EV Depreciation

All Skoda Enyaq related discussions
NickyP
Posts: 100
Joined: Wed Feb 09, 2022 8:45 pm

Post by NickyP »

Been reading a few articles lately on how badly EV cars are suffering value wise, nothing specifically Enyaq related more in general terms.

Has anyone noticed this or experienced it, perhaps its the usual press scaremongering claptrap?
MY22 Enyaq 60 nav suite, Race blue, 21" Betria wheels, 100kW charging, Comfort seat pack basic, Climate pack basic, Chrome pack, Driving sport package basic, Assisted drive pack basic, Parking pack basic, Panoramic roof.

ricky10
Posts: 299
Joined: Thu Sep 15, 2022 9:28 am

Post by ricky10 »

EV currently depreciates same as equivalent value ICE cars.

If you got a 45k ice car you expect to loose £15k after first year owner ship which is what EVs are generally experiencing. Unless you got those limited edition cars.

Due to supply being plenty - you don’t have a situation where used EV is more expensive than new ones which are 12m waiting.

Used car market has more or less gone back to normality. That includes EV. Certain brand may hold value better like Tesla. But in all fairness, Tesla has a higher entry point as well. And older models tank hard when revised models are being pushed out - especially with price cuts incorporated.
ComicGeek
Posts: 83
Joined: Sun Feb 06, 2022 8:20 am

Post by ComicGeek »

I'm selling my 18 month Enyaq at the moment, depreciation is what I would expect to see now. Value has been previously kept artificially high and now back to normal. Can't complain as I sold 2 ICEs at the height of the used car market, and I haven't personally lost a penny on the Enyaq as it's a company car.

But depreciation does make you think twice about buying a new car every 3 years, EV or ICE. I was planning to keep my 80 for 8 years before changing, but the speed of EV development and numerous faults with the car has made me change quicker than I wanted to.
Dad
Posts: 128
Joined: Mon Jul 12, 2021 6:00 pm
Location: Berkshire/Surrey border

Post by Dad »

I was planning to sell our 18 month old Enyaq this year due to the increased electricity costs (34p at home and much more on public chargers) coupled with the poor winter range. However the Intelligent Octopus rate of 7.5p is an absolute game changer for us so we are keeping the car.

We were lucky to get the government grant and also a small discount from the dealer so the car cost £34k with the extras and the prices on Autotrader seem to be high 20s which I think is pretty good.
IV60, quartz grey, suite trim, regulus smoke grey alloys, parking basic, climate basic, 100KW charging.

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Dorsetandy
Posts: 263
Joined: Tue Sep 21, 2021 3:49 pm

Post by Dorsetandy »

My 22 month iV60 now costs an extra £8k to replace like for like (or as close as can get with the new packs). I reckon it would cost £20k to update, so I’m going to allow the depreciation curve to flatten before making a decisions. I remain hopeful that at the end of my PCP there will be some equity in the vehicle - if not will just hand back to VAG. It good to have options in these uncertain times.
IV60 Quartz Grey, suite, panoramic sunroof, parking basic, climate plus pack, comfort seat basic, drive sport, chrome pack, transport pack, assisted drive plus and 20” Vega wheels. ME3 upgrade.
Hillocklane
Posts: 48
Joined: Tue Jul 27, 2021 10:07 am

Post by Hillocklane »

Bumping an old post for info…

Just sold my 35 month, slightly under average milage, Enyaq 80 Sportline at 51% residual. I don’t think that’s bad considering it had about £6k of ‘options’ which usually get ignored at this point.

That was through carwow to a dealer, so they must be in demand and holding value well to allow them to buy at that level and add a margin for resale.

Was very tempting to sell at a profit 12 months in when the demand was high, but then we’d have just been burned buying an overpriced used car.

Seem to be some better discounts on enyaqs going via lease and salary sacrifice than skoda PCP. I’d also be another £5k to get a similar spec car again, but it a till looks great value when you look at the price of something like the new Mini Countryman.
anhtuvp
Posts: 13
Joined: Wed Jun 03, 2020 7:56 am

Post by anhtuvp »

I've got an Enyaq, and I haven't noticed a massive drop in value. Sure, EVs in general might see some depreciation like any car, but I think the press sometimes exaggerates things. My Enyaq's been holding up pretty well, and the running costs are super low.
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ricky10
Posts: 299
Joined: Thu Sep 15, 2022 9:28 am

Post by ricky10 »

All it matters is what you get at the end of your lease or PCP.

