Comment by loeg
5 hours ago
> The depreciation of electric vehicles has made me appreciate those circumstances more and more.
The depreciation for most EVs isn't all that different from that of new ICE vehicles. For a while, MSRPs were artificially inflated by the EV tax credit, which could give artificially worse depreciation appearance.
So now that the tax credits are gone we should expect to see the sticker prices on new EVs to drop right? Right? Any day now?
Yes. Ask Tesla owners who bought at certain times in the past just how much the loss of the tax credit can hurt resale value when the manufacturer adjusts the price to account for it.
Idk why you make it sound like a hypothetical lol, the tax cuts already expired and price cuts already happened. HMC dropped their prices by $7k+ right after the tax credit expired
Tax incidence is pretty much a solved concept.
This happened a few years ago, at least accounting for the dealer markups.
Hyundai and Kia did exactly that...