with inflation:
https://www.usinflationcalculator.com/

My '69 Nova SS beats inflation, but only in the last 20 years or so. If you want to "invest", it's best to get CDs or Money Market account and just let it sit.

 

[MaverRick]

The depreciation on the mach-e is insane.

We sold ours back to Ford after 18 months of ownership. Loved the car but didnt trust the charging infrastructure for doing road trips. We basically broke even considering the tax incentive we got. After that the market bottemed out! We were getting offers from Carvana for less than half of what we sold it for!!

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