EV Myth: EVs Depreciate Faster than ICEs

Myth: EVs depreciate faster than ICEs 

Myth Busted: This is difficult to determine with the used electric car market being so new, but evidence does not show that most electric vehicles (EVs) have significantly faster depreciation or lower resale prices. Certain models, such as those from Tesla, seem to hold their value well while other EVs depreciate much faster than ICE vehicles. As the quality of these other models improve and there is a wider adoption, depreciation levels will likely become comparable. 

However, as ICE vehicles begin to phase out, the reverse may happen. Some ICE vehicles will increase in resale value due to their desirability while others will depreciate fasterIn a scenario where both gasoline vehicles and EVs face a similar depreciation rate of 65% over 10 years, we see that US gasoline and electric SUVs have comparable 10-year ownership costs in 2028 over an average of 15,000 annual miles”. 

Source: Mackenzie, Wood. “Electric Vehicles Can Help Save The Environment, But Can They Save The Owner Money?” Forbes, Forbes Magazine, 17 Nov. 2020, www.forbes.com/sites/woodmackenzie/2020/11/17/electric-vehicles-can-help-save-the-environment-but-can-they-save-the-owner-money/?sh=140b1afb2922.