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.



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG