Advice - SUV EV without Huge Depreciation? (Does it exist?)
Discussion
I'm looking for some advice because I am going round in circles trying to sort a new/nearly new car for my wife.
Firstly - My options are quite narrow because she likes a higher driving position but won't drive anything particularly large.
Currently Drives a VW T-Cross which we bought brand new in 2021.
She only does around 3000miles/annum and over the last 10 years we've had x3 PCP deals and managed to build up quite a decent equity from one car to another (from nothing to around £8000 now). Fabia > Mini Countryman > T-Cross.
I've recently switched my company car to an EV, home charger installed etc and I've found it extremely convenient and cost effective (save at least £250/month on diesel).
I've somehow always managed to purchase wisely and end up with £2-3K of equity in every car we've purchased (and then sold after PCP term), we keep our cars mint and mileage is always very low. My concern this time round is if I put my equity/deposit into an EV now, in 3 or 4 years time we will be pretty much left with nothing.
The options I looked at:
1: BMW 2-Series Active Tourer 225xe (PHEV with around 50miles range) - discounted due to £640 Road Tax.
2: Volvo EX30 - Really like but concerned about depreciation.
3: Hyundai Kona EV - Not convinced on styling, also depreciation.
4: Mercedes EQA - Looked at 2022 model (already depreciated somewhat) - Car never scores very high, rear seating position awkward.
Also considered Cupra Born (Seat goes high but steering wheel doesn't), Smart #1 (Don't like styling), VW ID3 (same as Cupra and depreciation awful).
Also considered lease deals... however the upfront costs and monthly figures don't work.
Perhaps with higher interest rates, higher car prices, bigger depreciation...... Maybe the days of keeping equity in cars is long gone and I'm chasing a unicorn!
Any advice? (constructive)
Firstly - My options are quite narrow because she likes a higher driving position but won't drive anything particularly large.
Currently Drives a VW T-Cross which we bought brand new in 2021.
She only does around 3000miles/annum and over the last 10 years we've had x3 PCP deals and managed to build up quite a decent equity from one car to another (from nothing to around £8000 now). Fabia > Mini Countryman > T-Cross.
I've recently switched my company car to an EV, home charger installed etc and I've found it extremely convenient and cost effective (save at least £250/month on diesel).
I've somehow always managed to purchase wisely and end up with £2-3K of equity in every car we've purchased (and then sold after PCP term), we keep our cars mint and mileage is always very low. My concern this time round is if I put my equity/deposit into an EV now, in 3 or 4 years time we will be pretty much left with nothing.
The options I looked at:
1: BMW 2-Series Active Tourer 225xe (PHEV with around 50miles range) - discounted due to £640 Road Tax.
2: Volvo EX30 - Really like but concerned about depreciation.
3: Hyundai Kona EV - Not convinced on styling, also depreciation.
4: Mercedes EQA - Looked at 2022 model (already depreciated somewhat) - Car never scores very high, rear seating position awkward.
Also considered Cupra Born (Seat goes high but steering wheel doesn't), Smart #1 (Don't like styling), VW ID3 (same as Cupra and depreciation awful).
Also considered lease deals... however the upfront costs and monthly figures don't work.
Perhaps with higher interest rates, higher car prices, bigger depreciation...... Maybe the days of keeping equity in cars is long gone and I'm chasing a unicorn!
Any advice? (constructive)
Having you worked out if there is any fuel saving on only 3,000 miles a year?
When you say "build equity", are you sure it's that cost effective compared to cash? (not starting a PCP argument here). For starters I don't think there are 3k PCP deals so you're paying for miles never used presumably.
Avoiding initial EV or ICE depreciation (now quite similar) is achieved by buying at 2/3 years old. Something like a Megane e-tech is a great used buy with the 5 year warranty.
When you say "build equity", are you sure it's that cost effective compared to cash? (not starting a PCP argument here). For starters I don't think there are 3k PCP deals so you're paying for miles never used presumably.
Avoiding initial EV or ICE depreciation (now quite similar) is achieved by buying at 2/3 years old. Something like a Megane e-tech is a great used buy with the 5 year warranty.
Edited by nickfrog on Sunday 1st June 12:26
dmsims said:
Are you sure on the 225Xe ? I looked at a couple of 24 plate and it it says £195 tax
Why not keep the exisiting car ?
