I was looking at used Evs and I keep seeing 1 or 2 yr old VW id4s with very little miles for like $25-30k. Is there a reason why they lose their value so quickly? I even saw a 2022 Pro S with 2k miles for $28k. Someone basically lost $20k driving it off the lot 😓
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There are issues with earlier ID4s, and VW has not done well addressing them. Bad software problems, production issues,etc…… they are better now but if I am dropping $40-55k on a vehicle, I’m not buying one that has a recent history of problems.
Yeah I’m surprised that a comment about its issues is so far down. I had LOADS of issues with mine (early 2021 model)
We actually had one on order for a while, but we cancelled it after the software and production stories. Ended up with a Y.
The ID.4 doesn’t compete that well on a pure feature-sheet comparison against other EVs from Tesla, Hundai, Kia, etc.
People who buy them are doing it on brand loyalty and/or a hope their interior and materials quality will be higher than Tesla, Hyundai, etc. But in my experience with my friend’s ID.4, they don’t really shine THAT much in just pure feelings of quality. It’s no Mercedes.
So they don’t sell well.
u/Dr-Bear-MBA
This is a late answer, but it’s the right one.
VW is clearing out 2023’s and in most markets you can drive off the lot with a 50k ID4 and pay roughly 35k by leasing then buying out.
How:
7500 Federal EV credit passed through on a lease up front. (VWoA)
6000 dealer discount (dealer)
1750 lease bonus (VWoA)
Here’s an example:
2023 Pro 46k, Dealer discount 7k= 38,900 - 9250 lease incentives= sub 30k ID4 before TTL.
https://www.lewisvillevw.com/new-Lewisville-2023-Volkswagen-ID4-Pro-1V2CMPE88PC030542
Or it’s the $15k in tax credits we got that turned our $49k car into a $34k one. Things like this tend to take a bite into resell prices
This is one of the more infuriating parts of EVs for me right now. My state doesn’t offer any incentives. But the car is priced the same here as it is in any other state. So even with my best negotiation skills I’m going to be paying more for this car than I would in Colorado or somewhere else. But I may not live here when I go to sell it. My car’s resale value is affected by Colorado policy even though I don’t live there. And yes, I know some states not having sales tax has always been a thing, but I think the incentives have a bigger impact. The default assumption is the car has a bunch of incentives, so you’re screwed if you don’t have those. The default for taxes is that you pay them, not that your state has 0 sales tax.
This. You have to measure the depreciation against what it will cost to buy a new one right now with the various incentives in place.
It will be interesting to see how things shake out over time. I think new EVs will contine to have pretty steep initial depreciation, but actually stabilize a bit in years 3-5. That seems to be the case with a lot of Teslas. Basically rapidly drop below $30k, but stay between 20-30k for a long time. Lots of demand for good, reliable, used cars in that price range.
I’m kinda curious how things shake out in the 20-30k range given the $4k used car tax rebate. It’s income limited and you can’t use it for private sales, but if a $25000 EV can be had for $21000, does that devalue the used car value or increase it?
Almost certainly increases it, but not clear how much effect it will have since it’s only available for vehicles that are resold for the first time. Basically if you buy an EV it will be optimal to hold it until the price drops below $25k before reselling/trading it in. Unfortunately, virtually all leased EVs will be returned before they drop below $25k. When I was EV shopping, most had residuals in the low $30k range, so those EVs will never be eligible for the used tax credit. In short the limited number of vehicles that will be eligible and the limited number of customers who will qualify is likely to limit both the usefulness of the credit and its effect on the used market/residuals.
Oh it’s only for the first time it sells as used? I feel like that’s going to make purchasing even more confusing since people are gonna go in assuming every 20k ish EV will qualify and then end up getting screwed somehow.
Not losing 5k to drive a car off the lot is the historical weirdness. In the 80s and 90s basically you lost 25% on day 1.
So that part seems normal. Why we had used cars going for over MSRP was just due to shortages.
I’m hoping the car bubble is over.
Pre-covid you couldn’t buy a vehicle, drive it for a year, then sell it for a profit.
I knew of guys with a new vehicle continually on order. Because they knew when the next one showed up, they could sell the current one, order another new one, and make money doing it.
I knew a guy driving a vehicle for a dealership because they had it sold out of the country. It had to be insured and driven for a number of months before it could be exported.
It reminds me of the housing bubble where people had multiple new homes being built at the same time. They lost it all when it crashed and they couldn’t make mortgages on 4 houses.
And speaking about houses. My wife’s new car cost more than our first condo.
That’s every car and specially EVs. Polestars brand new go for $60k, wait a year or two and you can get one for $35-40k.
Some EVs just don’t have the demand. A Mercedes EQS starts at 115k and you can pickup one with 1500miles, 6 months old for 65k. Absolutely bonkers
cause they are penalty shit boxes, the door popper mechanism isn’t even strong enough to pop open the door if the cars parked on a steep incline
It doesn’t help the current IDs have a terrible infotainment system that will be replaced with a much better system on the newer versions next year.
Who wants an, at best, OK car with a crap infotainment system now, when the face-lift model will be so much better. Wait a year, or two.
The current ID infotainment system is adequate. Most folks complaining about it have never used it and are parroting (legitimate) complaints about the original 2.1 software from the 2021. The 3.1 software update fixed the lag and most if the bugs.
What’s funny is all the folks who have crapped on the 2.x and 3.x mediocre ID4 software for 2-3 years now blindly assume 4.x will be unicorns and rainbows! 😁
Well the 4.x software looks much snappier from the test drives out there and also more feature-rich and both those count for something
I have tried it, and it was lagging. Maybe that’s fixed now, in which case, good.
But, the lack of backlighting or feedback for the heating controls is still present until the face-lift models arrive. And, as they’re built into the touchscreen, I count those as part of the infotainment system.
If you have an ID and you enjoy it, then that’s great. But I couldn’t live with that system.
That’s fair. As I said, it’s mediocre. Even when I had the old software, it wasn’t so bad that I’d get rid of a car over it.
You should compare used car price to new car price minus tax credit, than it will make it more reasonable
Cg NNN
Software so bad. Brand new car has serious touch screen lag.
People don’t understand the value of used EV’s.
Tax credits, less demand, significant price drops by many brands in the past 12 months, inconvenience of charging (it’s not a Tesla), and uncertainty about the continued lowering of EV prices.
The first generation ID4s are seen to be more problematic than current generation ID4s so there’s an additional discount for reliability concerns on these older models in the used market.
It’s Electric… And a Volkswagen. 🤣 Should be pretty self explanatory there.
OUCH