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.

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.

> 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

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.

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

>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.

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".

I bought a 2002 Corolla in 2011, gave it to a relative in 2019, who recently sold it for more than half what I paid 12 years prior.

Not 500k km but past 300k ie your point is spot on

In my circle of friends/family/neighbors/acquaintances, it's common to have a vehicle over 200k miles. Over 300k is noteworthy but not unheard of. Both of my cars are over 275k (bought them a little before the 250k mark).

One guy I see regularly is driving a 400k mile minivan. At my previous job I saw a customer driving a 500k mile Corolla, as well as a couple of customers with 400k, and countless over 200k.

This is in Kansas.

My 2004 Ford Mustang had 382k miles. This is the best picture I have (did you know that Google Photos can search for "odometer"??)

https://photos.app.goo.gl/rKMXEzRkR7NauPaB9

I received the car at about 370k miles, drove it about 10k more for ~2 years in college. The only problem I ever had with it was the battery sucked in the winter.

I think they are talking kilometers

I have a '97 Jeep XJ at ~214,000 miles. They do exist :)

Hasn't rusted through?

Nope. That's mostly (I guess?) an issue in places with a lot of winter months that use salt on the roads instead of sand. It's had a bit of rust, but nothing a buzzbox welder and some steel sheets couldn't patch.