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.