If the residual is less than what you get on open market you walk away. Or if you get a quote at the end of lease that’s more than open market price walk away.

Otherwise you commit.

Alternative is always to buy second hand cars to minimise your exposure to depreciation. Then you will be making some compromises.

From what I can see over the last 3yr in the EV space and especially regarding Chinese EVs, I don’t think ticket price of EVs will drop significantly. There has been a steady trend of ICE cars being more and more expensive. Which means it will make EV adoption more and more attractive as those prices converge.

On the Chinese EV side, I can guarantee that there is no super cheap Chinese EV coming anytime soon. MG4 and the likes are one off. Everyone is slapping tariffs on Chinese EVs to protection local automakers.

And on battery technology front, movement is glacial. Solid state battery has been touted for over a decade and at best it is limited lab success with real world application probably 10yr away. By which time cold fusion will be a reality if you believe those timescale as well.

LFP was an iteration on NMC cell not revolutionary. Albeit driven primarily by cost and Chinese dominance on those precious metals. NMC will reign supreme for a number of EV generations especially for sports/luxury versions of EV which means cars with NMC has perceived prestige - who knows if that will hold the value better or not. But one would think so.

The biggest driver in EV tech that has potential to drive depreciation will be efficiency. I think there will be a lot of EVs in the next gen or 2 gen able to get 5+ maybe 6m/kwh in real world situation averaged over a 12m period. That’s basically about 25%+ improvement on current systems. This is probably achieve through better battery energy density at battery pack level and thus meaning smaller battery and therefore less weight and smaller but more efficient motor etc etc. but none of these change the paradigm of the current EV operations. Or making them obsolete. Matter of fact the drive to improve efficiency will have some cost penalties due to newer battery configuration as opposed to established manufacturing techniques as well as newer hardware coming off back of the research needing to be paid off.

So overall, unless makers start to make things at cost or loss, I don’t see any significant driving factor on depreciation. Facelifts or revision to established vehicle has limited effect on residuals. Tesla revision usually bring out new hardware which impacts on desirability of existing stock. But they also attract a higher premium generally speaking which means used prices will be held.
Last edited by ricky10 on Sun Jun 09, 2024 9:16 pm, edited 2 times in total.
Steve666
Posts: 13
Joined: Sat Jan 20, 2024 2:41 pm

Post by Steve666 »

Sold my KIA E-Niro 4+ as PX for my Enyaq, I paid £36K for it 3.5 years ago, best I could get for the KIA was £18K, so a 50% depreciation, it was immaculate with 7400 miles on the clock, it performed perfectly electrically, but after having a Skoda Superb 2.0 TDI SE L Executive, the KIA just could not match to quality of the Skoda.
Anyway, as we all know, cars are a mugs game financially, but if they are your hobby, so to speak you take the loss.
Aragorn
Posts: 400
Joined: Mon Dec 05, 2022 5:03 pm

Post by Aragorn »

One of the big issues for depreciation is that in 2021/2022 cars were extremely hard to get hold of, and were selling at huge premiums, due to the effects of the pandemic and parts shortages etc.

When i bought my Enyaq, i was actually seriously tempeted to order another one, becuase in all likelyhood i could have driven my car for a year and sold it for what i paid when the new order finally arrived.

Eventually the bubble burst, and a few years later things have settled down to somewhat more normal depreciation curves, but that means a huge crash from those initial stratospheric prices, and ofcourse a lot of folks looking at depreciation now, are those who bought in 2021/2022.

Futhermore, a lot of dealerships were left high and dry when the market crashed, having paid top money for used cars, and were now left trying to shift them at a loss, EV's especially. Because of that, they are now being extremely cautious and offering significantly lower prices for these cars.

New cars have returned to more normal prices and the dealerships are all offering great deals on new cars with deposit contributions and 0% finance etc etc. These deals further depress the price of the used models.

All of that said, ~50% depreciation after 3 years is fairly typical AFAIK and has long been the benchmark for how much you'll lose?
'21 Enyaq 60 Ecosuite
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