BVRLA warns of coming EV residual value storm

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

I’ve been warning about this for a long time:

The FleetNews report referred to is here.

As the report points out, leasing companies have managed to cope so far because they are only dealing with a small number of end of lease cars at the moment – cars originally leased three years ago when EV sales were much lower. Losses on those can easily be contained within the profits made from reselling petrol/diesel cars.

But soon they will be dealing with much greater volumes of EVs, along with lower volumes of profitable ICE cars.

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gDavid
January 21, 2025 2:08 am

MGUY, it’s good to see you on Watts Up With That. When I go to YouTube, I always look first for your post of the day because you make me laugh at the foolishness of most Liberal politicians.

cwright
Reply to  gDavid
January 21, 2025 3:45 am

Me too!
Here’s MGUY’s latest post: https://www.youtube.com/watch?v=k2vSGll7mGA
Chris

Scissor
Reply to  cwright
January 21, 2025 4:29 am

Good video. He sums up the situation very well in about the first minute.

Bryan A
Reply to  Scissor
January 22, 2025 10:11 am

Yep…
Junk Cars aren’t worth much in the resale market.

Reply to  gDavid
January 21, 2025 4:56 am

MGUY’s channel is now one of my favorite.

Jeff Alberts
Reply to  gDavid
January 21, 2025 6:14 pm

Too bad he’s as narcississtic as everyone else on YouTube.

Bryan A
Reply to  Jeff Alberts
January 22, 2025 10:13 am

Hmmm
I don’t detect any hint of narcissism in his words. Are you looking in a mirror perhaps. Might be Psychological Projection

strativarius
January 21, 2025 2:58 am

Aside from the sheer expense and impracticality of EVs there is the growing subscription racket.

“BMW made the headlines earlier this week when its South Korean division launched several subscription plans. The most controversial of the lot was the heated front seats for an $18 monthly fee, joined by a heated steering wheel for $10. These create comforts are also available with an annual plan or a three-year subscription, with the possibility of buying outright.”
https://www.bmwblog.com/2022/07/12/bmw-subscriptions-launched-in-uk-with-more-options/

My vehicle (2017 Fiat Tipo) admittedly has an engine management system and diagnosing faults is usually performed by a laptop etc. But it doesn’t need ‘updates’ or patches or subscriptions. This means with a power loss I can still coast or move the vehicle out of the way. I can get it towed etc.

Once an EV conks out that’s where it stays and you need a flatbed truck to take it away…
 
Did I mention I can fill up, buy goodies and be on my way in 10 minutes?

The trend seems to be less mobility and less freedom.

Reply to  strativarius
January 21, 2025 3:59 am

My 1994 Volvo 850 has front seat heating as usual standard, as the heated wing mirrors too.

strativarius
Reply to  Krishna Gans
January 21, 2025 4:08 am

We should have seen this coming at some point. I recall in the 60s vehicles came in a range – standard, deluxe and/or super.

The standard lacked wing mirrors, radio etc. The more expensive super and deluxe versions did not…

Gregory Woods
Reply to  strativarius
January 21, 2025 6:31 am

When living in W, Germany long ago I had a stripped-down VW. Not even a gas gage. Had to watch the manual odometer,

Beta Blocker
Reply to  Gregory Woods
January 21, 2025 8:36 am

In the early 1960’s, our across-the-street neighbor had been in the US diplomatic corps and was assigned to the West German government in Bonn.

He bought a VW bug in Bonn to get himself and his family around while he was assigned there. He then had it shipped to the US at the end of his assignment.

It likewise had no gas guage. And its odometer read in klicks, not miles. When the requisite number of klicks appeared, he filled up the tank immediately.

He and his wife had the car until the mid-1960’s when it was replaced by a VW camper van. The bug was sold to a college student who could read an odometer scaled in klicks, not in miles.

jvcstone
Reply to  Beta Blocker
January 21, 2025 9:11 am

One of my early cars was a 57 karmin ghia. It too had no gas gauge, but did have a little flip leaver on the floor near the gas peddle that would release a small amount of emergency fuel– enough usually to get to the next filling station. The car was over 10 years when I bought it, and I was working on the cars third 100,000 miles when I sold it two years latter.

Reply to  strativarius
January 21, 2025 7:35 am

The top of the line large cars (American makes) had rocket fins! 🙂

Screenshot-2025-01-21-103451
Reply to  Joseph Zorzin
January 21, 2025 11:53 am

Those really stung when you walked backwards into one whilst hitchhiking.

Reply to  Joseph Zorzin
January 21, 2025 1:40 pm

Back when car designs were fun, not grey wedges.

Bryan A
Reply to  PariahDog
January 22, 2025 10:14 am

Or Egg mobiles

Reply to  strativarius
January 21, 2025 4:58 am

“Once an EV conks out that’s where it stays and you need a flatbed truck to take it away…”

wow, didn’t know about that

strativarius
Reply to  Joseph Zorzin
January 21, 2025 5:16 am

Can you tow an electric car?
Yes, you can tow an electric car, but not with a tow rope like you would use to tow a petrol car. To tow an electric car you need to use a flatbed tow truck or a trailer, to make sure that all the wheels are off the ground. 
https://electriccarguide.co.uk/can-you-tow-an-electric-car/

Scissor
Reply to  strativarius
January 21, 2025 7:21 am

Just give it a push and let the clutch out.

Reply to  Scissor
January 21, 2025 7:26 am

That used to work for me. 🙂

Scissor
Reply to  Tom Abbott
January 21, 2025 7:45 am

I never got the hang of it, but my older brother it seemed was always doing it.

KevinM
Reply to  strativarius
January 21, 2025 10:01 am

That definition of towing seems to preclude towing. “all the wheels are off the ground” is what most people would call carrying, not towing.

