This may come as a surprise to many of you who have for years been reading about my many old cars (my youngest is 29 years old), but I want to buy a new car. Maybe not a brand new one, but one from the last decade. I’ll get into the reasoning behind why I no longer want to solely drive old junkers, but it really doesn’t matter because I’m stuck. Logical or not, I feel that if I buy the EV I want today, it may be obsolete in a few years, and if I buy an ICE today, it may be…obsolete in a few years. Here, allow me to explain.
Here are the two cars I’m debating purchasing:
- A 2023 Jeep Wrangler JL Sport 6spd (a vehicle I helped engineer)
- A 2015 BMW i3 (also an engineering masterpiece)
I’m considering purchasing one of these machines because the 405 here in LA is a monster that swallows small old cars, and my large-ish Jeep J10 is just too thirsty for the $5/gallon gas. Plus, I’m realizing that having a new-ish car can help socially. It’s really not about me having a commute and needing reliability, because my cars are actually quite reliable (especially the J10), it’s really more about me growing up a little bit.
To be honest, I really want to buy a BMW i3, because I want to practice what I preach, which is that people with commutes should drive EVs if they can, since the real joy of ICEs — the joy of driving (especially a stick shift) and listening to a nice exhaust note — is often lost during a boring commute, anyhow. Plus, as an engineer, I consider the BMW i3 to be a fascinating machine, with its carbon fiber body mounted to a frame, propelled by an EV powertrain with a battery that can be topped up by a motorcycle engine-derived motor that BMW calls a “range extender.” Here, you can learn more:
The problem is, a used i3 costs $15,000. This isn’t horrible, per se, but I’m not convinced that it won’t be worth less than $5,000 in five years — and that’s a lot more depreciation than I’d like to deal with. I say this because if, in five years, we can all get used Chevy Bolts that offer 250+ miles of range for $10 grand, then why would anyone pay anything near that for an i3 with only 75 miles of EV-only rage?
I realize I’m making a big assumption that we’ll be able to get high-ish-range EVs for cheap in five years, but it’s really not that big of a stretch. The Chevy Bolt only costs about $26,000, and after a $7,500 federal incentive, it can be purchased, in theory, for under $19,000. That’s dirt cheap, and the Bolt won’t be the only machine in the coming years to offer that kind of smoking hot deal.
Will the i3 be left in the dust? Will my $15,000 purchase seem foolish? It’s already starting to look foolish in the context of that Bolt deal I could get today (again, in theory).
That brings me to the Jeep Wrangler JL. ICEs aren’t going away for good anytime soon, and when I said “obsolete” in my first paragraph, I really didn’t mean technically obsolete. I just mean obsolete to those on the market for a new car. If I buy a JL today, especially here in California, will it depreciate like crazy in the next five years as more people have EV options, as EV infrastructure grows, as EV incentives ratchet up, and as fuel prices remain high (and possibly increase — again, who knows?).
Honestly, both of these purchases seem high risk if I care about depreciation. A Bolt less so, since it’s an EV and offers decent range.
It’s a tough time to buy a new car. At least, for me it is, though maybe I’m overthinking things. Maybe depreciation is just part of owning a new-ish car, though as someone who’s never bought a car that has depreciated, I’d like to own something that, at least from a basic technological standpoint, won’t be outdated in a few years. Maybe the problem is that the two cars I’m considering are already outdated.
Surely I’m not the only one facing this dilemma?
[Writer’s Note: I think the solution to EV hesitation is that if you can charge at home or at work and would like an EV, buy an EV that you like for other reasons than its powertrain. Think of it like buying a performance car: The AMGs, M cars and Corvettes of ten years ago can’t keep up with their modern equivalents in a straight line, but they’re generally more tactile, lighter, and simpler. The BMW i3 is outdated as an EV but it’s a cool feat of engineering with innovative construction, a lovely interior, and a funky form factor. The Ford Mustang Mach-E will likely be outdated in a generation but its inclination towards oversteer is fun and its buyer might love its styling. The Tesla Model 3 will eventually be outdated but it has a huge aftermarket community, good packaging, and the Supercharger network is an incredible feat of infrastructure. Every car eventually becomes outdated, but the great ones give us something to love once the new car smell wears off. -Thomas Hundal]
I hope you read all the comments but here is my take. If you want the i3 because you like it, then buy it. Are you really that concerned with re-sell value, we’ve all seen your fleet. You also won’t be tempted to modify the i3 so it can continue to be just a daily. The JL is a considerably better and more desirable machine and has resale value but it will in time become another project vehicle. If that is something that you want, and many here want you to want, then go for it. Just remember, one choice is smart (and kind-of cool) and the other is fun (and certainly cool). You decide your priorities.