Budget ?
On AT it says £195 tax - but on DVLA or www.checkcardetails.co.uk - Both say the car incurs the Luxury car tax charge for the 5-years.Why not keep the exisiting car ?
Budget ?
Keeping Existing Car - Yep, definitely an option
Budget - £25-30K
nickfrog said:
Having you worked out if there is any fuel saving on only 3,000 miles a year?
When you say "build equity", are you sure it's that cost effective compared to cash? (not starting a PCP argument here). For starters I don't think there are 3k PCP deals so you're paying for miles never used presumably.
Avoiding initial EV or ICE depreciation is achieved by buying at 2 years old.
We would save at least £50/month on fuel so around £600/year using EV.When you say "build equity", are you sure it's that cost effective compared to cash? (not starting a PCP argument here). For starters I don't think there are 3k PCP deals so you're paying for miles never used presumably.
Avoiding initial EV or ICE depreciation is achieved by buying at 2 years old.
When I say build equity... I mean over the years we've always sold the car for more than the GFV thus we've taken money back out of the car and that's gone from £0 to £8K in last 10-years.
3000mile PCP's don't exist... we always put it on 6000 miles (usually lowest available)
Yep... that's why I started looking at Mercedes GLA around 2022 MY
Laney456 said:
My concern this time round is if I put my equity/deposit into an EV now, in 3 or 4 years time we will be pretty much left with nothing.)
This is correct. Personally I don’t see any point in having money locked up in a car on the driveway. Last year I sold my VW, banked the equity and went for a zero deposit PCP on a Honda EV. Very happy with that decision and after three years will just hand it back and the depreciation and negative equity will be Honda Finances problem. Mark V GTD said:
This is correct. Personally I don t see any point in having money locked up in a car on the driveway. Last year I sold my VW, banked the equity and went for a zero deposit PCP on a Honda EV. Very happy with that decision and after three years will just hand it back and the depreciation and negative equity will be Honda Finances problem.
I've always used the equity in the car to lower the monthly payments - I've never paid more than £200/month on any of my last 3 cars.Definitely something to think about though
Currently the best option looks like a ~2022 lowish mileage Mercedes EQA around the £22K Region (which will have taken the majority of its initial depreciation). If we keep the miles low... I can't see that dropping much below £15-16K in 3 years.
Looks like they have an 8yr warranty on the battery (if SOH falls below 70%) + things like a Heat Pump as standard.
Range on a 66.5kWh version is likely to be around 200miles (real world) (supposed to be 268)
Looks like they have an 8yr warranty on the battery (if SOH falls below 70%) + things like a Heat Pump as standard.
Range on a 66.5kWh version is likely to be around 200miles (real world) (supposed to be 268)
You are overthinking the equity element.
It's good to have equity in the car after the finance deal finishes, but it just means that you have paid more than required to have built up the equity in the first place. The equity is just your own money paid that you are getting back.
If you were to break even, with no equity, that just means that you have paid the exact required amount during the term.
It's good to have equity in the car after the finance deal finishes, but it just means that you have paid more than required to have built up the equity in the first place. The equity is just your own money paid that you are getting back.
If you were to break even, with no equity, that just means that you have paid the exact required amount during the term.
Mandat said:
It's good to have equity in the car after the finance deal finishes, but it just means that you have paid more than required to have built up the equity in the first place. The equity is just your own money paid that you are getting back.
Agree with that. If you're set on changing cars every 3yrs then lease should make better financial sense.Also agree with earlier comments that it makes little financial sense to have an EV for 3K miles. It does however make perfect sense to have a non-EV as a "back up".
Have you looked at the Skoda Elroq? It’s getting g very good reviews and would seem to be the right sort of size for you. Very fairly priced, compared to some cars out there.
Here’s a pre-reg I assume with 5 miles on it for under £30k and it’s got the largest battery and highest power motor (till the vRS turns up).
http://www.autotrader.co.uk/car-details/2025052929...
Here’s a pre-reg I assume with 5 miles on it for under £30k and it’s got the largest battery and highest power motor (till the vRS turns up).
http://www.autotrader.co.uk/car-details/2025052929...
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