Vehicle depreciation

[Dixie]

Hello all,
Has anyone tried to sell, or part ex their Enyaq recently?
I have a 22 plate, 60 ecosuite. Paid £40k for it in October 2022.
After a year of ownership, I have decided EV's are not for me.
I've looked at part ex values and all the "we buy your car" type websites and am absoluteley gobsmacked at residual price of my Enyaq.
As much as 50% depriciation in one year!!!
Anyone else had similar experience?
Not happy!
Dixie.

[orrery]

Part of the issue here is that EVs have been overpriced for a long time. The various lockdowns and then chip shortages (EVs use a lot of chips) meant that lead times went right out - 12 to 18 months in some cases. This pushed 2nd hand prices through the roof.
There are now many more EVs coming on the market, and this chip shortage is relaxing, so the lead times of new cars is falling back towards the industry norm of 12 to 16 weeks for a new build. Some models are now even 'in stock', even the cheaper Chinese ones like MG, and they are even open to negotiation: I know people who have bought brand new BMW i4 and MG ZS with big discounts recently.
All these things are pulling the rug out from the 2nd market. It will settle down, but it could take a long time.
I'm on my 5th EV and the previous 4 were traded back in at a premium - the dealers were phoning me asking me for the car, and the last one I traded in at a profit after only 2 years into a 3 year PCP contract.
That's why I stick to PCP, because one of the options you have it simply to walk away at the end of the contract and leave the car finance people with loss, or buy the car and trade it in at a profit.

[Aragorn]

Selling nearly-new cars is always tricky. Vast majority of buyers want finance of some sort. Thus a private sale can be difficult and many turn to the car buying brokers.

However WBAC and other assorted sites were burned badly on EV's quite recently, as the market was very strong after COVID shortages and then sort of collapsed as supply constraints eased and many ex-lease cars started coming thru, meaning they were left holding the bag on a lot of stock they had paid top dollar for and then couldnt shift. Their response to that has been to massively cut their offers for many EV models.

Manufacturers are also pushing offers like interest free finance on new cars which makes them all the more appealing than used models.

[ricky10]

WBAC and others have much much lower market value of EVs as well as ICE cars. Probably for the reason they need to make a decent amount of money on top.

Autotrader has valuation tool but I doubt that’s what you will get from PX. The realistic value lies somewhere in between.

As others said, selling near new car is difficult as it is a big lump of money and people typically look for finance. Which leaves you the seller, the only option to sought after companies like WBAC.

[Ken3966]

I thought it was strange last April when many were complaining about the year plus wait for there order to arrive.
I had been able to look on line and find my vRS in stock in a colour I wanted with all the options I would have ordered fitted, and with a useful discount. I drive it home a week later.
Looking at similar mileage cars to mine sold second hand it has dropped a lot but I expected that. Hopefully this car will last me a long time.

I wonder what 4 year and older Tesla’s will fetch as so many around now, still rare to see an Enyaq on road and I have yet to see another vRS coupe in 6+ months of having one away from a dealers.

[Dorsetandy]

My 71 plate very well specked iV60 and 72 plate Tesla Model 3 are both on similar 4 year PCP agreements and were similarly priced, ignoring the government plug in grant available on the Enyaq. The Enyaq is financed through VAG and interestingly the guaranteed final value is almost 50% less than my Tesla’s final value, both at 4 years old. This suggests to me that because Tesla’s have a proven track record ( love or hate them) finance companies consider them to be a safer bet in terms of residuals compared to Skoda?

Dixiee - you say EVs are not for you, would be interested to hear your reasons if your willing to share them? Is it EVs in general or Enyaq in particular?

[Dixie]

Hi Dorsetandy,
I like the Enyaq as a vehicle ( and Skodas in general as we've had a few) , so it's not the vehicle, but the pain of planning/ finding a charger and stopping to charge on longer journeys.
In the North/ Scotland this can be a bit of an issue.
Most hotels I stay at don't have charging facilities either.
I just don't think the UK, as a whole, is ready yet for EV's.
Now that the weather has cooled, battery range is getting lower as expected.
Home charging has never been an issue.
I'm unwillung to loose so much on depreciation at the moment, so will perservere for at least another year.
Dixie

[Aragorn]

Are you really doing new unplanned longer journeys regularly?

[Yakin]

Yeah it can be annoying to sell because Government incentives, such as grants and tax breaks for EVs, can impact their depreciation rates. Another big thing is EVs are highly dependent on their batteries, and over time, battery capacity can degrade. This can affect the resale value, as buyers may be concerned about the remaining battery life.

[Dixie]

Aragorn..... I didn't state that I was doing "new unplanned longer journeys".
I said it was a pain planning/ finding chargers in Northern England/ Scotland.
My workload has changed, which takes me further afield.
So yes, I'm doing longer journeys.
A bit off topic to my original post re: Vehicle depreciation, but I was asked for reasons why EVs are not for me by another poster, to which I duly replied.
Not sure why you would query my response.