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No idea why the fascination on EVs but for accuracy, all vehicles are free falling in both wholesale and retail prices. The price drops are so fast that window stickers cannot keep up with the changes. Call, visit or contact the sellers (dealerships, sales…) for price negotiations.
Go on auto trader now and you’ll see the price drops LISTED on each page for vehicles in another attempt to motivate car buyers. For example, many $30k vehicles in mid November are now being priced at $25k and the listing shows the active weekly price drops to get to $25k. This is the online adverted prices, not the actual prices. Vans and compact sedans are dropping the most (on average percentage drops).
All these price droppings are not related to the Fed publicly hinting at rate drops in early 2024. Those rate drops are not indicators of a successful economy but a troubled economy. For planning, used car loans will still be double digits in 2024. Good luck shopping!
The EV drop has been sharper though. Like on the one I picked up it went from going for MSRP if you could even get it for that cheap on a used one to over 20k under MSRP very quickly. They've fallen a bit more since I bought in June so I could have held out longer for some more savings. The fascination should really be from two groups... A is people that would like to buy an EV but are a bit more powertrain agnostic as I am where they're not so keen on buying one at a huge premium over a gas car and people who have a hatred of EVs because they think they're political. For the people that would like to buy one it is huge. EVs went from extremely hard to get with Tesla raising prices by 15-19k on their basic Model 3/Y cars and having a nine month waitlist to acquirable. Tesla has dropped most of the COVID markups and on things like the Ioniq 5 it's gone from 4-6k over MSRP to 5k off MSRP and waiting for months to it being much more normal with cars on the lots. Used EVs actually make sense to buy rather than being something you paid MSRP or over for because you wanted one now.
For the smaller one though why not use an E-Transit? More flexible in size as not everyone needs even the smaller 500 Rivian. There's some nice features and the extra range would be a reason. But the E-Transit is about 30k less.
Here is a review of a 2022 E-Transit 350-series high roof, being run by a plumbing company in MO. Ford must be rating the range conservatively, because it's rated at 108mi of range, but if they put it in eco-mode and use the regenerative braking, they're finding it's good for about 140 miles fully loaded with just under a 2,000lb payload. He notes that their typical service routes have a lot of in-town driving and that's more efficient for an EV (opposite of an ICE vehicle).
The thing they really like is, they use more than $100/week in fuel in their gas vans (ICE Transits averaging 13.5mpg for them), but they're using less than $8/week in electricity in the E-Transit averaging 2.3mi/kWh in the E-Transit, so they're getting big fuel savings - about $5k per year per van. There's actually a lot of good data in this review, considering they're not auto journalists, they're plumbers.
There was a bunch of articles the last several days trying to spin or discuss what seems to be the freefall of used EV prices.
EVs lost 30% of their value in the last 12 months as ICE vehicles lost only 5%.
There was artifical demand that hit the new car market with the tax incentives and reason two is nobody wants to own a brick, and demand is just not there for them.
Now according to CNBC consumers are viewing them as horrible investments in comparison to ice counterparts.
The article states: Studies show that used EV prices fell somewhere around 30% in September and October 2023 from the same period in 2022. Used overall vehicle prices including ICE, hybrid and EVs declined by only around 5%. It is mainly due to Tesla lowering its prices of its new cars.
I know a few folks that have defaulted on their car payments and let it go to repo, mostly due to price drops.
Why would anyone do that? I can maybe understand if they couldn’t afford the payments anymore, but defaulting only because of price drops? Wouldn’t the impact on credit rating be more costly in the long run?
I bought my most recent vehicle at a time when prices were a bit elevated, but I bought the vehicle knowing that I would be keeping it for a long time. So, I don’t really care what the value of it is right now, as I’m not trying to sell and in general, vehicles depreciate. I would never think “omg, new prices have come down a bit, so I need to default!”
Why would anyone do that? I can maybe understand if they couldn’t afford the payments anymore, but defaulting only because of price drops? Wouldn’t the impact on credit rating be more costly in the long run?
I bought my most recent vehicle at a time when prices were a bit elevated, but I bought the vehicle knowing that I would be keeping it for a long time. So, I don’t really care what the value of it is right now, as I’m not trying to sell and in general, vehicles depreciate. I would never think “omg, new prices have come down a bit, so I need to default!”
I agree, I don't understand it either. But then again some people are so committed to their "thing" that they will cut off their nose to spite their face.
Why would anyone do that? I can maybe understand if they couldn’t afford the payments anymore, but defaulting only because of price drops? Wouldn’t the impact on credit rating be more costly in the long run?”
You have to realize these were not the Dave Ramsey's of the crowd.
It was probably a combination of things. They bought a car that they could barely afford and now it needs some basic maintenance or repair that adds to the monthly cost, so they let it go.
I agree that if they want to finance another car, with the new rates, they won't be getting much.
I really didn't ask why tho, was just listening as otherwise they would feel like I am judging (which I probably was!)
Why would anyone do that? I can maybe understand if they couldn’t afford the payments anymore, but defaulting only because of price drops? Wouldn’t the impact on credit rating be more costly in the long run?
I bought my most recent vehicle at a time when prices were a bit elevated, but I bought the vehicle knowing that I would be keeping it for a long time. So, I don’t really care what the value of it is right now, as I’m not trying to sell and in general, vehicles depreciate. I would never think “omg, new prices have come down a bit, so I need to default!”
It could definitely ruin your credit rating. And of course the car can be repossessed. Generally speaking, I think you can be sued if you owe money and won't pay - and the court may order you to pay using any assets you have, or garnish your wages.
I don't have experience not paying my bills, but I don't think it's an easy course, nor should it be.
There was a bunch of articles the last several days trying to spin or discuss what seems to be the freefall of used EV prices.
EVs lost 30% of their value in the last 12 months as ICE vehicles lost only 5%.
There was artifical demand that hit the new car market with the tax incentives and reason two is nobody wants to own a brick, and demand is just not there for them.
Now according to CNBC consumers are viewing them as horrible investments in comparison to ice counterparts.
I try not to get super political, but Biden was trying to pass around a bowl of kool-aid last year saying EV's were the next best thing and, "everybody buy electric". We certainly did not, and it looks like alot of others like us are also just staying with ICEs. You can fill em up on any corner that has gas station and they just work.
We currently have a little Corolla that's great, plus two cars given to us --one in a loved one's estate RIP and one sold to us for a buck by my in-laws. I call the 2 extra cars "spares" after the insane used market in 2021. We alternate driving all 3 so they stay exercised. And we're in our 50's and I mostly work from home. My wife doesn't work and doesn't drive much at all. So technically we might not have to buy many more new (ICE) cars ever, so we're just running the 3 cars we have into the ground. More worth it at this point to pay NC property tax on each (low KBB value) annually than to only keep the one Corolla and have to search for an overpriced used ICE when the Toyota kicks it.
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