MG4 Depreciation

[EX MG Owner]

My ZS lost just under 50% of its value in 12 months from November 2022 to 2023. The only advice I would give would be not to buy new however as others have said our loss / my loss is now a gain for others as the same car new now is considerably cheaper. I’ve never leased a car myself but seeing some of the guaranteed values people have been quoted I imagine some of these lease companies are going to be losing a lot of money when the car is returned 3 or 4 years later….gulp.

 

[Tig170]

I traded in my Kia Soul 30kwh EV against the MG4. Bought from same dealer. Paid £17k for the Soul, trade in value £6.5k after 4 years. They've got it up at £11k ( vgc) ?.
I track my car values with 'we buy any car'. They were showing the Soul at £6.3k.
Thought I'd check the MG4 on we buy any car. SE LR, brand new. RRP £29495. Deal price £24k. 2 weeks in we buy any car price £18k. Now THAT'S depreciation!! ?.
Still, there was a point shortly after we bought the Soul that we buy any car were offering £21k ( covid & scarcity ?) . ?

I did note that EVM was quoting £21.9k for a (near?) new MG4 SE SR in recent days:-

 

[Tig170]

My ZS lost just under 50% of its value in 12 months from November 2022 to 2023. The only advise I would give would be not to buy new however as others have said our loss / my loss is now a gain for others as the same car new now is considerably cheaper. I’ve never leased a car myself but seeing some of the guaranteed values people have been quoted I imagine some of these lease companies are going to be losing a lot of money when the car is returned 3 or 4 years later….gulp.

Some lease companies don't pay VAT on purchase price + manufacturer discounts means that a £30k car new costs them, ~£20-23?k, so add on the lease payments that they receive = they are not going to be losing much money.

 

[JonnyG]

Never really contemplated a lease deal for an X Power. But there seem to be some good ones about. For example.
New Volcano Orange X Power.
24 month contract.
9 month payment = £2671.65
23 x monthly payments = £296. 85
Fees = £299.99
Total cost = £9799.19
I'd then sell my car for about £6000
Or I've spotted this.
73 reg Volcano Orange X Power £28999
Milage 2000. 4 months old.
Presume PX value for my car. £6000
Balance £22.999. Cash payment.
Must admit the lease deal does sound good. But I do like modding me cars, which you can't do with a lease car.
Mmmm, a bit of a quandary. ??
I know it's my decision at the end of the day, but what's your thoughts.

Personal Leases are great for peace of mind about depreciation and they will also pay full vehicle tax throughout the lease. At times like now (when new car sales are hard) there are some terrific lease deals about which just can't be beaten by PCP ./ outright purchase IMHO) . And remember with a lease you can invest the cost of the car (assuming you already have the cash to buy) and earn 5% interest a year on that.

The downside is you can't mod it too much and it needs to be serviced on time and kept in good condition (although BRVLA Wear & Tear Guides allow quite a lot).

I've leased since 2015 and never had any problems but you are bound by the lease term so not as easy to get out of as owning yourself should your circumstances change.

 

[Tuareg]

With an ICE there is also much higher service costs plus consumables such as oils, filters etc. Plus of course cost of fuel and if you have a PV system you can effectively run the car for zero cost fuel wise. In the case of the Xpower, how much would premium fuel cost for a 430hp ICE car? How much would premium oil cost and the service for such a car?

 

[EX MG Owner]

Some lease companies don't pay VAT on purchase price + manufacturer discounts means that a £30k car new costs them, ~£20-23?k, so add on the lease payments that they receive = they are not going to be losing much money.

Ok interesting, my car sold for £19k after 12 months ( I was offered £16 from motorway),

Personal Leases are great for peace of mind about depreciation and they will also pay full vehicle tax throughout the lease. At times like now (when new car sales are hard) there are some terrific lease deals about which just can't be beaten by PCP ./ outright purchase IMHO) . And remember with a lease you can invest the cost of the car (assuming you already have the cash to buy) and earn 5% interest a year on that.

The downside is you can't mod it too much and it needs to be serviced on time and kept in good condition (although BRVLA Wear & Tear Guides allow quite a lot).

I've leased since 2015 and never had any problems but you are bound by the lease term so not as easy to get out of as owning yourself should your circumstances change.

Do you have to pay quite a large deposit too or is that not the case ? The main reasin I've never leased is that when I sell a car , I use the profit (if there is any) in the sale to put down as the next deposit, in most cases that's worked for me.

 

[salty]

Out of curiosity, when the 24 months lease agreement is over, what does the lease company do with the car? Lease it again or sell it? I presume they will only get the current market value at the time. So could I buy it off them? Save them selling it. Particularly in my case the car will still be immaculate. If I've liked the car, I would willingly buy it. ??

