Eddie Cunningham's recent article in the Irish Independent sheds light on a startling aspect of electric vehicle (EV) ownership: significant depreciation. The piece centers around Adrian Weckler’s experience with his Volkswagen ID.3, which lost nearly €15,000 in value within a year.
Key Points from the Article:
- Rapid Depreciation: The story highlights how the fast-paced development of EVs can lead to steep depreciation rates. As newer, superior models are released, existing EVs can quickly lose value.
- Industry Impact: Adrian's experience has sent shockwaves across the motor industry, raising concerns about the financial viability of investing in current EV models.
- Consumer Dilemma: This situation poses a challenge for potential buyers, who might now be more inclined to opt for hybrids as an interim solution until BEVs become more financially stable.
- Factors Influencing Depreciation: The depreciation of EVs is influenced by various factors, including automakers' pricing strategies, government support for used BEVs, the charging infrastructure, and the price gap between BEVs and traditional fuel vehicles.
- Advice for Buyers: Cunningham advises buyers, especially those considering Personal Contract Purchase (PCP) deals, to pay close attention to the guaranteed minimum future value (GMFV) of the car. This helps gauge the level of depreciation and decide if it's acceptable.
- Call to Action for Distributors: The article emphasizes the need for distributors to address the depreciation problem, as expecting customers to absorb such significant losses is unreasonable.
Cunningham's article highlights an often-overlooked challenge in the EV market: rapid depreciation. As the industry evolves, this issue remains a key consideration for both consumers and manufacturers.
Read the full article here: How can a year-old electrical vehicle ‘lose’ €15,000?
