Some electric cars lose half their value in just 1 year

© Ford

The electric vehicle market is experiencing significant growth, but a worrying phenomenon is emerging: some models lose up to 50% of their value in just one year. This rapid depreciation obviously raises questions about the purchase and EV resale. Deciphering this situation and advice to protect your investment.

The vertiginous fall in second-hand prices

© Unsplash/Mitch Kemp

Imagine buying a new car for £100,000 and finding out it’s only worth £50,000 a year later. It’s unfortunate, but it’s the reality for many high-end EV owners. In the UK, models like the Audi e-tron G and the Ford Mustang Mach-E lose more than half their value in 12 months, according to Cap HPI data collected by Wired.

Even well-known brands aren’t immune. The Porsche Taycan, the electric flagship of the German manufacturer, has seen its value drop by 49% after one year. The Tesla Model 3, although very popular, is no exception to the trend with a depreciation of 45% over the same period.

In the US, the situation seems slightly better, but remains concerning. A 2022 Porsche Taycan Turbo loses about 32% of its value in two years, while a 2023 Polestar 2 sees its trade-in price drop by 40% in just one year.

Why such a drop ?

Several factors explain this accelerated depreciation. Rapid technological developments play a major role: EVs are advancing at breakneck speed, so much so that a 2022 model may already seem outdated compared to the new models from 2024 in terms of range or charging speed. High starting prices, especially for high-end models, are creating a bubble that quickly bursts on the used car market.

Persistent concerns about limited range and lack of charging infrastructure still hold back many potential buyers. Competition from new models, with manufacturers increasing discounts, is driving second-hand prices down. Finally, for many brands, this is their first generation of EV, and these “pioneering” depreciate faster.

How to limit case ?

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Faced with this situation, buyers and owners must adapt their strategy. Buyers have everything interest in favoring the recent opportunity to take advantage of the strong initial depreciation, targeting models aged 1 to 3 years. It is crucial to compare technologies and opt for EVs with the latest advances in battery and charging. Evaluating your real needs also allows you to choose a less expensive model, but adapted to your use, which will depreciate less in absolute value.

For owners, patience is essential. bet. Keeping your EV longer helps smooth out depreciation, which slows down significantly after the first year. Regular maintenance of the vehicle and maintaining good general condition will help preserve its value. It would surely be wise to use the vehicle “all the way”.

The future of the market used EVs

Despite these alarming figures, the EV market continues to grow. In the UK, new EV sales increased by 18.8% in July 2024 compared to the previous year, accounting for 18.5% of registrations.

As technology stabilises and charging infrastructure develops, EV depreciation is expected to normalise. Manufacturers are refining their models, and batteries are proving to last longer than expected. According to Recurrent, only 2.5% of batteries had to be replaced excluding manufacturer recalls.

Over-the-air software updates are a key enabler for maintaining the value of EVs over time. Tesla, Jaguar or Polestar have already demonstrated their ability to improve their vehicles years after they leave the factory, adding new features or increasing autonomy.

• Some EVs lose up to 50% of their value in a year, especially high-end models
• This depreciation is explained by the rapid evolution of technology, high prices and persistent concerns about range
• To limit losses, favor buying recently used or keep your new EV for longer. The situation should stabilize with the maturation of the market

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