Your questions answered: If I buy an EV will it be worthless in a few years?

Strap yourself in for some serious variety in the carsales mailbox this week.

We kick off with one reader enquiring about a topic hot on the minds of those considering EVs – and those who love to hate them. Resale.

We’ve also got someone looking for a 4x4 tow vehicle, with two Toyotas on the shortlist.

Another is considering their first plug-in hybrid electric vehicle (PHEV), while someone else is considering the purchase of a grey-import Mercedes-Benz hybrid limousine.

Yep, it’s all about variety!

Question:

Answer: You’re definitely not going crazy, but it’s also not time to panic. As far as mainstream cars go, EV is still fairly fresh tech – and it’s moving quickly. That’s one reason residuals on some models – especially high-end cars and cheaper, less desirable ones – are struggling.

There are also still a lot of unknowns and plenty of people who are wary of the tech.

As with the 20-plus-year evolution of hybrids – which once performed poorly on the used car market but are now sought-after – expect that to change over time. The used car market is a relatively simple beast and works purely on supply and demand.

If more people want a particular make and model, prices will be strong or increase. If there aren’t many buyers then the best way to lure them in is by lowering the price. Ultimately, every car has a value to someone and we’d expect prices to stabilise.

If prices drop much further then we’d expect used car buyers to start snapping up some bargains.

Imagine if someone advertised a near-new Polestar, Hyundai or Kia for, say, $20,000, we’d reckon it’d be snapped up in minutes, possibly seconds. But if someone put a crazy price on it, they’d likely never sell it. The fair price is somewhere in the middle – and the market will decide it.

There will always be someone ready to snap it up at the right price.

So, if you’re in the market for an EV, expect it to depreciate; that’s what happens to new cars.

Remember that your running costs will almost certainly be lower than an equivalent petrol or diesel car. And try to minimise your losses by buying sensibly.

Also remember that the used car market is fluid. If fuel prices soar, for example, EVs may suddenly become a lot more appealing. Equally, if fuel prices drop then cars powered by fossil fuel could undergo a mini resurgence.

Question: Which electric cars have been designed from the ground up as pure battery-electric? Not petrol cars that are also electric, with compromised space and weight. Tesla seems to be the outstanding one; is the new Toyota/Subaru or top-of-the-line Kia and Hyundai, etc? It seems they are least compromised, although more expensive. – David

Answer: There’s a mix of EVs designed from the ground up to be EVs. As you point out, the Tesla Model 3 and Model Y are among them, but so are the likes of the Hyundai IONIQ 5 and 6, Kia EV6 and EV9, Porsche Taycan, Audi e-tron GT, MG4, BYD Atto 3 and Seal and upcoming Volvo EX30, Polestar 3 and 4 and Volkswagen ID.4 and ID.5.

The Toyota bZ4X and Subaru Solterra (both identical beneath the skin) were also created as EVs.

That said, there are also plenty adapted from ICE platforms, including the Polestar 2, Volvo XC40, Kia Niro, Hyundai Kona and BMW iX1 and iX3.

Often an easy way to pick it is having a look inside. EVs created from the ground up as an EV usually have generous occupant space and a flat or near-flat floor in the rear, rather than getting a transmission tunnel fouling foot space for the middle occupant.

That said, some are also getting clever at masking that in ICE-converted EVs.

On the point of price, often those ground-up EVs tend to be more sharply priced because they don’t have the compromises of converting an architecture designed to do something very different.

Tesla is perhaps the best example of that; sure, the prices are expensive, but they often undercut similarly-sized prestige offerings powered by petrol.

Question: We have recently become single car owners and have an Isuzu MU-X and caravan, so now need a town car capable of going from Wollongong to Canberra and back once a month (we have a dog so can’t stay overnight with the EV but can with the caravan at a van park). So the question is: What would be a suitable EV for such use? (We did have a RAV4 hybrid and loved it, but it was replaced by the MU-X.) – Joe

Answer: A great starting point is the MG4, which does a lot right in an affordable package and was awarded carsales’ Car of the Year 2023. There’s only 350km of WLTP range in the base car, but other models come with bigger batteries.

