Image Name: The Lucid Air
Lucid Motors might seem like a new name within the automotive industry, but the American car company has been around since 2007. While brands like Tesla and Rivian have established themselves in the luxury electric vehicle (EV) market, Lucid Motors pushes the boundaries of design and technology in this area. The electric automotive industry thrives on innovation, and Lucid Motors is a prime example of this trend.
Electric vehicles are a hot topic, often sparking debates and stereotypes. One common stereotype is that EVs depreciate faster than traditional gasoline-powered vehicles. While this is true for some models, it isn’t a universal rule. Lucid Motors, although not new, only began delivering its first car, the Lucid Air, in 2022. Given Lucid Air’s recent market entry, there’s still a lot to learn about its long-term value retention.
The Lucid Air Loses Half Of Its Value After Two Years
Luxury vehicles often carry high costs even after purchase, but this isn’t always the case today. You might wonder whether the Lucid Air holds its value or depreciates significantly. Lucid offers the Air in four trims, ranging from $69,900 to $249,000. For example, the base model starts at $71,400, and after two years, you could sell it for around $35,700, marking a fifty percent depreciation.
The Lucid Air Depreciates Faster Than The Average Luxury Electric Car
A fifty percent depreciation in two years might seem steep but is not unusual in the automotive world. New cars typically lose at least ten percent of their value as soon as they leave the dealership lot and continue to depreciate at about twenty percent per year. Factors like brand, car type (EV, HEV, non-electric), and market conditions influence depreciation rates. According to iSeeCars, a new Lucid Air depreciates by 52.9 percent after three years, which is faster than the average luxury electric midsize vehicle’s depreciation rate of 37.5 percent. However, after five years, the Lucid Air’s depreciation rate aligns more closely with other luxury midsize EVs.
Out-of-Pocket Expenses and Ownership Costs
Ownership costs for the Lucid Air include some hefty prices, but they are average compared to other vehicles. After five years, you can expect to pay around $3,115 in maintenance fees, which is below the average for all cars. Contrary to the stereotype, electric vehicles are not necessarily more expensive to own than gasoline-powered ones. The average annual cost of owning an EV is $8,320, which is comparable to or lower than the costs of owning SUVs, trucks, and medium sedans. Thus, while the Lucid Air does incur significant expenses over five years, these costs are similar to those of traditional vehicles.
Buying A Lucid Air New Vs. Used
When evaluating Lucid Air’s depreciation, it’s clear that used models currently on the market are significantly discounted. A quick search on websites like Cars.com or Edmunds reveals that 2022 and 2023 models with less than 15,000 miles are selling for around fifty thousand dollars. Electric vehicles have shown large price drops due to factors like high demand for hybrids, redesigns of older models, and economic conditions. Ultimately, the decision to buy a new or used Lucid Air depends on whether you prefer to avoid the initial depreciation hit or take advantage of lower prices for used models.
Image Name: The Lucid Air’s Configurations
The Lucid Air’s Different Configurations
The Lucid Air is available in four trims, each offering unique features. The base trim, the Pure, produces 430 horsepower and has a range of 420 miles. The Touring trim adds more standard features and performance enhancements. The Grand Touring trim, starting at $110,900, is ideal for many buyers due to its excellent performance, range, and charging times, boasting 512 miles of range and 819 horsepower. The top-tier Sapphire model, priced at $249,000, offers an astonishing 1,234 horsepower, catering to those seeking the ultimate in power and features. Your choice of trim will depend on your personal preferences and budget.
The Lucid Air Is Still Relatively New To The Automotive World
It’s important to remember that Lucid Motors is a relatively new player in the electric automotive industry. New businesses or product lines often face initial challenges and expenses. Despite being a young model, Lucid Air has shown promising performance and value retention. The common advice to avoid first-generation models doesn’t necessarily apply here, as the Lucid Air has proven to be a viable option from the outset.
New Cars Depreciate Faster Than Used Cars
Typically, new cars depreciate faster than used cars. A significant factor is that depreciation slows down after the first three years of ownership. The Lucid Air, for instance, experiences rapid depreciation initially but slows down towards the middle years of ownership. Factors influencing a car’s value include initial depreciation upon driving off the lot and later factors like maintenance and potential collisions.
Many Factors Affect A Car’s Depreciation
Depreciation in the automotive industry depends on various factors such as condition, mileage, age, demand, and economic conditions. While there are no definitive answers, research and data provide useful insights. The Lucid Air, as a luxury electric vehicle, will incur some expenses over the years, whether in purchase price or ownership costs. However, EVs have debunked many stereotypes, showing they can be as affordable or even cheaper to maintain than gasoline-powered cars.
In conclusion, if you’re considering a new Lucid Air, be prepared for it to lose about half of its value within the first two years, with depreciation slowing down thereafter. This is typical for new cars, especially in the luxury electric vehicle segment. The Lucid Air offers competitive performance and features, making it a strong contender in the EV market despite its depreciation rates. Whether you choose to buy new or used, understanding these factors can help you make an informed decision.