Jeep. ICE cars that are desirable now (Wranglers, Mustangs, Tacomas, etc.) will stay that way. Even today’s desirable EVs will become e-waste when a new generation comes out. An i3’s life cycle has more in common with an iPhone than a car.
Buy the Jeep!
Depreciation will always exist on any car, even Wranglers. It’s just a price of buying new.
A 2 door manual trans Jeep like what you were looking for before will be unobtanium pretty soon. Just like a Wrangler without AC. Buy it, enjoy it, revel in it’s base-ness. It always will have value to you because you worked on it. Feel lucky it was a Wrangler – the first car I worked on was a 01 Civic 2 door, and NO ONE is keeping one those! While the Wrangler won’t HOLD it’s value it will still be worth more than others when you are ready to sell, relatively speaking.
The BMW is certainly unique and weird. However it is an extremely low volume science project that will be nearly impossible to get parts for and fix. Plus after the weirdness wears off it’s just an electric appliance, and that happens quick which means you are now having to buy and sell again.
Buy the Jeep
Why isn’t a 4XE on the list? It’s only 2-3x the price of your JL. 🙂
You’re in LA now, just be like everyone else and lease an EV for 3 years. You don’t have to worry about depreciation as you’re just renting it. You do the same thing again in 3 years. Yeah, doesn’t make great financial sense, but, how many of your cars actually do make financial sense especially when you factor in the cost of your time which is much higher now that you’re a publishing industry titan? 🙂
What about option number C? Are there any used Changli’s available in your area? I’ve heard they are great runabouts, will scratch the EV itch, and can be had with a truly badass graphics package.
I recommend Teslabjørn’s I3 very real-life range test and general comments here (in English!): https://www.youtube.com/watch?v=R0lzHZcPJnQ
I would hesitate to buy an EV hat is a couple of generations behind the leaders: resale value will be questionable. Also I would research battery service requirements, they may surprise for some brands. Which is why I switched to leasing when I went to an EV.
Jeeps are pretty immune to depreciation. They don’t really get ‘cheap’ until they’re over 10-15 years old. BMW resale values drop like a stone.
If you have a few ICE vehicles as backups, why not a full EV?
An i3 on the 405? One might as well commute in a hamster ball. One hit from a poorly maintained, over-loaded landscapers pick-up, or a wayward Tesla on FSD and your writing days are over.
If you get the Jeep, get the hardtop. It’ll keep the thieves on the lazier end of the spectrum from ripping off your tire tools and sunglasses.
Welcome to California.
1. Buy the jeep, keep it forever. You are one of her dads ffs. You will be proud of her (i tend to see cars as women) for the rest of your life, regardless how she treats you.
2. Buy the i3 as well for your daily commutes. Every modern car, ICE and EV, depreciates, one a little bit more than the other. The i3 will still be special in 5 years time, I compare it to the Audi A2 sold here in the EU. It has its drawbacks, but also enough character and a big fanbase.
(In general, if we (my family) are faced with a seemingly difficult choise 1 or 2, we always also consider the option 1 and 2. Granted, not always as expensive as with cars)
100% buy the BMW i3! What a cool car, and if you’re able to charge at home, no one cares about it’s limited range imo. And you’re in the situation to allways have a) have a fleet of other cars to take for longer trips and b) have access to press cars.
Get the one you helped create.
The first car I had engineering input on was at the crapcan end of the market, but the bit I did (powertrain) was reliable and can take a beating. They are 20 years old now, and if I had space there would be one outside right now. With the hood up so I can see the engine. The rest of the car is meh, but I get stupidly excited driving them.
The downside is that it’s socially unacceptable to force everyone you meet to look under the hood of an entirely ordinary car and enthusiastically reminisce about how clever one tiny feature is, or how many of those bits broke in testing before you fixed it. I still do it, obviously, but people avoid me more now.
The first car I worked on that is actually desirable is still too much money, and only getting more expensive. I regret not buying one when they were ten years old and at the bottom of their depreciation curve.