Otherwise, you could check out the BYD Atto 3, which continues to lead the way in the affordable electric SUV category. If you can stretch the budget to a Tesla Model 3 you’ll be getting an all-round better car that allows you to tap into the vast Tesla charging network.

Question: My wife and I are in the transition to retirement and will be purchasing a plug-in hybrid SUV. We both have a vehicle from new – my wife has lovingly owned a 2002 RAV4 Edge and we want an SUV of the same size; initially had our hopes on the latest RAV4 Hybrid but it is a bit too big and doesn’t have a plug-in option. We have now focused our sights on either a Ford Escape ST-Line PHEV SUV or an MG HS Plus Excite PHEV SUV and would greatly appreciate your opinion on each.

Also your opinion on the gearbox comparison of the Escape one-speed gearbox and the MG 10-speed gearbox. – John and Kath

Answer: I’m not a big one for plug-in hybrids due to the compromises in terms of efficiency, purchase price and performance when running in EV mode. If you’re buying second-hand then the purchase price issue is partially sorted out.

Still, in short, every PHEV we’ve driven to date is not as good as a regular non-plug-in hybrid when running in hybrid mode and not as good as an EV when running in electric-only mode.

But, assuming you’re hellbent on a PHEV, then the Ford Escape was one of the better options in the mainstream SUV category. It’s certainly a better bet than the MG HS, which is showing its age.

It’s also worth casting your eye over the Mitsubishi Outlander PHEV, which is all-wheel drive (the Ford is only front-wheel drive). Otherwise let us know if we can get you into an EV!

Question: I am a commercial fisherman so tow a lot of boats and am around salt water frequently. I want to buy a new 4WD and would value your opinion on the Toyota LandCruiser 70 Series with HiLux motor/six-speed gearbox or HiLux hybrid models.

Would they suit my needs? Which is better? Are they the best value for work and durability or do you favour another 4WD for my purposes? I would want a dual-cab ute. – Kel

Answer: The updated Toyota LandCruiser 70 Series with the four-cylinder engine mounts a convincing case over the slower V8 (yep, we know, it doesn’t make sense!). But the 70 is still a very, very basic machine that is more about rough road driving than pampering.

The latest HiLux gets the same engine in a more comfortable vehicle with more tech, albeit one that still has lashings of ute chunkiness. Interesting you call it a hybrid because Toyota is not using the H word anywhere in its marketing and communication. That’s because it’s very mild assistance through that electric motor.

Think mild-hybrid at best, but Toyota ain’t going there because it’s trying to protect the couple of decades of marketing muscle it’s pumped into real hybrids.

As for which is best, the HiLux makes most sense once you look at the price tags.

In regards to the salt water, obviously no car is a big fan of it, so we’d recommend regular cleaning underneath. And don’t rule out other ute alternatives to the HiLux, either.

The latest Ford Ranger leads the way and we’re expecting a new HiLux in 2025.

Question:

Answer: Any decade-old German limousine has the potential to be very expensive if things start going wrong. And there was plenty to go wrong; the S Class has long been Mercedes-Benz’s tech leader with the latest gizmos and gadgets.

So, while Mercedes-Benz quality is generally excellent, make sure you go in ‘eyes wide open’, knowing there’s potential for big bills.

That is amplified with a private import, which won’t necessarily be supported by the local dealer network. That could make finding parts trickier, given the hybrid S-Class was never officially sold through Mercedes-Benz dealerships.

Also check out the insurance issue because some insurers may charge extra for privately imported cars.

So, short story is it’s the sort of car you need to do plenty of homework on.

If you find a good one – and most are fairly affordable these days – then it could reward you with lashings of luxury. But beware the potential pitfalls.

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