Don't forget, as a co owner if you buy new then you will have a balancing / tax charge of 25% on the asset disposal value. So, the initial tax saving is great but it won't be 25% over the ownership term of the car. Also, this tax rule is set to close for purchases after end March 2025. If you buy 2nd hand, you can currently offset 18% of the value of the car each year against your corp tax. And there is no asset disposable tax charge. Post April 2025 this tax rule will also apply to new EV purchases. I've had my 2nd hand Taycan for 5 months, I saved £50k in depreciation and the tax savings have offset much of it's continued depreciation. It's still an expensive car to own, and I probably bought 4 months too soon, but I can live with that. And it will work out considerably better value than buying new. Having said all that, it would have been way better financially if I kept my old car.
Expect EVs to continue to tank in value. The reason is that the range is poor, much better performance is now being seen in new cars and we can expect much more tech leaps in terms of battery performance/ design. Good for customers but some will take a hit.
Id definitely rather have a 22 plate E Tron GT with 23k miles for £45k than a 20 Plate Taycan 4S with 50k miles at the same price. Same car same performance and in my eyes better looking. Certainly has a better drivers interface than the Taycan....
I have the Etron GT, thankfully got 10k discount on new which helps along with business tax incentives. Its a fantastic daily which I will have to keep for a while for the losses to balance out.
Electric cars are in the space where PCs were 20+ years ago. Rapid development in Components (especially the battery) means the BOM cost is reducing and the range / charging rate increasing each year. This will make it harder for manufacturers to charge a premium . I’m interested in what you find out about longevity of battery and motor. Given the lack of mechanical moving parts, this means an EV should easily outlast an ICE.
FYI my wife’s BMW i3 120Ah bought in 2020 ( mid pandemic) on 4 year PCP which is about to come to an end. Assuming there are no issues at the MOT today we plan to buy it at the end of the month because a) it suits my wife’s needs very well b) balloon payment is lower than current market value.
I appreciate it’s a flick through autotrader that you’re doing. But trying to determine depreciation based on a the cost of the most expensive brand new, loaded flagship model vs the cheapest, oldest, highest mileage, base spec isn’t really logical. P.s I’m a fan so keep the videos coming
Good video - all valid points 👍🏻 I’m hoping my BMW iX drops to around £40k in 2.5 years so that I can afford to buy it. The £100k i5 M60 is the top spec (non full fat M) version, so 600+ bhp, the 40 version has half the power of the M60, hence it’s much more expensive.
5 series is great. They do a 545e so phev but on the old shape. Now have a 7 seat X5 30d. Best all round car - luxury car, sporting rwd chassis, idrive best and safest nav, practical, can tow, economical. Does everything. Won’t change it for years to come.
I think what you are seeing here is a market correction of overpriced to start cars, simple as that, oh and the fact that they don’t work for a lot of people. When they get to 500 miles on a 30 min charge, people will be interested.
Other reasons used EV's are so cheap is worries about the battery condition (has it been abused by lots of fast charging etc), and the very high cost of insurance. I'd never buy a used EV, unless I knew it had been properly charged by its owner.
Theres loads of bmw i5’s on the market many more than i4’s which is weird when they havent been out long and Barely seen many on the road, seems to be alot of pre registered stock and dealers trying to sell them. I can see some big lease offers on these soon
Hybrid is a worst of both worlds solution. All the weight of an EV and all the complexity of an ICE. Enjoy your servicing bills. Ask yourself why legacy auto makers are so keen on pushing hybrids? Anything to do with parts sales and dealer bills you think? There's one born every minute.
@@Challengetheroad I've seen inside the engine compartment of the latest Mercedes hybrids. Barely a few inches of room. I'm not a mechanic but those engines look like a servicing nightmare.
Don't forget, as a co owner if you buy new then you will have a balancing / tax charge of 25% on the asset disposal value.
So, the initial tax saving is great but it won't be 25% over the ownership term of the car.
Also, this tax rule is set to close for purchases after end March 2025.
If you buy 2nd hand, you can currently offset 18% of the value of the car each year against your corp tax.
And there is no asset disposable tax charge.
Post April 2025 this tax rule will also apply to new EV purchases.
