When purchasing a vehicle, a key consideration for many buyers is the rate of depreciation. If you’re interested in buying a car that will hold its value in the longer term, you should consider opting for an electric vehicle (EV).
Unlike their combustion engine counterparts, used EVs often experience slower rates of deprecation. This can be attributed to several factors, such as higher market demand, lower running costs, and exemptions from road tax (VED).
Although EVs are often priced higher than traditionally fuelled cars, buying one could help your money go further, as when the time comes to sell your car, you should have more cash to put towards your next purchase. (You can find out how much your EV is currently worth using webuyanycar’s free car valuation tool.)
In this guide, we will define depreciation in the context of used cars. We’ll also examine why EVs typically retain more value than combustion models – and highlight some of the key depreciation factor for EVs. Finally, we’ll list five EVs that are known for retaining more value than their rivals.
Depreciation, in the context of used cars, refers to the decline in a vehicle’s value over time. This is influenced by various factors, including:
Cars are among the biggest purchases most of us will make. Therefore, understanding how depreciation works can help you to protect your investment.
Traditional combustion engine vehicles tend to depreciate faster than equivalent electric models. This is largely due to increased demand for environmentally friendly transport.
Additionally, advancements in EV technology (such as improved range and reliability) and growing public awareness about these benefits have also contributed to their slower depreciation rates.
Several factors influence the rate at which EVs depreciate. These include:
By understanding these factors, car buyers can make more informed decisions when considering an electric vehicle purchase.
This practical family EV loses just 48% of its brand-new value at the three-year mark.
The BMW i3 loses a little over half its value after three years. However, given the high cost of new electric BMWs, purchasing a used model could be a smart option for many readers.
Tesla’s popular Model 3 offers affordable tech and performance, together with excellent value retention. After three years, you can expect your Model 3 to lose a little over 40% of its brand-new value.
The Polestar 2 is an all-electric hatchback offering a range of more than 400 miles. This model typically loses just 42% of its brand-new value after three years.
Finally, the e-Golf also fares well in the value retention stakes, losing just 49% of its value after three years. This model is constantly in demand among second-hand buyers, thanks to its affordability and family-friendly practicality.