Electric Cars Lose Their Value Far Faster Than Traditional Autos

Electric Cars Lose Their Value Far Faster Than Traditional Autos
Andrew Rummer

almost 3 years ago1 min

Mentioned in story

Electric vehicles (EVs) lose almost half their value in their first year of life, according to Bloomberg data from China – creating a hidden cost of ownership compared to traditional gas-fueled cars.

Crunching data from 20,000 sales of used electric vehicles in China – one of the world’s most mature EV markets – found that prices dropped by 45% on average after a year and 67% after three years. The comparable figures for cars with internal combustion engines were 25% and 40%, respectively. 

Price declines that rapid are more reminiscent of mobile phones than road-going vehicles, with newer models fetching a hefty premium over last year’s designs. Although with average EV range increasing by 13% each year since 2011 and now closing in on 400km, according to data from BNEF, perhaps it’s little wonder that older EVs fail to attract buyers.

While price declines were slower for premium brands like Tesla and NIO, such rapid depreciation may still put off plenty of potential EV owners and create a headache for this fast-growing industry.

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