WoodlandHills
Posts: 751
Joined: Mon Sep 15, 2014 4:50 pm
Location: SoCal

Re: Electric Cars Value Tumble (WSJ)

Mon Mar 02, 2015 9:54 am

NormanF wrote:Darn. I'm a lease newbie too. I was hoping that I would be able to buy the car at the end of the lease for a lower price without having to negotiate. Assuming that the i3 depreciates faster than BMW Financial thinks it will. This is also my first BMW so I do not know how well they hold their value. So basically I still have to buy it at the stated residual value on my contract unless I am somehow able to negotiate if the actual residual value is lower. To be honest I'm not that concerned. At least right now.
So why not just turn your i3 back to the dealer at the end of the lease and then buy a used one off sombodys lot for less than the residual? This is not an ICE where careful engine break-in is key to longevity: with no oil changes to miss nor transmission to beat on, EVs will make wonderful used cars.
Clipper Creek HCS-40P 32a EVSE
2014 REx Arravani Grey Giga all options
2008 Infiniti EX35
2008 smart ForTwo Cabriolet
2000 F-250 Powerstroke
2006 Westfield eleven
1984 Laverda RGS-1000

Blue20
Posts: 186
Joined: Tue Jun 17, 2014 2:12 pm
Location: SAE Combo (CCS) Deadzone

Re: Electric Cars Value Tumble (WSJ)

Mon Mar 02, 2015 12:43 pm

hmmm.... $10K for a 2012 Leaf. searching thru used card section on Craiglistslist, I don't see any listing even close to this price.

NormanF
Posts: 26
Joined: Mon Feb 09, 2015 7:29 pm
Location: Near Orlando FL

Re: Electric Cars Value Tumble (WSJ)

Mon Mar 02, 2015 6:55 pm

WoodlandHills wrote:
NormanF wrote:Darn. I'm a lease newbie too. I was hoping that I would be able to buy the car at the end of the lease for a lower price without having to negotiate. Assuming that the i3 depreciates faster than BMW Financial thinks it will. This is also my first BMW so I do not know how well they hold their value. So basically I still have to buy it at the stated residual value on my contract unless I am somehow able to negotiate if the actual residual value is lower. To be honest I'm not that concerned. At least right now.
So why not just turn your i3 back to the dealer at the end of the lease and then buy a used one off sombodys lot for less than the residual? This is not an ICE where careful engine break-in is key to longevity: with no oil changes to miss nor transmission to beat on, EVs will make wonderful used cars.
I'll worry about it in two years. And I have REx so there are oil changes.

WoodlandHills
Posts: 751
Joined: Mon Sep 15, 2014 4:50 pm
Location: SoCal

Re: Electric Cars Value Tumble (WSJ)

Tue Mar 03, 2015 8:44 am

I have the REx too, and given how infrequently the REx runs and how far apart the oil changes are a skipped service will make no difference in the life of the Rex. As long as there IS still oil in the REx as it sits for months at at time w/o ever running it will be fine for many years of inactivity to come.
Clipper Creek HCS-40P 32a EVSE
2014 REx Arravani Grey Giga all options
2008 Infiniti EX35
2008 smart ForTwo Cabriolet
2000 F-250 Powerstroke
2006 Westfield eleven
1984 Laverda RGS-1000

psquare
Posts: 497
Joined: Wed Oct 15, 2014 5:57 am
Location: i3 REx, 225xe Hybrid UK
Contact: Website

Re: Electric Cars Value Tumble (WSJ)

Tue Mar 03, 2015 9:46 am

WoodlandHills wrote:I have the REx too, and given how infrequently the REx runs and how far apart the oil changes are a skipped service will make no difference in the life of the Rex. As long as there IS still oil in the REx as it sits for months at at time w/o ever running it will be fine for many years of inactivity to come.
Speaking of REx oil changes: I went for the service package, which cost me £375 incl VAT and includes all oil replacement, servicing for the REx. The car requires only 2 services over 5 years.

jadnashuanh
Posts: 4981
Joined: Thu May 22, 2014 2:07 pm
Location: Nashua, NH USA

Re: Electric Cars Value Tumble (WSJ)

