Myth Buster: EVs depreciate faster than ICEs

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 faster. “In 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.