What's everyone's thoughts on ev values dropping like a stone

[Jones886]

Yeah I mean I used to have them a lot but I switched to lease but because of all the issues I had with my mg zs ev order last year then a damaged nissan quashaqi I needed a car quick so manged to get that at a good price at the time was listed for 20.5k against others listed at 23-24 k.

I am making plans to stick it out the 4 years wouldn't be no way I'd be loosing that much on it worst case If I go slightly over millage it's only 80 pound per thousand when I come to hand back so I think sitting it out is the best option.

 

[admiralross2400]

Not a big lover of PCP deals myself TBH but each to their own I guess !.
If I was very early into a PCP deal right and looking at the EV residual, I would just sit tight and totally forget about any thoughts of replacing it for the next 12 months.
The drop in prices were sudden but the recovery will be slow.
Dealers are extremely cautious at the moment and this is reflective with regards to valuations they are giving out right now.
Many dealers are still holding stock that they bought at the height of boom and are now struggling to move them on.
They will not be buying in any more stock until these cars are gone IMHO.
Unless they can take in a car with a stupid amount of profit in it, that will off set the loss on these cars gathering dust.

I don't mind PCP especially since I got my MG on the 0% deal so it's literally costing me nothing other than the cars cost.

 

[mederham]

Hi all hope all is well

Just wanted to get everyone's views on the values of ev car's taking a beating of late

Do we think they will recover ?

Is this the start of a massive earthquake in the value of Car's from the an all time high?

If on pcp are finance company's prepared for the hit and an influx of Cars been handed back either mid term or at the end of an agreement ?

So I purchased my car back in January mg5 ev exclusive for 20500 was the cheapest around at the time from a well known dealer now we buy any car valuing around 12.5 k.

That's a drop of around 8k with the finance company stating it will still be worth 11k in 4 years time. I can't see how or when it will recover.

I normally change Cars every two years but I think I'll be in for the long haul with this one for the 4 years which I'm quite happy doing if valuations do not recover.

Be good to hear from everyone

Also got to bear in mind the price you pay is inflated for the margin offset and in no way reflects the actual value of the care. Parkers guide gives some great info on this and what kind of percentage to reduce the forecourt price by to see true value. Having said that, anything is only worth what someone is prepared to pay for it - cars, slightly different I know.

 

[mederham]

I don't mind PCP especially since I got my MG on the 0% deal so it's literally costing me nothing other than the cars cost.

Got my MG5 Exclusive long range through salary sacrifice meaning I save on tax and NI (circa £280/month actual cost to me). Thankful I work for a not for profit org and we are trying to as carbon neutral as we can.

 

[Edoc16]

Also got to bear in mind the price you pay is inflated for the margin offset and in no way reflects the actual value of the care. Parkers guide gives some great info on this and what kind of percentage to reduce the forecourt price by to see true value. Having said that, anything is only worth what someone is prepared to pay for it - cars, slightly different I know.

tried parkers and they estimated my 5 exclusive 22plate @ £18.6k

 

[ianwlk]

Dealers are expecting and getting a £2k plus margin on used car sales at the moment - if they think a car may stick, it will be marked down lower.

 

[SueH]

First new car I'd ever bought in my life was a ZS in autumn 2020; first car over 4000 quid as well! I fancied an EV but SH prices seemed expensive, and then the local dealer had a good deal so I cycled over, had a test drive there and then, and paid cash for a new one a few days later. Very happy with it.

Two years later it needed its 2 year service, so I take it in, had a chat with a salesman and a week later swapped my Exclusive for an MG4. Offering me 600+ over what I paid for the ZS made it a bit of a no brainer. Selling privately would have got a better price, but this way they looked around for a cancelled order - I presume, as there was a waiting list. I said I wanted the cheap colours but in the end was happy enough to splash out for the grey. What's all this about new cars depreciating I thought to myself.. ;-)

A short while later I had to nip in to the dealer and whilst there saw the handover of my old car to the new customers. I was able to reassure the lady that the low mileage was due to a (misdiagnosed) medical issue. So in that case the dealer didn't lose out.

I see no reason to change my car for a while; I normally dispose of at about 12 years old.. so depreciation isn't an issue for me. The market will probably settle down and a few people who have overextended themselves may suffer, but in the longer term a decent used car market will help drive EV uptake. If I were starting to look now I'd certainly be buying used.