Dropping like a stone

[Alex1985]

Just been speaking to the dealer ref my new red Trophy and he will not take my 18 month old Corsa-E Elite in part exchange as they cannot resell it. There values have dropped like a stone falling by £1000 per month. I looked at other ev's and they have all dropped dramatically so I am going to cancel the Trophy as I do not want to lose another £12000 a year so I think a 1 year old Kona or Nero which would still have 6 years of warranty and the first year / 18 month value write down would make it a sensible purchase at the moment. The dealer has said that the MG4 is holding a 66% residule over 3 years, I don't think that that is a reliable forcast given the price meltdown that is at presently occuring.

 

[Deleted member 10041]

Just been speaking to the dealer ref my new red Trophy and he will not take my 18 month old Corsa-E Elite in part exchange as they cannot resell it. There values have dropped like a stone falling by £1000 per month. I looked at other ev's and they have all dropped dramatically so I am going to cancel the Trophy as I do not want to lose another £12000 a year so I think a 1 year old Kona or Nero which would still have 6 years of warranty and the first year / 18 month value write down would make it a sensible purchase at the moment. The dealer has said that the MG4 is holding a 66% residule over 3 years, I don't think that that is a reliable forcast given the price meltdown that is at presently occuring.

Totally agree, don't think there are any guarantees with any second hand EVs at the minute

 

[Diggsy]

I’d say the entire car market will be quite a volatile place over the next few years. Prices of used ICE cars are simply ridiculous as well and there is no way they can stay that way, something has to give…

 

[Deleted member 10041]

I’d say the entire car market will be quite a volatile place over the next few years. Prices of used ICE cars are simply ridiculous as well and there is no way they can stay that way, something has to give…

I agree but it would appear that EVs have plummeted first, that's a few examples of cars dropping huge amounts in value between placing an order and delivery

 

[siteguru]

It's Tesla's price drop that has had this impact on the used EV market.

 

[Ian Key]

The market is sorting itself out from the shortage of new cars caused by the shortage of processor chips and the fuel crisis which artificially increased the price of used EVs. With more and more clean air zones being introduced the price of EVs stand a good chance of recovering.

 

[remarkable1967]

I see this as the inevitable tide turn in the ridiculous prices that EVs have been. I was after a new car anyway but if the MG4 SE SR hadn't been very much south of £30k, I wouldn't be on here talking with you good people. I wanted to change to an automatic but had been looking at diesel cars around the £23k - £25k mark. Whilst scrolling though autotrader, I saw the advert for the MG4 starting at £25,995 and although I missed the price increase window and paid £26,995 it still made financial sense after allowing for the diesel electric running costs. Diesel used to be £8.50 per day whereas electric is under £2.00 per day. I knew upfront that a new car would lose money the instant I pulled off the forecourt and I know it will depreciate but it didn't stop me buying it. EV prices were going to have to come down to the sub £30k for anyone to stand a chance. Why do you think that people like VW & Renault want to push the 2030 date out?... Because they know they can't compete with the Chinese brands at the price points they have set. how can a Zoe Iconic cost the same as an MG4 Trophy!! Mégane E-Tech mid range is £39k. Same with ID3, Cupra Born, Mokka-e and Niro. They are all at least £8-£12k too expensive. Someone might boast about "owning a Tesla or Polestar but let's be honest, they aren't spending their own cash... No, it's all about PCP so as long as these monthly numbers work, they will still pay these inflated prices. As they say, a fool and his money are easily parted.

 

[tsedge]

Totally agree, don't think there are any guarantees with any second hand EVs at the minute

That's exactly why we did PCP, so a decent MGFV is protected in an uncertain market.

 

[Deleted member 10041]

It's more to do with the hit people are taking on the EVs they currently have, trying to trade them in for MG4's, in 4,5,6 months they are examples of the trade in prices dropping between £5-£8k.

Going on your statement that ID3's, Cupra Borns, Meganes and e niros are all £8-£12k too expensive. What would you say and MG4 Trophy is overpriced by?

 

[Dan C]

Annoyingly when I bought my MG4 I did a lot of maths / calculations, used EV’s were massively overpriced so they were out of the picture ( Ice cars too ) and all forecasts were that future EV’s were going to be even more expensive with the price of lithium going up and up ( still is to be fair ) plus petrol was very expensive so buying a new MG4 made the most sense and I had been wanting to go electric for years.

I’m quietly hoping that if I sold my MG4 at 3 years old I could get £16k which would result in a £10k loss which is heavy but the fuel savings at £1200 per year will offset that.

If I was in the market right now, I would still buy electric but it would be a 2/3 year old car which I would run for a few years and rinse / repeat.

It's more to do with the hit people are taking on the EVs they currently have, trying to trade them in for MG4's, in 4,5,6 months they are examples of the trade in prices dropping between £5-£8k.

Going on your statement that ID3's, Cupra Borns, Meganes and e niros are all £8-£12k too expensive. What would you say and MG4 Trophy is overpriced by?