 

[Expat Ever]

I have a slightly different take on this. I live in Thailand, bought my MG4 Model X (Trophy equivalent) 13 months ago and love driving it every time I get on the road, despite having driven most BEVs available here and owning a BYD Dolphin as a second car. The MG cost 869,000 THB (about £19k depending on what day it is) and, as with most EVs that included a "Promotional Package" of a year's insurance, roadside assistance, servicing etc. I've no intention of selling it and as one who's been into computers and photography for 50 years or more, I'm long resigned to seeing last week's/month's/year's cutting edge Must Have quickly eclipsed by developing technology and market trends.
All that said, I was surprised and not a little disappointed today to see MG showing the exact same car as mine in a shopping centre at 689,000 THB - just north of 20% less than a year ago which undermines its value not only for owners like me who have had a decent period of use out of it, but a significant number of customers with cars not yet out of warranty. Were I amongst them, I'd feel cheated; as it is I'll keep enjoying mine.

 

[stouens]

My MG4 EV Trophy is in showroom condition. I bought it in June 2023 for £32,000.
It has done 3500 miles and was valued by my MG dealer at £19,000!
Unacceptable depreciation

 

[Jomarkh]

Did you get that as part exchange for a newer model? £19K or £21?

 

[NLMGSAN]

What I heard here was that they simply do not sell second hand. And newly sold numbers are dropping as well. The MG4 seems to have developed 'a poor reputation'. Even if 80% is enjoying their MG4...

 

[MickeySw]

My MG4 EV Trophy is in showroom condition. I bought it in June 2023 for £32,000.
It has done 3500 miles and was valued by my MG dealer at £19,000!
Unacceptable depreciation

Curious, in your view what would have been an acceptable depreciation in the current climate of oversupply and dwindling demand?

 

[pjmmk]

Unacceptable depreciation

I think that's par for the course for an EV.

Rightly or wrongly, most people wouldn't consider an EV as a good second hand car. The media has done a pretty poor job of explaining the far better battery tech on modern EV's. I think the early EV's with their battery issues have scared a lot of people off.

Personally I wouldn't buy one second hand EV again, I did it once with a LEAF and it was not a great experience. Unscrupulous people can use diagnostic tools to reset the cars computers so you have no idea how well the previous owner has looked after the battery and that matters, a lot, for the early EV's at least.

Plus the government has removed nearly all 'incentives' to buying/owning an EV and even taking into account the depreciation, even the second hand ones are still too expensive for a lot of people.

 

[MickeySw]

The media has done a pretty poor job of explaining the far better battery tech on modern EV's.

I think it’s the opposite, there is so much hype about ground breaking improvements using solid state batteries that many are holding off buying a new (old tech) EV for now.

Personally I wouldn't buy one second hand EV again…

If you’re looking to switch now, one can get a 1-2 year old high spec EV for a song and a dance as long as you accept that its value will tank again once the new technology becomes the norm..

 

[tsedge]

My MG4 EV Trophy is in showroom condition. I bought it in June 2023 for £32,000.
It has done 3500 miles and was valued by my MG dealer at £19,000!
Unacceptable depreciation

Cars depreciate heavily as soon as you drive them off the forecourt. First year depreciation is typically 15-25%, so your car wouldn't be likely to be worth more than £24-25k or so.

Then a dealer won't offer you the best price because they will need to make a profit on the sale, covering their marketing and other costs and VAT on any profit. So they will offer you well below the £24k they might retail the car at, to make it worth their while, so they will offer maybe £20-21k at best, less if they don't particularly want to buy used stock.

Then, as others have said, we are also in a higher-than-usual depreciation period with an oversupply of new EVs which is depressing new and used prices.

A private sale is the way to get the best price on a nearly new car.

Why do you want to sell it?

 

[Johnny boy]

My MG4 EV Trophy is in showroom condition. I bought it in June 2023 for £32,000.
It has done 3500 miles and was valued by my MG dealer at £19,000!
Unacceptable depreciation

Wow
That is exactly the price I was given with the same mileage

 

[JonnyG]

My MG4 EV Trophy is in showroom condition. I bought it in June 2023 for £32,000.
It has done 3500 miles and was valued by my MG dealer at £19,000!
Unacceptable depreciation

.. it's not just an MG4 thing ??

 

[Montego]

I paid £32,040 for my Trophy delivered in March 2023. BUT the invoice breaks this down:

• the cost of the car, £26,365.42
• delivery charge, £ 288.75
• VAT @ 20%, £ 5,330.83
• registration fee, £ 55.00

Your depreciation needs to be based on the cost of the car, not the delivery charge, VAT or registration fee.

Also, I sold my previous car on Motorway. Got far more for it than expected. More than the dealer and we buy any . . offered.

Hope that helps.
Cheers

 

[Tangoed Man]

My MG4 EV Trophy is in showroom condition. I bought it in June 2023 for £32,000.
It has done 3500 miles and was valued by my MG dealer at £19,000!
Unacceptable depreciation

Yes, £3.71 per mile is an absurd amount of depreciation, even for the first year of a (relatively) inexpensive car. It tends to take the shine off any sense of saving money on not having to buy diesel or petrol.

 

[Montego]

Yes, £3.71 per mile is an absurd amount of depreciation, even for the first year of a (relatively) inexpensive car. It tends to take the shine off any sense of saving money on not having to buy diesel or petrol.

See my previous comment. I calculate 2.10 per mile, and far lower environmental impact!