The second-hand market is experiencing a boom never seen before. Even so, there are electric models with a higher depreciation rate and this one takes the cake. One of the important values to highlight when purchasing a new electric (or non-electric) car may be its market value beyond the initial purchase price. But which electric car has the highest or lowest depreciation on the second-hand market? A clue: both cases occur in the most famous electric model company in the world run by Elon Musk.
According to a study published by iSeeCars: “Electric vehicles are the segment that maintains their value the worst, losing 49.1% in five years. “Pick-ups and hybrids retain the highest value, losing only 35% and 37%, respectively.” However, it is not all bad news for electric models, since their depreciation over five years has been reduced. In 2019, it was 67.1%, while in the current year 2023, it stands at 49.1%.
The contrast between Tesla
Looking at the table published in the aforementioned study where the models are specified individually, you can see how the Tesla Model 3 is the electric car that has the least depreciation on the market, with 42.9% in five years. Next, find the Tesla Model X, with 49.9%; the Nissan LEAF, with 50.8%; the Chevrolet Bolt, at 51.1%, or the Tesla Model S with 55.5%. The latter, specifically, is the electric model with the highest depreciation rate.
In this table, you can see that there are not many more models than the five mentioned. This has to do with the fact that the electric car market is relatively new and there are hardly any models that have a life of five years or more to compare between the data for 2019 and that of 2023. But, what is the reason for this further depreciation? accused compared to other market segments?
|Ranking of EVs by 5-Year Depreciation – iSeeCars Study|
|Rank||Model||Average 5-Year Depreciation|
|1||Tesla Model 3||42.9%|
|2||Tesla Model X||49.9%|
|4||Chevrolet Bolt EV||51.1%|
|5||Tesla Model S||55.5%|
According to what Karl Brauer, executive analyst at iSeeCars, “Between incentives that effectively reduce the price of an electric vehicle before you even buy them and concerns about battery replacement costs, used electric vehicles have always suffered a greater depreciation than equivalent gasoline cars. This pattern will continue until electric vehicles no longer require large incentives to sell and consumers gain confidence in their long-term ownership costs.”
This should be a passing symptom since electric cars could still be considered a relatively new technology. As the years go by, this trend should reduce, as has already happened between 2019 and 2023.