Bryan A
Reply to  KevinM
January 22, 2025 10:17 am

Yep towing an EV can be quite a drag

Sparta Nova 4
Reply to  Joseph Zorzin
January 21, 2025 11:54 am

There are dollies that can be put under the wheels, if the tow truck has them available.
If the EV wheels are “locked” due to battery depletion, pulling it up on a flatbed will be just as challenging and pulling it with a tow rope.

Reply to  strativarius
January 21, 2025 6:19 am

With this morning’s temperature of -18C/0F I gratefully acknowledge the usefulness of heated seats and steering wheel in my subscription-free car.

Reply to  Paul Hurley
January 21, 2025 7:37 am

it was -6 F here in north central Wokeachusetts

Reply to  Joseph Zorzin
January 21, 2025 8:43 am

Is that before or after the temperature adjustments?

Bryan A
Reply to  Joseph Zorzin
January 22, 2025 12:41 pm

Obviously the Disinformation temperature. The actual narrative approved temperature is 52°F

Reply to  Paul Hurley
January 21, 2025 8:43 am

With an EV, how much to heated seats cut into the range? Or the heater?

Trying to Play Nice
Reply to  More Soylent Green!
January 21, 2025 9:05 am

They tell you to use the heated seats instead of the heater. I had to do that once when my vents malfunctioned and I would never do it again.

KevinM
Reply to  Trying to Play Nice
January 21, 2025 10:04 am

Conduction>Convection>Radiation
except the physics lab heat transfer models suck when your but is sweaty while your nose is chilly.

Trying to Play Nice
Reply to  Paul Hurley
January 21, 2025 9:04 am

Can’t live without remote start from the key fob either. My friend bought a Hyundai and the remote start can only be done through an app and subscription.

Reply to  Trying to Play Nice
January 21, 2025 1:41 pm

This is why I will never willingly buy a car made after 2015.

Trying to Play Nice
Reply to  PariahDog
January 22, 2025 3:27 pm

I have a 2022 and 2024 (and just ordered a 2025) vehicle and they have no subscriptions other than satellite radio, which I pay for on purpose. I have heated and ventilated seats, remote start, nav system, etc. and pay nothing on a monthly basis.

Scissor
Reply to  strativarius
January 21, 2025 7:16 am
Reply to  strativarius
January 21, 2025 7:32 am

Subscription fees for something like heated front seats! That’s egregious.

Westfieldmike
January 21, 2025 3:05 am

I follow this man, he is very good.

January 21, 2025 3:38 am

Agreed, except the volume of profitable ICE vehicles won’t be *that* much lower (in the US) since over 90% of new vehicles sold are still ICE vehicles, and given the multitude of downsides to EVs, this will likely be more true in the future.

Idle Eric
Reply to  AGW is Not Science
January 21, 2025 4:05 am

The problem for the leasing companies is that the vast majority of that 90% is likely to be outright sales to the consumer, whereas the remaining 10% of BEV’s form a much higher proportion of the leasing market.

Thus, even if 90% of sales are ICE vehicles, it’s still possible for 90% of leases to be BEV’s.

strativarius
Reply to  Idle Eric
January 21, 2025 4:26 am

For the rental companies this is going to Hertz

Trying to Play Nice
Reply to  Idle Eric
January 21, 2025 9:14 am

About 25% of vehicles in the US are leased while in May 2024 EVs were 6.8% of the market and just under 50% of those EVs were leased. ICEVs are still a big part of the leasing industry (at least in the US).

KevinM
Reply to  Trying to Play Nice
January 21, 2025 10:06 am

Thanks, saved me a Googling

abolition man
January 21, 2025 7:34 am

So the EV mandates around the globe are likely to destroy the European auto industry, with residual blowback on British, Australian, and American companies! Meanwhile the Chinese auto makers are taking over the world, and the Russians are expanding their arms manufacturing, thanks to higher prices paid for their oil!
Maybe the global elites should stick to things they know; like child molestation and drunken hookups with high priced prostitutes in Davos!

TheImpaler
January 21, 2025 9:15 am

2020 Ford Edge Titanium with remote start, heated seats, mirrors, steering wheel came in very handy this morning at -12F actual temperature here in KC. I hate global warming…

KevinM
Reply to  TheImpaler
January 21, 2025 10:08 am

Perfect weather conditions to ask a friend, “would 2C warmer really be that bad?”

Bob
January 21, 2025 12:53 pm

More good news. Things like this are bound to happen when corporations bed down with government.

Andrew Pierce
January 21, 2025 3:16 pm

The first time I ran into a dispicable pricing plan was a few years ago when looking at a new Ford Transit Connect. I was offered a model rated at a mere 70hp and was told that for an expensive premium I could get it increased to 90 hp. I was absolutely incensed that I would be offered a knowingly underpowered vehicle and then charged a premium for mapping it up to be able to safely overtake. I walked away and bought a second hand van.

Rahx360
January 22, 2025 2:09 am

In Belgium company cars are mandated to be EV. They drive most of the sales. These are leasing cars and in the next 2-3 years they’ll be end of contract and there’re no private buyers. It’s another upcoming disaster. Most likely all those EV’s will be recycled, talk about being green.What’s the other option? They might sell them at a huge loss, when being really cheap this might pull in some new private buyers.

The EU bureaucracy has destroyed the car industry. When forcing unrealistic tailpipe emissions, VW even had to cheat, with other technology nobody asked the car manufactures spend all time and money on those regulations and mandates. China invested its time and money on building better and cheaper cars. Same reason why Tesla can build an EV with profit, they also invested in building processes to make it cheaper. I’m sure that instead of trying to get emissions down they could have invested in building better engines which would be cleaner anyway. That’s just my take on it.