Electric vehicles (EVs) are losing value at a faster rate than their gas-powered counterparts, according to a recent investigation by the magazine “Wired.” While all vehicles depreciate over time, certain EV models are experiencing particularly sharp declines, with some losing hundreds of dollars in value every day.
For most gas-powered cars, the average annual depreciation ranges from 10%-15%. However, several EV models from prominent automakers such as Tesla, Ford and Porsche have seen their value drop by up to 50% within 12 months. In some instances, this translates to a daily loss of over $600 in value.
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This steep depreciation means that after a year, a traditional combustion engine car can be worth over 40% more than a comparable EV, despite the higher initial purchase price of electric vehicles.
While this trend poses challenges for new EV owners, it creates opportunities for buyers in the second-hand market. The average price of a used EV has decreased by nearly 30% compared to in 2023, making them approximately 8% cheaper than used gas-powered cars.
[JACK AYLMER]
ANY TIME A VEHICLE IS ON THE ROAD – IT’S SLOWLY LOSING VALUE.
BUT FOR SOME E-V MODELS – THE DECLINE PER DRIVE CAN END UP BEING HUNDREDS OF DOLLARS.
THE NEW FINDINGS COME FROM A RECENT INVESTIGATION BY WIRED INTO THE DEPRECIATION OF ELECTRIC VEHICLES.
ON AVERAGE, THE VALUE OF MOST GAS-POWERED CARS FALLS BY ABOUT 10 TO 15 PERCENT ANNUALLY.
BUT THERE ARE EV MODELS LOSING UP TO HALF THEIR VALUE IN A SINGLE YEAR.
IN SOME CASES TRANSLATING TO A MORE THAN 600 DOLLAR LOSS EVERY DAY.
IT’S A PROBLEM IMPACTING ELECTRIC VEHICLES FROM AUTOMAKERS LIKE TESLA, FORD, AND PORSCHE-
WHO ALL HAD MODELS THAT DEPRECIATED BY AROUND 50 PERCENT OVER THE COURSE OF A YEAR.
A COMBUSTION ENGINE CAR CAN ACTUALLY BE WORTH OVER 40 PERCENT MORE THAN A COMPARABLE EV AFTER 12 MONTHS, EVEN THOUGH THE ELECTRIC VEHICLE COSTS MORE INITIALLY.
WHILE THIS TREND ISN’T GREAT FOR NEW EV OWNERS, SECOND-HAND BUYERS COULD ULTIMATELY BE SET TO BENEFIT.
THE AVERAGE PRICE OF A USED EV IS DOWN ALMOST 30 PERCENT COMPARED TO LAST YEAR-
NOW ACTUALLY OVER 8 PERCENT CHEAPER THAN A USED GAS POWERED CAR.
TO GET MORE STORIES ABOUT ELECTRIC VEHICLES LIKE THIS ONE, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME – JACK AYLMER.
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