On the subject of depreciation: Mrs Muppet buys a new car every ten years and for the first ten years we knew each other I was wildly buying any cheap piece of crap I could and hooning it to death. We both thought each other’s car buying habits were financially idiotic, but over the ten years we actually spent the same amount of money buying and fixing cars. Although she spent those ten years in a pristine Civic and I spent it in ratty E30s and RX7s.
You helped make the JL happen! I vote JL.
Oh yeah.. downside about i3 their tires are a pain in the neck to source.
I think you should check in with Munro & Associates, I think they have BMW i3 tear down report for sale (for cheap?). It seems the i3 are cheap in California, didn’t LAPD just got rid of theirs? From testers like Bjorn Nyland, the BMW i3’s battery degradation is not too bad in his tests (and tests in much colder Norway).
Don’t buy a modern jeep. They *will* break down, a lot, because they’re Jeeps, but you won’t be able to wrench on them much except maybe the suspension because of all the modern tomfoolery and drive by wire and electronics. Also you already have 48715 jeeps.
That number has four of the same numbers in my zip code… the other is off by only one. If the Autopian had a lottery, and you paid a buck for your ticket, you might have won yourself a coupon for buy one drink, get the other half off at Torch’s Taillight Lounge.
Do you want my 2015 Volkswagen Golf GTI 6-speed? 290 horsepower and 40 MPG. It’s available in San Diego.
My two cents… buy the Jeep. How many times in your life are you going to buy new? In my case it was once, I’ll probably never drive new again. Give yourself a treat. Besides, by 2035 you won’t be able to buy a new ICE powered vehicle in California.
None of the above. Take the money you would have spent on those and put power steering, power disc brakes, air conditioning, an automatic overdrive transmission and fuel injection in your mustang. Write a series of articles about it. It’s SoCal, maybe just pay one of the many hot rod shops to do this and write about it.
David, I applaud your completely rational decision to acquire a comfortable, reliable DD. Your first I gather. Savor the moment. It’s a special high. When the day comes to part ways, it may be the hardest to let go of. You will have spent more time together than the rest. And it’s not likely to break your heart.
If depreciation is a significant concern, I would vote Jeep. I don’t see depreciation on it the way you do, not outside of California. There will be a lot of ICE fans whose options will have shrunk significantly. Maybe not in LA, but a rising tide will lift all boats. It may over depreciate in the mid-term but it will appreciate the long. The BMW will be a much deeper slide and a much shallower recovery.
And I agree with the comments referring to your personal connection to the car. If you don’t buy one now, you will sooner orlater. How can it not be special?
Either way, enjoy the moment.
You have a personal connection to the Jeep so to me it’s a no-brainer… Like others have said, it’s only going to be new like this for a limited amount of time but EVs areas here to stay. Plus, you’ll want a car that can also road trip out here.
Well said, Thomas!
You deserve a JL, David!
i3. You’ll meet a nicer funkier class of people.
The jeep makes the most sense out of the gate. I think the i3 would be cool, but I’d want some warranty left if I was buying an EV or PHEV for the first time. The 8-year Voltec warranty played heavily into my decision to buy a Volt when I purchased it, as it gave some peace of mind while owning something much less suited for DIY work than anything else I had owned up until that point. Thankfully I never needed to use it as the Volt has been remarkably reliable.
Just get the Jeep and pick up the jankiest old Leaf you can find at a later date to scratch the EV itch until those mythical cheap Bolts start to appear. I figure those things with 30 miles of range should be available all over out there for a bit more than the cost of tax, title, and license on the new Jeep.
Here’s a Craigslist special for just $3999. You know it’s a good one because the dealer pointed out that it’s an “all electric vehicle” AND it’s “smogged and ready to go”.
¯\_(ツ)_/¯ https://fresno.craigslist.org/ctd/d/clovis-2011-nissan-leaf/7590831347.html
My vote is pick a budget you can afford and stick to it. Any modern Jeep and i3 are not the same budget or class.
You are likely to buy a bazillion more rusty or fun cars over the next few years, so just get out of your head and buy a good, modern, traffic-eating daily driver. Yes, that is likely to be an appliance machine, and that is ok.
LA traffic is the issue, and a smooth, newish car (with decent features) is the cure for that.
The pain of depreciation will be there on any car. But that applies if you intend to re-sell it. Which from your history will not be something you can do easily whenever that is.
My vote, buy a decent EV or hybrid appliance that fits your budget, because that is what you need now.
Ol David
though as someone who’s never bought a car that has depreciated, I’d like to own something that, at least from a basic technological standpoint, won’t be outdated in a few years.