Your questions answered: Do we really need more car brands?

Well, carsales readers are definitely keeping up with the news, as our mailbox shows this week.

The imminent arrival of a dozen new Chinese brands, as detailed in our recent article, has kickstarted questions about who, what, when, how and why. It’ll no doubt be one of the hot topics as the EV revolution builds.

We’ve also got readers interested in the just-arrived Volvo EX30, one of the more interesting new premium EV arrivals recently.

Plus, one reader wants to know about the viability of replacing EV batteries while another is chasing a small EV for zipping around town.

Question: I see that we’re due to get a whole bunch more brands, most of them from China. Surely there are already enough new brands on sale in Australia? – Angela

Answer: It’s called competition. The Australian Competition and Consumer Commission (ACCC) must be loving it! Chinese car brands – of which there are upwards of 100 – are fast looking beyond their domestic market in an effort to gain a foothold globally.

The reality is the Australian market is appealing due to its lack of trade barriers, something that is starting to bite Chinese brands in parts of the world where those countries are keen to protect their own local manufacturing industries.

So, no, you could argue we don’t need more brands.

But, equally, you don’t want brands thinking they’re safe. You’d rather have competition, which will hopefully lead to better vehicles from the legacy brands.

It will also mean more choice – and, inevitably, some tempting alternatives – from the newcomers.

Throw in the EV transition and it makes it an exciting time for the new-car industry.

Question:

Answer: The current Toyota HiLux has just received a minor update and is still a solid choice, but its strengths are its reliability and durability.

As it approaches its 10th birthday (the current-generation HiLux hit the market in 2015), it’s still feeling undernourished against fresher rivals, especially on tech and driving manners.

The winner on that front is the Ford Ranger and the related Volkswagen Amarok (which these days emerges from a Ford factory and uses Ranger underpinnings). Each has class-leading safety systems and infotainment technology. The Ford slides marginally ahead because it has remote connectivity via an app, something the Amarok doesn’t yet get.

But, really, for deciding between the two the biggest differentiator will be the price and features. The entry-level Amarok Core now comes with a trailer brake controller and wireless phone charging, for example, two things that aren’t fitted to the equivalent Ranger XL.

And, obviously, there are styling differences between the two.

Either way, pick the models you like and crunch the best deals you can to sway you one way or the other.

Question: I’ve been looking at buying an electric car but am worried about all the headlines I’m reading about EVs not being worth much when you go to sell them? What’s going on and should I be concerned? – Maryellen

Answer: There are a few factors impacting the prices of electric cars on the used car market. Perhaps the biggest influencer is that the prices of new EVs have been going down as competition ramps up and manufacturers fight for customers.

Also, the tech is still fresh and advancing very quickly. So new or updated models tend to be a fair bit better (in range, performance, value, etc) than the outgoing model.

There are also tempting incentives for EVs, most of which are being snapped up by those shopping new.

And because the tech is still new it tends to appeal to early adopters and those who want the latest and greatest, so they’d prefer to buy new.

As for what will happen in future, no one knows for sure. But the experts at RedBook are forecasting EV residuals to remain soft in the shorter term, as they did for hybrid in the early stages of that tech.

There’s one easy solution to it: Buy a second-hand EV. There are thousands currently for sale, some of them at sharp prices. By buying a used EV you’re side-stepping that initial depreciation hit.

Question:

Answer: Sounds like your friends have a very powerful crystal ball! The reality is no one knows what used car values will do in future because there are so many variables.

EV residuals have struggled in the past six months or so for various reasons, all of which are likely to be sorted in time. Whether it will take a year, two years or five years, no one knows.

It’s also worth remembering that hybrids in their early existence were not exactly hot property on the used car market. Now they’re holding up brilliantly.

As for which of your two shortlisted cars to go for, the good news is that each is an excellent choice. But… choosing between the Volvo EX30 and Lexus LBX would have us pop the Volvo out in front.

Amplify that if you can fund it with a novated lease, in turn leveraging the government’s fringe benefits tax expectation. Also remember the Volvo should be cheaper to run, especially if you can do most of your charging at home.

That said, the LBX is also a great small SUV, although “small” is very much the word. The back seat is a pretty tight space.

Question: I would like to buy a small EV car for driving around Sydney. Can you recommend a few different ones? It would need to be four-door and fit a walking frame in the boot space folded up for my elderly father. I was looking at Volvo EX30. It’s quite expensive. Are there any others of that size a bit cheaper? Would you recommend that Volvo model. Do you think any other types are on the verge of entering the market? – Diane

Answer: The Volvo EX30 is a great place to start. And while you’re in the showroom, check out the Volvo XC40 Pure Electric. It’s bigger than the EX30 but is also not as clever because it was adapted from a petrol-powered car, which always brings compromises (the EX30 was created from the ground up as an EV).

And, yes, there’s a heap more coming, the most compelling of which in the short term is the Kia EV5. It’s looking like being priced from about $60K and should be on sale by July.

There are also about a dozen newcomer brands with big aspirations of carving themselves a slice of the EV market.

If you want the best value, then Tesla nails it at the moment, dropping the price of both the Model 3 sedan and Model Y SUV again this week. They’re both great cars; the Model 3 drives better and has a subtly updated interior but the Model Y has more space.

Question: I was recently asked, “Is it possible to change the battery in a hybrid or EV?” I’d appreciate your answer to this question. – Peter

Answer: Anything is possible with enough money! And that’s the case with an EV battery.

With most covered by warranty for eight years, though, the only time they realistically should be replaced would be for a failure or manufacturing fault, in which case it shouldn’t cost a cent. Obviously, they can be damaged in a crash, but that’ll be up to your insurance company.

And for batteries outside of the warranty period, it likely won’t make sense to go replacing the battery pack due to the cost. In the same way an engine or gearbox is designed for the life of the vehicle with a combustion-engined car, an EV’s battery pack is designed to last the life of the vehicle.

And the economics of replacing it typically won’t add up.

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