Why can’t electric cars be launched TODAY at their LATER heavily discounted price
It is fact that heavy discounting is a major factor for first-time electric vehicle (EV) buyers, but it acts as a double-edged sword.
While price cuts and incentives make EV ownership highly accessible for the patient EV buyer, aggressive, continuous discounting by manufacturers severely hurts resale value for the early ‘i want to to be first to own’ buyer.
The relationship between EV discounts and first-time buyers breaks down to why EVs often cost more upfront than comparable petrol cars.
Aggressive selling price wars between major EV brands help bridge this gap, allowing first-time buyers who are patient to enter the market without breaking the bank.
Heavy discounts reduce the perceived financial risk for the patient buyer after the EV is a year or so old in the showroom.
For a first-time buyer worried about charging docks or battery life, a cheaper purchase price makes the transition feel more like a worthwhile experiment to try EV ownership.
Because EV technology is evolving so rapidly, a heavily discounted new model today can make slightly older models feel outdated quickly, however the battery and software technology difference might not be so far forward to bring in regret.
When auto manufacturers slash the retail price of new models, it directly crashes the resale value of existing cars. This is a major concern if you plan to upgrade or sell your car in 3 to 5 years.
Industry players in Malaysia warn that poor secondhand values and potential battery replacement costs act as hidden long-term financial risks for newer EV owners.
Take note, if you plan to drive the electric car for 6 to 8 years, heavy discounts should not be much of an issue. However, If you change cars every 3 to 4 years, the combination of aggressive new-car discounts and high depreciation rates means you will lose a significant chunk of your electric car value.
For car owners who prefer shower ownership period (3-4 years), leasing or buying a used EV might be a smarter financial move right now. Are you considering buying an EV as your first car, and how long do you typically plan to keep your vehicles before upgrading? That is the question only YOU can answer.
