Tesla EVs have both the highest and lowest 5-year depreciation rates of any EV, with the Model S claiming the highest and the Model 3 claiming the lowest.
According to iSeeCars research, electric vehicles are the worst vehicles in terms of retaining value, while hybrids and pickup trucks retain value best over a 5-year period.
iSeeCars said the electric vehicle segment is the worst holding its value, losing 49.1 percent over five years. Trucks and hybrids retain the most value, losing just 35 and 37 percent, respectively.
The silver lining for electric vehicles is that in 2019, electric vehicles lost an average of 67.1 percent of their value after 5 years. This figure has now improved significantly by 18% to 49.1%.
There is a fairly large difference between electric vehicles – 49.1% and hybrids – 37%, some of which can be explained by the US federal tax credit offered for electric vehicles.
Karl Brauer, executive analyst at iSeeCars, explains: Despite incentives that actually lower the price of an EV before purchasing it, and concerns about battery replacement costs, used EVs have always experienced more wear and tear than equivalent traditional cars.. This model will continue until EVs need major sales incentives and consumers have confidence in their long-term ownership costs.
If we look at individual electric vehicles, there is also a fairly large variation in the percentage of depreciation over 5 years. The Tesla Model 3 holds its value best, while the Model S loses the most. Below are just a few models. This is because there are few EVs that have been on the market for 5 years or more, or because the sample size of some of these rare EVs is too low.
The key takeaway here is that for buyers interested in buying a used EV, high depreciation means there are some pretty compelling deals out there. It should also be noted that if you buy a used electric car, be prepared for the fact that over the next few years it will greatly lose its value, because the resource of its expensive part (battery) is limited not only by mileage, but also by time.