I've had my 2nd hand Taycan for 5 months, I saved £50k in depreciation and the tax savings have offset much of it's continued depreciation.
It's still an expensive car to own, and I probably bought 4 months too soon, but I can live with that.
And it will work out considerably better value than buying new.
Having said all that, it would have been way better financially if I kept my old car.
Expect EVs to continue to tank in value. The reason is that the range is poor, much better performance is now being seen in new cars and we can expect much more tech leaps in terms of battery performance/ design. Good for customers but some will take a hit.
Id definitely rather have a 22 plate E Tron GT with 23k miles for £45k than a 20 Plate Taycan 4S with 50k miles at the same price. Same car same performance and in my eyes better looking. Certainly has a better drivers interface than the Taycan....
Both not good enough
I have the Etron GT, thankfully got 10k discount on new which helps along with business tax incentives. Its a fantastic daily which I will have to keep for a while for the losses to balance out.
Electric cars are in the space where PCs were 20+ years ago. Rapid development in Components (especially the battery) means the BOM cost is reducing and the range / charging rate increasing each year. This will make it harder for manufacturers to charge a premium .
I’m interested in what you find out about longevity of battery and motor. Given the lack of mechanical moving parts, this means an EV should easily outlast an ICE.
FYI my wife’s BMW i3 120Ah bought in 2020 ( mid pandemic) on 4 year PCP which is about to come to an end. Assuming there are no issues at the MOT today we plan to buy it at the end of the month because a) it suits my wife’s needs very well b) balloon payment is lower than current market value.
Cheers for your thoughts with the video Richard! My buddy is about to buy an Iconic5 N very soon they did him a little deal at 63299 (gloss blue)
I appreciate it’s a flick through autotrader that you’re doing.
But trying to determine depreciation based on a the cost of the most expensive brand new, loaded flagship model vs the cheapest, oldest, highest mileage, base spec isn’t really logical.
P.s I’m a fan so keep the videos coming
I would imaging the price floor will be the battery value.
Good video - all valid points 👍🏻
I’m hoping my BMW iX drops to around £40k in 2.5 years so that I can afford to buy it.
The £100k i5 M60 is the top spec (non full fat M) version, so 600+ bhp, the 40 version has half the power of the M60, hence it’s much more expensive.
Great video
5 series is great. They do a 545e so phev but on the old shape. Now have a 7 seat X5 30d. Best all round car - luxury car, sporting rwd chassis, idrive best and safest nav, practical, can tow, economical. Does everything. Won’t change it for years to come.
The only issue now is finance for used EV’s getting a decent GTV is out the window so your monthly’s are quite high. Cash buyer would win
Just looked up Fisker Oceans - how cheap?!
How can lease companies lose this much money on them?
I think what you are seeing here is a market correction of overpriced to start cars, simple as that, oh and the fact that they don’t work for a lot of people. When they get to 500 miles on a 30 min charge, people will be interested.
Other reasons used EV's are so cheap is worries about the battery condition (has it been abused by lots of fast charging etc), and the very high cost of insurance. I'd never buy a used EV, unless I knew it had been properly charged by its owner.
Theres loads of bmw i5’s on the market many more than i4’s which is weird when they havent been out long and Barely seen many on the road, seems to be alot of pre registered stock and dealers trying to sell them. I can see some big lease offers on these soon
I have an x3 3.0d but the ix3 is too underpowered to want to make the switch. Why BMW ix3s are so slow vs Tesla Y/Merc?!
Common sense going hybrid.
I can't get om with that Audi rear end, just doesn't work for me.
Hybrid is a worst of both worlds solution. All the weight of an EV and all the complexity of an ICE. Enjoy your servicing bills. Ask yourself why legacy auto makers are so keen on pushing hybrids? Anything to do with parts sales and dealer bills you think? There's one born every minute.
Love the Hybrid - it’s the best way - Solar at home would be even better way to charge.
@@Challengetheroad I've seen inside the engine compartment of the latest Mercedes hybrids. Barely a few inches of room. I'm not a mechanic but those engines look like a servicing nightmare.
Delivered a I4 M50 to a customer last week very very quick with 250 mile range impressive acceleration