Data Shows Luxury And Electric Cars Suffer The Lowest Resale Values (2024)

FAQs

Do electric cars have poor resale value? ›

A recent study from iSeeCars.com showed the average price of a 1- to 5-year-old used EV in the U.S. fell 31.8% over the past 12 months, equating to a value loss of $14,418. In comparison, the average price for a comparably aged internal combustion engine vehicle fell just 3.6%.

Electric cars lose as much as half of their value after just three years on the road, new figures show, as the rate of depreciation far outstrips petrol equivalents.

Firstly, and most importantly, EVs are expensive. An EV's average price in the U.S. for 2023 was around $60,000. Even as the variety of EV models available rises and prices fall, and the U.S. brings in tax credits, EVs remain much more expensive than their gasoline-powered counterparts.

Typically speaking, electric car batteries last anywhere between 10-20 years. However, it's crucial that you keep your batteries in good condition, as your EV can't run without them. If the batteries become damaged, the value of the whole car will suffer as a result.

Used electric vehicles are depreciating 10 times faster than their gas-powered counterparts, according to a new study from iSeeCars.com. The average price of a used electric vehicle plummeted 31.8% over the last 12 months, compared with a 3.6% decline overall.

In the United States, new electric car registrations totalled 1.4 million in 2023, increasing by more than 40% compared to 2022. While relative annual growth in 2023 was slower than in the preceding two years, demand for electric cars and absolute growth remained strong.

How did Elon Musk depress EV resale values? Musk aggressively sliced more than 20% off new Tesla prices to try to maintain market share in an increasingly competitive EV market. Those price declines pressured the entire used EV market, but especially his own cars.

EVs Are Too Expensive

EVs tend to have higher upfront prices than similar gas-powered cars. However, electric cars aren't necessarily more expensive to own over time. Moreover, all cars are much more expensive now than they once were.

One key disadvantage of electric cars is the battery life. Like all batteries, the capacity decreases over time. Researchers suggest battery capacity decreases by approximately 2.3% every year. Battery longevity is highly dependent on temperature.

What is the biggest issue with electric cars? ›

Consumer Reports said EV owners most frequently reported troubles with battery and charging systems as well as flaws in how the vehicles' body panels and interior parts fit together.

Myth #1: Electric vehicles are worse for the climate than gasoline cars because of power plant emissions. FACT: Electric vehicles typically have a smaller carbon footprint than gasoline cars, even when accounting for the electricity used for charging. Electric vehicles (EVs) have no tailpipe emissions.

EV batteries typically last 10 to 20 years, but certain factors can impact that lifespan. Battery chemistry, driving habits, environmental conditions and maintenance practices all affect EV battery life.

Overall, the transportation sector accounts for approximately 30% of total U.S. energy needs and 70% of U.S. petroleum consumption. Using more energy efficient vehicles like hybrid and electric vehicles supports the U.S. economy and helps diversify the U.S. transportation fleet.

Over the past year, used EV values have dropped faster than their gas-powered counterparts, car search engine iSeeCars said. The average price for a used electric vehicle fell by up to 32% while the average for a gas model slipped by 3.6%.

When it comes to depreciation, all cars are not created equal. Electric vehicles lose more value than any other type, according to a new analysis from iSeeCars.com. In 2023, the average EV had lost 49.1% of its value after five years.

To be clear: The American market for EVs is not collapsing. In the last quarter of 2023, EV sales were up 40% from the same quarter a year before, according to Cox Automotive.

AAA estimates that the electricity needed to drive 15,000 miles per year in a compact EV costs an average of $546. The organization estimates that with a similar gas-powered vehicle, it would cost $1,255 to drive the same distance. Using those estimates, driving an EV can save you $709 in fuel costs annually.