Tech - News
The Truth Behind The Terrible Resale Value Of Electric Cars
It's no secret that while electric cars save money on fuel and can be snagged at a decent price — they depreciate at a lightning-fast rate and this expense must be factored into the purchase decision. EVs typically lose more than $5,700 per year, for the first five years on average, as compared to a gas-powered car, which typically loses less than $3,200 per year over five years.
Surprisingly, one of the main factors that leads to depreciation is incentives given to new EV owners to help them buy their vehicle in the first place, as it causes the price of the vehicle to tank when it’s resold. Other factors include weaker demand for EVs versus regular fuel-powered cars, the limited lifespan of EV batteries, and the rapidly changing EV technology.
While most other EVs will depreciate after several years, the Tesla Model 3 is an exception: Not only does it have a resale value that is five times better than other EVs on the market, it also retains 90% of its total value after three years. Another reason why the automaker has a slower rate of depreciation is that potential Tesla buyers can no longer get federal tax credits.
To prevent or lessen depreciation, consumers can buy or lease a second-hand electric vehicle, as previous owners will have already eaten the bulk of the expense. Also, EV owners should keep up with maintenance and strive to keep the interior and exterior of their car spotless — it’s worth springing for professional detailing services, so the car is in pristine selling condition.