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Yes, but there is no incentive for Person A to choose a brand new Corolla when it's $22K and the alternative is $15K. The value depreciation when they sell to p

Yes, but there is no incentive for Person A to choose a brand new Corolla when it's $22K and the alternative is $15K. The value depreciation when they sell to person B will be lower than the Corolla, especially when factoring the fuel savings in.

rayiner 3y ago
Why do you think there will be a lower value depreciation for a Chinese EV than a Toyota? Toyotas have insane resale value. We bought a 2012 Toyota 4Runner used for $30,000 in 2016. KBB on it now, at 12 years old and 130,000 miles, is still $15-18k.
- selcuka 3y ago
  > Why do you think there will be a lower value depreciation for a Chinese EV than a Toyota? Because it's cheaper to buy and cheaper to drive. Let's start with your example (12 years, 130K miles, 50% depreciation). Let's assume that the EV depreciates much more (80%): Corolla value depreciation = $11K BYD Value depreciation: $12K From a purely financial perspective, it doesn't mean to invest $22K instead of $15K for a $1K gain after 12 years. Now the calculation above does not take the energy costs into account [1]: Petrol cost @ 130K miles = $20K Electric cost @ 130K miles = $4.5K [1] https://avt.inl.gov/sites/default/files/pdf/fsev/costs.pdf https://avt.inl.gov/sites/default/files/pdf/fsev/costs.pdf
  - 0x3333 3y ago
    Nailed it, that's the point. I don't know why people love cars that last forever, even if financially it doesn't make sense for the first owner.
    - toomuchtodo 3y ago
      Because they’re emotionally tied to the idea of longevity vs service life.
lannisterstark 3y ago
>Yes, but there is no incentive for Person A to choose a brand new Corolla when it's $22K and the alternative is $15K "Hey I know Corollas last a while, and wtf is this weird-ass company I've never heard of? I'm sticking with Toyota." ^ Incentive enough.
- kgabis 3y ago
  In a few years it'll be like "Oh, it's BYD, they're everywhere right now, of course I'll buy it second hand".

rayiner 3y ago

Why do you think there will be a lower value depreciation for a Chinese EV than a Toyota? Toyotas have insane resale value. We bought a 2012 Toyota 4Runner used for $30,000 in 2016. KBB on it now, at 12 years old and 130,000 miles, is still $15-18k.

selcuka 3y ago
> Why do you think there will be a lower value depreciation for a Chinese EV than a Toyota? Because it's cheaper to buy and cheaper to drive. Let's start with your example (12 years, 130K miles, 50% depreciation). Let's assume that the EV depreciates much more (80%): Corolla value depreciation = $11K BYD Value depreciation: $12K From a purely financial perspective, it doesn't mean to invest $22K instead of $15K for a $1K gain after 12 years. Now the calculation above does not take the energy costs into account [1]: Petrol cost @ 130K miles = $20K Electric cost @ 130K miles = $4.5K [1] https://avt.inl.gov/sites/default/files/pdf/fsev/costs.pdf https://avt.inl.gov/sites/default/files/pdf/fsev/costs.pdf
- 0x3333 3y ago
  Nailed it, that's the point. I don't know why people love cars that last forever, even if financially it doesn't make sense for the first owner.
  - toomuchtodo 3y ago
    Because they’re emotionally tied to the idea of longevity vs service life.

lannisterstark 3y ago

>Yes, but there is no incentive for Person A to choose a brand new Corolla when it's $22K and the alternative is $15K "Hey I know Corollas last a while, and wtf is this weird-ass company I've never heard of? I'm sticking with Toyota." ^ Incentive enough.

kgabis 3y ago
In a few years it'll be like "Oh, it's BYD, they're everywhere right now, of course I'll buy it second hand".