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kingy

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18/09/24

08:16

Post #: 75718551
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Originally posted by birdman29: ↑

Second-hand electric car prices falling at faster and faster rate
SEPTEMBER 17, 2024
tags:Electric Cars

By Paul Homewood
h/t Philip Bratby
This hardly comes as a surprise!
Electric vehicles (EVs) are losing value at an “unsustainable” rate as a slowdown in consumer demand sends used car prices tumbling, leasing companies have warned.

The British Vehicle Rental & Leasing Association (BVRLA) warned that so-called fleet operators, such as car leasing firms and rental companies,are having to swallow large losseswhen reselling EVs because of “accelerated, exceptional depreciation”.
In most cases, these companies buy new cars and own them for three years before selling them.
Consumers who lease cars during these three-year periods effectively cover the value of losses through monthly payments, which are calculated based on estimates of how much a vehicle is expected to depreciate.
But in the past two years, the typical amount of “residual value” left over at the end of a car’s lease has plunged from 60pc to 35pc, the BVRLA said.
This means a car worth £50,000 when new will now drop to £17,500 in value over three years, instead of £30,000.
This leaves leasing companies facing unexpected losses.
Gerry Keaney, chief executive of the BVRLA, has warned the trend is “not sustainable”.
Speaking at an event in Parliament on Tuesday, he said: “The reality is that EV residual values in the last two years have dropped by 50pc.
“That is the evidence of the accelerated depreciation write-off that we’ve seen. And again, when we look forward two years, the rate of used EVs coming back to the market is about to double.”
Mr Keaney said the large numbers of EVs about to come into the used market was partly owing to the success of adoption through salary sacrifice schemes.
He said that EVs currently account for more than 80pc of cars leased through salary sacrifice schemes.
https://www.telegraph.co.uk/business/2024/09/16/second-hand-electric-car-prices-falling-faster-rate/
The lease companies only have themselves to blame. Any with an ounce of common sense would have told them nobody wants to buy the useless things.
The news is of course disastrous for anybody buying an EV privately. Not only will they have to pay an extra ten grand to buy it, they will also get much less when they come to trade it in.

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more crap from you

A long-forecast slowdown in new motor vehicle sales in Australia appears to have finally arrived, after deliveries declined for the first time in June 2024 following 14 months of consecutive growth, the longest streak in 20 years.June has historically been the biggest month of the year for new-car sales – ahead of the end of the financial year – and it was no different in 2024, recording 119,659 deliveries.However, sales were down 4.2 per cent on the same month last year – and down 8.9 per cent on the all-time June record, set in 2017 with 134,171 deliveries – in a month that saw the Ford Ranger remain the top-selling new vehicle.Industry analysts have long warned of an imminent slowdown in new vehicle sales, citing reduced showroom traffic – and economic pressures from interest rate rises to inflation.
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