Tue Mar 03, 2015 3:21 pm

Personally, if I had a REx, I'd change the oil annually, regardless of hours of use, or, sooner, if the computer said to.
Jim DeBruycker
2011 535i x-drive GT, 2014 i3 BEV
Soon (hopefully!) A 2021 X5 45e will replace the above

cab
Posts: 50
Joined: Wed Jan 08, 2014 5:16 pm
Location: Grapevine, TX

Re: Electric Cars Value Tumble (WSJ)

Sat Mar 07, 2015 1:05 pm

I have a loaded 2012 Volt (MSRP was just over $45K)...now 32 months old with about 31K miles. A local Chevy dealer has my EXACT car (same color, options, 30k miles, everything) for $19,577 AND it is a certified pre-owned with a 12mo/12k warranty. Essentially, a "max price" scenario (i.e. dealer, certified, loaded car, etc.). The residual on my lease (which is up in July) is something ridiculous like $27,500. By the time I turn in my car, I would expect it to be offered for $18K or so as a dealer CPO. There will be a lot of the "cheap lease" cars coming off lease here this Summer.

One thing which has definitely impacted Volt resale is the $5K price drop for the 2014 models. I doubt we'll see that with the i3.

As to my next vehicle, there are three likely contenders: BMW i3, new 2016 Volt OR an ultra-cheap used Volt...it is hard to deny the appeal of the latter for a fraction of the price of an i3 rex.
Did he really sell his E39 M5 to buy a Volt?

jadnashuanh
Posts: 4981
Joined: Thu May 22, 2014 2:07 pm
Location: Nashua, NH USA

Re: Electric Cars Value Tumble (WSJ)

Sat Mar 07, 2015 6:51 pm

A used car is almost always more bang for your buck. You may give up the latest features, but someone else has eaten the depreciation, which can be huge. The longer you keep a car, the less of an impact depreciation has, but if you like to replace them before the warranty expires, leasing can be your friend with the down side of a perpetual car payment.
Jim DeBruycker
2011 535i x-drive GT, 2014 i3 BEV
Soon (hopefully!) A 2021 X5 45e will replace the above

imolazhp
Posts: 244
Joined: Sat Mar 28, 2015 8:02 pm

Re: Electric Cars Value Tumble (WSJ)

Sat Mar 28, 2015 8:11 pm

Here is my question...

BMW has already announced that they have created a battery pack that is the same size as the current pack in the i3, but has DOUBLE the capacity (and thus double the range). So... If they decide to put this battery in say the 2016 BMW i3, what happens to the values of the 2014's and 2015's? EV owners typically (not always though) research, research, research before committing to a vehicle. So will everyone that bought instead of leased 2014's and 2015's be left owning less desirable used EV's? And thus not be able to resale them for what they would have had battery technology not improved?

This is part of what has kept me from buying an i3. Here is the link to the article about "The Thing" http://blog.caranddriver.com/meet-bmws- ... the-thing/ 5th paragraph, "...a battery with twice the storage capacity of BMW’s current plug-in hybrids (while maintaining the same physical size), and ..."

Surely I am not the only person that has thought about this.

jadnashuanh
Posts: 4981
Joined: Thu May 22, 2014 2:07 pm
Location: Nashua, NH USA

Re: Electric Cars Value Tumble (WSJ)

Sat Mar 28, 2015 8:36 pm

If the current vehicle meets your commuting needs, do you really care if the new one has so much more capacity? To recharge it would either take twice as long, or, you'd be paying to have a bigger on-board charging circuit and a major upgrade to your EVSE (and many houses won't support that without major costs)...doubling it will mean more weight and costs. I looked at the i3 as a product that will have an extended service life - very little actually wears out, and it's not like the body is going to rust away, or you get a hole in the quarter panels. Unless you're one that always has to have the latest and greatest, I do not see any major safety improvements coming, so I plan to keep mine for longer than my normal purchases. When it gets old enough to consider a battery replacement, I'm sure that there will be options, and there will always be some turn-in value of the existing battery pack. Then, it will be a decision to either buy a whole new vehicle, or upgrade the existing one and, when you keep them long enough, the resale value tends to level off.

There's lots more that can go wrong on an ICE and maybe more reason to consider replacing them more frequently.
Jim DeBruycker
2011 535i x-drive GT, 2014 i3 BEV
Soon (hopefully!) A 2021 X5 45e will replace the above

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