Chinese sourced EV's have a steep depreciation issue!

[TaxmanHog]

Chinese electric cars are entering the European market in a big way. Relying on massive government subsidies, Chinese electric cars can be sold at ultra-low prices.

This has led to the entry-level market in Europe being heavily eroded. However, the German automotive valuation agency found that the depreciation speed of Chinese electric cars and PHEV models is 2 times the industry average, and the speed is still accelerating, making many owners who bought brand new Chinese electric cars start to regret it.

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[hb.sagen]

Norway don’t make any cars, and we are hellbent on electrifying the cars. The average age of an ice is 12 years. 2025 was the last year ice was sold.

There is a lot of makes from china rolling on our roads. They are half the price of eu or us cars. And have “all” the features in their base pack.

We are discovering off-switches in our public Chinese ev-busses.

And a lot of chatter from the cars back to their motherland.

 

[Grumpy2]

It is up to the buyer to research good and bad vehicles. Hundreds of Chinese cheap crappy cars are available in China; it is misleading to lump all of them together. Farley identified one excellent make and model.

 

[Rice_classic]

Norway don’t make any cars, and we are hellbent on electrifying the cars. The average age of an ice is 12 years. 2025 was the last year ice was sold.

There is a lot of makes from china rolling on our roads. They are half the price of eu or us cars. And have “all” the features in their base pack.

We are discovering off-switches in our public Chinese ev-busses.

And a lot of chatter from the cars back to their motherland.

I say let them in… but without modems. Software updates done through USB.

If they want to sell them here fine, just make data capture and transmission not a thing. Done.

 

[electricpig]

Norway don’t make any cars, and we are hellbent on electrifying the cars. The average age of an ice is 12 years. 2025 was the last year ice was sold.

There is a lot of makes from china rolling on our roads. They are half the price of eu or us cars. And have “all” the features in their base pack.

We are discovering off-switches in our public Chinese ev-busses.

And a lot of chatter from the cars back to their motherland.

Oh you mean like Western car makers selling personal data, following your every action etc.

 

[kf59]

Chinese electric cars are entering the European market in a big way. Relying on massive government subsidies, Chinese electric cars can be sold at ultra-low prices.

This has led to the entry-level market in Europe being heavily eroded. However, the German automotive valuation agency found that the depreciation speed of Chinese electric cars and PHEV models is 2 times the industry average, and the speed is still accelerating, making many owners who bought brand new Chinese electric cars start to regret it.

Time value of money: present cash is worth more than future cash. If a vehicle costs half as much, then it would take a lot future depreciation to make the present value less, performance not withstanding.

 

[joshtb86]

a car is not an investment and depreciates the second it is taken off of the lot. why does this even deserve attention?

 

[kf59]

a car is not an investment and depreciates the second it is taken off of the lot. why does this even deserve attention?

Indeed from a balance sheet perspective, this is true but the cash implications of depreciation are only realized when the item is sold in the future. So, just another reason not to factor in depreciation unless you plan to only keep it a short while.

 

[joshtb86]

Because the RATE of depreciation does still matter. Buying a $40,000 car and having it worth $20,000 a year later is a lot different than having it worth $38,000 a year later (cough, Toyota, cough)

I mean I would argue you should never buy a car for only one year of use that just makes no sense financially to begin with.

 

[Altivec]

I know this is intended to instil fear of Chinese cars for the sake of American Auto but your claim is misleading. If I am buying an 80k car that depreciates 25% to 60k over a year, it means I lost 20k. Now if I buy a similar car for 30k but it depreciates by 50% to 15k over a year, which numbers would you rather take?

This is also based on the nonsense of buying a car as an investment or some other crazy notion. Most people buy cars to keep for a while. If that's the case, which car do you think is going to lose you the most money overall (because the actual dollars spent and recovered is what really matters, not percentage). So the 30k car will become 10k (66% depreciation) and the 80k car will become 40k (only a 50% depreciation). So I ask the same question. Which numbers would you rather take?

 

[Sleazy-E]

Chinese electric cars are entering the European market in a big way. Relying on massive government subsidies, Chinese electric cars can be sold at ultra-low prices.

This has led to the entry-level market in Europe being heavily eroded. However, the German automotive valuation agency found that the depreciation speed of Chinese electric cars and PHEV models is 2 times the industry average, and the speed is still accelerating, making many owners who bought brand new Chinese electric cars start to regret it.

Just noting that China Observer is funded by Falun Gong and not really an unbiased source re: Chinese EV’s or the CCP. No dog in the fight, only context.

 

[TaxmanHog]

STEEP & SUDDEN is the critical issue with many Chinese offerings.

 

[TaxmanHog]

Just noting that China Observer is funded by Falun Gong and not really an unbiased source re: Chinese EV’s or the CCP. No dog in the fight, only context.

Yes they are, and some folks have POINTED that out on my prior postings, they're still more reliable than "state" propaganda.

 

[chl]

Does anyone really care about automotive depreciation besides business owners, people who lease them, or people whose vehicles have been involved in accidents leaving them upside down in loans (but there is gap insurance for that)?

Tell me why I should care about depreciation.

I tend to buy-not-lease and I hang on to vehicles as long as possible, so yearly depreciation is of no consequence to me.

And if you hang on to one and keep it in good condition, someday it could become a 'classic collectors item' and be worth more than you paid for it, lol.

The enormous appreciation available from other assets such as real estate, the stock market etc., dwarfs any depreciation in an automobile. I look at a vehicle as a utilitarian tool not an 'investment.'

I don't worry about the depreciation of my clothing (no I don't high-priced buy designer stuff), my pots and pans, etc.

I buy a vehicle based on what the price is, what it can do for me, how comfortable it is, its reliability, longevity, etc., not resale value.

Is resale value a function of quality?
Maybe sometimes, but other times, maybe most of the resale price is a matter of the demand and supply and the whims of the human mind and fashion.

Entropy and inflation and depreciation are a norms in our world, and life is short, so I prioritize accordingly.

 

[chl]

Yes they are, and some folks have POINTED that out on my prior postings, they're still more reliable than "state" propaganda.

Or are they just as unreliable, in the opposite direction?

The truth is somewhere in the middle generally.

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