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Originally Posted by WarrenC12
I'd be pretty hesitant to buy a new ICE today unless you're leasing or selling in 5 years or less. This market is changing very quickly compared to the products in it, which people often keep for 8-10 years. As soon as new sales start to shift dramatically, used values will drop through the floor. Just my 2 cents.
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It's a very interesting time period. The tech is improving so fast that it is going to have an effect on both ICEV and other BEVs.
Think about it this way. 5 years ago the lowest priced Tesla was an $80k Model S. Today it's a $50k Model 3 that has more range than the middle Model S are its launch 9 years ago. So over the course of a 4 yr lease, if we expect standard range to improve by 10-20%, and MSRP to come down by 10-20% (or new models to open up in a lower category), your car could devalue 20-30% over and and above normal depreciation.
To make matters worse, every large automaker (except Tesla) is only on Gen 1 of their skateboard/platform for most models. So there's a high likelihood of a major refresh for every one of these models in the next 4-5 years, only making depreciation risk worse.
On the ICEV side, the depreciation is really a question of how much BEVs take off and how bad the carbon tax bites. Keep in mind that the government's official target is 30% of sales by 2030. Several automakers are higher. Ford says 40% by 2030 in North America for example. But even if we're at a generous 50-60% of sales by 2030, that's only 20-25% of vehicles on the road that will be electric. There will probably still be a market for used ICEVs then. Though depreciation would be a bit higher.
Quote:
Originally Posted by WarrenC12
You'll never go wrong buying a $5k beater of a reputable manufacturer (like Toyota).
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Probably the way to go in the interim. That said, I really wouldn't be all that worried about getting an ICEV before 2013-2024. Though, it's probably a good idea to really focus on fuel economy because the carbon tax will force depreciation in the outlying years. From 2025 though, the math looks really bad. Those cars will depreciate to near zero well before the end of their useful life.
I wonder if we'll see the Osborne effect on auto sales from 2023-2027.
Ultimately, the coming changes are so substantial that whatever you buy is going to be near zero in value inside of 10 years used.