[selcuka]

Yes, but there is no incentive for Person A to choose a brand new Corolla when it's $22K and the alternative is $15K. The value depreciation when they sell to person B will be lower than the Corolla, especially when factoring the fuel savings in.

[rayiner]

Why do you think there will be a lower value depreciation for a Chinese EV than a Toyota? Toyotas have insane resale value. We bought a 2012 Toyota 4Runner used for $30,000 in 2016. KBB on it now, at 12 years old and 130,000 miles, is still $15-18k.

[selcuka]

> Why do you think there will be a lower value depreciation for a Chinese EV than a Toyota?

Because it's cheaper to buy and cheaper to drive.

Let's start with your example (12 years, 130K miles, 50% depreciation). Let's assume that the EV depreciates much more (80%):

Corolla value depreciation = $11K

BYD Value depreciation: $12K

From a purely financial perspective, it doesn't mean to invest $22K instead of $15K for a $1K gain after 12 years.

Now the calculation above does not take the energy costs into account [1]:

Petrol cost @ 130K miles = $20K

Electric cost @ 130K miles = $4.5K

[1] https://avt.inl.gov/sites/default/files/pdf/fsev/costs.pdf

[0x3333]

Nailed it, that's the point. I don't know why people love cars that last forever, even if financially it doesn't make sense for the first owner.

[toomuchtodo]

Because they’re emotionally tied to the idea of longevity vs service life.

[lannisterstark]

>Yes, but there is no incentive for Person A to choose a brand new Corolla when it's $22K and the alternative is $15K

"Hey I know Corollas last a while, and wtf is this weird-ass company I've never heard of? I'm sticking with Toyota."

^ Incentive enough.

[kgabis]

In a few years it'll be like "Oh, it's BYD, they're everywhere right now, of course I'll buy it second hand".