25% of EV owners in America are underwater $10,000 USD on their loan

Every new car owner is 10K underwater the day they buy their cars.

Only underwater if you want to sell/trade your car. Solution: keep your car!

Buy the car for 10 years then dont worry about it. the people who replace cars ever 2 years are wealthy, they do not care what happens with resale value

This problem is not just EVs.

Depreciation is one of the largest expense for a car.

In the USA, I have seen very high depreciation on my used EV (2020 Kia Niro). Sticker price was $47K (I doubt anyone actually paid that, but...). I bought it used in November, 2023, for $28K, which was a competitive price at the time. So, that was about 60% depreciation in 3 years. Now, just 8 months later, I see the same car, same miles, for sale for $22K. That's a further 25% depreciation (roughly) in less than a year. I believe this may be because EV buyers tend to want the latest technology, and older cars are in much less demand. I really like my EV, and I have no plans to sell or trade. I just wish I had waited 6 more months!! :))

If you pay cash, you’re never underwater. The problem is the majority of consumers can’t afford a car. They can only afford a payment.

Because two years ago the demand for EVs was insane and they were absurdly priced.

I think if Hertz was paying attention and didn’t sell their Teslas in the same way that they sold internal combustion cars, they would’ve made money in the long run by keeping them twice as long as an ice car.

Anyone buying a new car should know that it will always become a depreciating asset. Truthfully, the most rational thing to do is to buy a used car in excellent condition. A new car is an indulgence that is done for the enjoyment of driving the latest and greatest.

Pay cash it can be done requires some planning. If you can pay $1000 a month for a new truck and never pay it off before it is wore out you can afford to pay cash.

I am an old guy, my whole life it has been true that when you drive off the dealer's lot the value of your new vehicle drops like a dead pigeon. I like new cars or other vehicles. A history of bad luck with used vehicles. Our current vehicles, 1991 Chevy long bed extended cab C2500 70k bought new, 2008 Buick Lucerne, bought new 120k, 2019 Buick Cascada bought new 18k. My Cascada cost over 32k, now worth maybe 16k, I don't care, I tend to keep vehicles for a long time.

The same thing happened with smartphones when they first came out. I remember people who bought the model 1 & 2 iPhones going through similar experiences. It's what always happens with the first releases of an innovative technology.

I bought a new to me 2020 Bolt LT WITH 26K a new battery, and tires. It was a buyback so it also has a 12/12 full warranty. Because of state and federal incentives my OTD price was 6.5K. Used EV’s are a bargain.

I think B T C and E T H are more likely to retest the resistance and then go down. But as always, things are changing day by day and all we can do is trade responsibly, monitor the markets and reevaluate our strategies often. I want to thank Randy Douglas for being my source of crypto education as I comfortably made 12.7 BTC.

Paid 54K for my m3 back in 2020. Be lucky to get half that today. Fortunately, I plan to keep the car until one of us dies!

I paid CASH for my 2023 Tesla Model Y Longe AWD on June 23, 2023 here in Los Angeles and the cost was $57,219.00 - I don't care if the value drops 95% tomorrow because it was never going to be an investment like buying GOLD which I have done over the past 3 years and have only gained from my investments. I fully enjoy my Tesla especially when I'm driving on the freeway at 115+ mph when it's safe and what a rush better then sex!

Thank you, Sam for all the wonderful podcast over the past few years. We have been generating more electricity than we use for 24 years and I couldn’t say that my electricity is free. We have upgraded several times over those years and increased our consumption including with EV’s. Our system is paid off, but if one amortized the cost, it would not be free electricity, though it gets better every year.

This is a sad story and a good story at the same time.

Here is something else in this thought exercise... How much did the owner of the EV save on fuel costs compared to the depreciation? The vast majority of EV owners charge their vehicles at home where the electricity is very cheap compared to dino juice. That saving never stops! The longer you own the EV the greater the savings on your EV compared to ICE. I'm never going back and saving year over year...