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Just been trying to estimate 1st year depreciation on a REX. What car shows 53.5%. Seems high

Is this likely to be valid?
 

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Just been trying to estimate 1st year depreciation on a REX. What car shows 53.5%. Seems high

Is this likely to be valid?
Really hard to say. If you use other EVs as a reference, most are probably retaining less than 50% of new list price.
 

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All EVs suffer higher than average depreciation because of the rapid progress of electrical development, and the fear of being stranded with obsolete technology. However i3s are currently not susceptible to high discounts as with other EVs such as the Leaf. Year-old highly-specified examples of RExs are currently being offered for £30-32.5 K. Make of that what you will.
 

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How do they do that?
 

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BMW dealers are given incentives to buy used BMWs (not sure how much now and you know how complicated it gets, but it works out at a few thousand) and therefore will outbid normal dealers and joe public at the auctions or fleet disposal sales (since they can pay £20k for an £18K car and still turn a profit).

If you keep the residuals high on the ex-lease stuff that controls the rest of the market for you since the only other supply is private sales - and when the dealer will offer you more on Part-Ex than you get from a private sale, why would you bother?

Have a poke around on pistonheads for more details if you're keen ... here we go : http://www.pistonheads.com/gassing/topic.asp?t=1372989

Few comments in there which broadly hint at what's going on.
 

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Sounds somewhat dubious practice from an anti-trust/price-fixing point of view... Whatever, guaranteed trade-in price for an i3 REx on a 3-year PCP is about £15K
 

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However i3s are currently not susceptible to high discounts as with other EVs such as the Leaf. Year-old highly-specified examples of RExs are currently being offered for £30-32.5 K. Make of that what you will.
Lack of supply in the second hand market and a (six?) month waiting list new. With only 1 i3 Rex for sale on Autotrader second hand you are effectively paying a high price to jump the queue.

I remember tracking Ampera's / Volt's in Summer 2013 at the 1 year mark and even though several were available all where priced over £25k.

A year later with a lot of 2 year old leases expiring their prices had dropped as low as £16k. We picked up our 2012 Volt top spec with 15k miles for £17k.

Not sure what month this year the i3's hit the roads but I would guess it will be Q1 2016 before and big 2nd hand discounts are available as I doubt their will be a new waiting list of more than a month by then too, so you wouldn't pay almost new price for a 1 year old when you can get one quickly. This will then knock pricxes down on 2 year old models.

However as stated I think the I3-REX will probably hold it's price the best in this sector.

M
 

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Definitely not valid. There's no way you would be able to pick up a used i3 for £14k. Used values are remaining high because of lack of supply.
 

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Definitely not valid. There's no way you would be able to pick up a used i3 for £14k. Used values are remaining high because of lack of supply.
That's not how residuals are calculated though – the prediction is based on the likely offer from a trade buyer. With EVs, something of an unknown quantity for the risk-averse motor trade, the dealer margin would probably need to be north of £5k. Around £20k for an used i3 Rex is not out of the question.
 

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I think in the current market that £20k is out of the question. And I think most dealers will not operate on 25% margin.

Anyway, looks like depreciation is 50% over three years.
 

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I think in the current market that £20k is out of the question. And I think most dealers will not operate on 25% margin.

Anyway, looks like depreciation is 50% over three years.
Agreed. You will not see any major drop in 2nd hand values until the big new waiting list is reduced to the same time as buying a 1 series 118d, and much more supply comes on line from ex-demos, BMW staff cars , short lease expires etc. Luckily i'm not in the second hand market for an i3-REX until Q2 2017 so there will be pleanty of 18 month - 2 year old choice by then.

M
 

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That used price drop could accelerate fast if the BMW Eco interior brigade learn what happens to the Carbon fibre thermoset resin tub when it is at end of life;).
 

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BMW dealers are given incentives to buy used BMWs (not sure how much now and you know how complicated it gets, but it works out at a few thousand) and therefore will outbid normal dealers and joe public at the auctions or fleet disposal sales (since they can pay £20k for an £18K car and still turn a profit).

BMW North America has a Full Circle sales program that requires dealers to buy cars they originally sold. They are allowed a few mulligans per month. The rest of the cars end up on their used car lot.

While they may pay "too much" for many of the cars, BMW offers incentives to offset the price.


I'm not sure about the UK, but it is probably similar.


http://www.bimmerfest.com/forums/showthread.php?t=159178
http://www.bimmerfest.com/forums/showpost.php?p=5560549&postcount=8
 
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