Competely agree with the ID3’s / borns being expensive, they are nice cars ( well the born is ) but at nearly £40k for a decent spec new one, no chance.

 

[timeades]

It's more to do with the hit people are taking on the EVs they currently have, trying to trade them in for MG4's, in 4,5,6 months they are examples of the trade in prices dropping between £5-£8k.

Going on your statement that ID3's, Cupra Borns, Meganes and e niros are all £8-£12k too expensive. What would you say and MG4 Trophy is overpriced by?

Next 6 - 12 months or so are going to be interesting for EV's and ICE vehicles.

With ICE manufacturers line up to take a very big hit in China in the next couple of months which is going to hurt their bottom line substantially.

For EV's with the continuing fall in cost of Lithium and other batteries coming on line reducing the cost of producing batteries that is bound to have a knock on effect on EV prices. Couple those factors on the Chinese manufacturers starting to ship and sell models outside of China it's going to be an interesting ride for many traditional Western car groups

 

[tsedge]

Annoyingly when I bought my MG4 I did a lot of maths / calculations, used EV’s were massively overpriced so they were out of the picture ( Ice cars too ) and all forecasts were that future EV’s were going to be even more expensive with the price of lithium going up and up ( still is to be fair ) plus petrol was very expensive so buying a new MG4 made the most sense and I had been wanting to go electric for years.

I’m quietly hoping that if I sold my MG4 at 3 years old I could get £16k which would result in a £10k loss which is heavy but the fuel savings at £1200 per year will offset that.

If I was in the market right now, I would still buy electric but it would be a 2/3 year old car which I would run for a few years and rinse / repeat.

The MGFV for our Trophy after 4 years / 40,000 miles is £16.5k. I have no idea what they will be selling for in 4 years time but if it is peanuts, we'll hand the keys back and move on. If it is worth more, that's great and we may well keep it a lot longer.

All the indicators I have seen is that EVs will plunge in price at some point as they are fundamentally cheaper to make at scale (once manufacturers have converted/built new plants and ramped up). The question is whether that is 2-3 years away or 5-10. Tesla say their next generation will be 50% cheaper to make, but when will it be available in the UK, could be another 3 years.

 

[Cocijo]

If you don’t want to lose a lot of money then don’t get a new car. Unless you receive concessions It’s a very expensive luxury.
Any new car shows a massive loss in value over ownership. It’s only recently that this has not been the case because of extraordinary market conditions.
The markets will start to normalise but the transition to EV’s will still have ups and downs. I miss the market where if you shopped around you could get a great discount and hope that this returns.

 

[stevegus]

If prices are depreciating massively MGs financial arm is going to be screwed when PCP cars come off contract.

I suspect the bean counters are not stupid and that any future depreciation will show in increased monthy rentals and lower residuals on the contract

 

[remarkable1967]

It's more to do with the hit people are taking on the EVs they currently have, trying to trade them in for MG4's, in 4,5,6 months they are examples of the trade in prices dropping between £5-£8k.

Going on your statement that ID3's, Cupra Borns, Meganes and e niros are all £8-£12k too expensive. What would you say and MG4 Trophy is overpriced by?

I would say that a Trophy should be no more than £31k ish. In my opinion the biggest competition to the Trophy is actually the SE long range. The extras on the trophy just aren't worth the additional cost over the SE. You have a built in Satnav when most people just use Waze now, an electric seat with no memory function, a heated seat in a car I can pre-heat from the comfort of my living room and a spoiler that apparently increases drag. The only thing it has that I wouldn't have minded is the reversing camera but even that's a first world problem.

 

[Deleted member 10041]

I would say that a Trophy should be no more than £31k ish. In my opinion the biggest competition to the Trophy is actually the SE long range. The extras on the trophy just aren't worth the additional cost over the SE. You have a built in Satnav when most people just use Waze now, an electric seat with no memory function, a heated seat in a car I can pre-heat from the comfort of my living room and a spoiler that apparently increases drag. The only thing it has that I wouldn't have minded is the reversing camera but even that's a first world problem.

I agree re first world problems but you value the trophy at £31k ish but only value Id3, Borns, Meganes and Niros about £27500-£32k depending on whether you take the £8-£12k off that you reckon they are over priced by. (Valued on mid spec versions of those cars) everyone of them is a better quality car than the trophy (although I'm not a fan of the Id3)

 

[Cocijo]

All of the items on the Trophy should really be standard on the SE

 

[Deleted member 10041]

All of the items on the Trophy should really be standard on the SE

I think if they released a specced up SR it would sell really well

 

[Eber]

All of the items on the Trophy should really be standard on the SE

Many wouldn't be very costly for the manufacturer if at all.

 

[chelsea56]

you will not loose £12000 a year on your trouphy will you as after 3 years it will be a minus figure. No £30000 ev will consistently loose a £ 1000 a month. Yes it may have lost £1000 one month but it’s a blip and he’s panicking. I was in the motor trade for 40 years in sales so I have a good idea on the subject.