How real is car depreciation …

Can’t you charge at home? I imagine daily fast charging would be a hassle. We drive about 100 miles daily and just charge at home, which suits us well.

Val said:
Can’t you charge at home? I imagine daily fast charging would be a hassle. We drive about 100 miles daily and just charge at home, which suits us well.

I do charge at home, but by the time I reach work, the battery is down to 15-20%, so I need to top up before starting my day.

You likely overpaid by about 10k due to markups on the MSRP in 2022. The original MSRP for the 2022 Hyundai Ioniq 5 SEL was significantly lower.

Cars lose value, that’s common knowledge. But purchasing at peak market prices can exacerbate the depreciation when the market shifts.

Reese said:
Cars lose value, that’s common knowledge. But purchasing at peak market prices can exacerbate the depreciation when the market shifts.

Yes, and such a rapid decline in value for a fairly new vehicle is striking

@Thorne
Exactly, hence why it’s crucial to be wary of market peaks.

You can’t have a round trip that’s all uphill

The current market trends might make it seem like bad timing, but this could very well be the future landscape for EVs for some time. Prices are dropping and options are increasing.

Lior said:
The current market trends might make it seem like bad timing, but this could very well be the future landscape for EVs for some time. Prices are dropping and options are increasing.

Another strategy is simply not to sell. Most won’t cover such high annual mileage, so it’s sensible to continue using the vehicle despite its low trade-in value.

@Foster
Certainly, but typically those who can initially spend 60k might not prefer to keep the same car for over five years.

When I bought my sel, it was 45k plus 5k in markups, taxes, gap insurance, and licensing fees, which pushed it to 60k

Grayson said:
When I bought my sel, it was 45k plus 5k in markups, taxes, gap insurance, and licensing fees, which pushed it to 60k

Taxes and insurance premiums don’t count towards depreciation

@Reese
But they do factor into the total loan amount

Check if the battery degradation might be covered under warranty.

Did you consider Carvana? They might offer a bit more.

Oli said:
Did you consider Carvana? They might offer a bit more.

Yes, but their offer was similar to others

My Tesla Model 3 lost over 50% of its value in four years. It seems all cars are subject to significant depreciation.

Rafe said:
My Tesla Model 3 lost over 50% of its value in four years. It seems all cars are subject to significant depreciation.

Indeed, the market was very different just a few years ago, but it’s shifting away from EVs now.

@Grayson
That’s the typical behavior of the car market before the pandemic. The unusual circumstances back then caused used car values to spike.

220 miles daily is an excessive amount to drive. That sums up to about 60k miles annually.