The Barefoot Investor Scott Pape has delivered a warning over buying an electric vehicle (EV) as popular provider BYD records its best-ever month of sales in Australia. The Chinese brand now sells more cars in Australia than Tesla and has beaten out the likes of Kia and Mitsubishi.
Pape’s warning was sparked by his father buying a new car and him suggesting that he should look at buying a Tesla Model Y. But his dad wasn’t a fan of the suggestion and pointed out practical concerns with buying an electric car, including where he would charge it, how much it would cost to fix and what it would be worth in a few years.
Pape said cars had “always been a terrible investment” and “EVs just let you feel morally superior while you do it”. Cars are a depreciating asset, meaning they decline in value over time.
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With cheap electric cars from China flooding the market, Pape said prices were only going one way.
“In China, BYD — the world’s biggest EV maker – recently slashed its local car prices by 34 per cent overnight,” Pape wrote in his weekly column.
“I grew up choosing between a Ford or a Holden (OK, and Toyota and Mazda). I’m convinced that, for my kids, cars will be like shopping for a TV at JB Hi-Fi: lots of weird-sounding Chinese brand names that get better and cheaper every year.
“In other words, it’s an electric race to the bottom … with no one at the wheel.”
The cheapest EV for sale in Australia is the BYD Dolphin Essential, according to RACV, which is available from $32,138 driveaway.
The GWM Ora is in second place with a driveaway price of $33,990, followed by the MG4 51hWh Excite with a list price of $36,990 driveway.
Recent research from NRMA found the key reasons Aussies lacked confidence in EVs included doubts over owners’ ability to find qualified EV technicians and concerns about the viability and safety of second-hand EV parts.
BYD recorded its best month of sales in Australia in June with more than 8,000 vehicles delivered, a 368 per cent increase from the same month last year.
This put it behind Toyota (20,225), Ford (10,103), Mazda (9,405) and Hyundai (8,407), but ahead of Kia (7,810), GWM (5,464) and Mitsubishi (5,336).
Driving BYD’s growth is the launch of the BYD Shark, which has become one of the best-selling utes in the country behind the Ford Ranger and Toyota HiLux.
The car retails for $57,900 before on-road costs, with Federal Chamber of Automotive Industries data revealing it was snapped up by nearly 3,000 motorists in June, representing more than double its sales in May.
“With each month, you can see just how popular BYD vehicles are becoming in Australia because you can see them on our roads,” BYD chief operating officer Stephen Collins said.
“As we continue the transition to a fully-factory backed operation, we commend the foundation laid by our distribution partners as we strive to ensure this strong growth continues.”
Electric vehicles and plug-in hybrids now account for nearly 10 per cent of new Australian car sales.
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