Sell your EV the easier way

Yes. As with internal combustion engine (ICE) vehicles, electric vehicles (EVs) are subject to depreciation.

Depreciation refers to the drop in a car’s market value over its lifecycle. This drop in value varies between makes and models but typically represents a drop in value of between 15-35% in the first year and up to 50% by the third year. This rapid depreciation then slows after year three.

As with ICE vehicles, the main factors that will cause this depreciation will be age and mileage. Unless it is a classic car, as a rule the older a car is the less its market value will be. Similarly, a high-mileage car will typically be worth less than the same model with less miles on the clock, simply because mileage is a key indicator of a car’s overall condition.

For those in the market for a used electric car, depreciation is often a good thing as it means they can pick up a three-year-old EV model that is in great condition – but which will have lost a large percentage of its original market value.

As with fossil fuel vehicles, electric vehicles will lose their value over time.

However, prestige electric car models – from manufacturers like Tesla and Mercedes –depreciate less quickly than more basic models and will typically retain around 65% of their market value after the first three years. This is simply because they offer drivers the desirable combination of high-performance engines and ultra-low emissions. This makes them very popular with drivers currently dealing with rising congestion and fuel prices.

Whereas less expensive models from manufacturers like Nissan and Toyota typically depreciate quicker. As these models generally use cheaper working parts in their EVs, they tend to wear down more quickly – and this often negatively impacts their resale value.

In the UK, the Tesla Model 3 was the bestselling electric car last year – with nearly 35,000 models registered. The Model 3 was also the bestselling electric car in the world in 2020 – with more than 365,000 sold globally.

Electric vehicles accounted for 11.6% of all new car registrations in Britain in 2021. The most recent UK statistics show that as of April 2022, the Tesla Model Y is the bestselling EV this year.

High-end electric vehicles manufactured by brands such as Tesla and Mercedes typically retain their value for longer than other electric cars.

The Tesla Model X was the slowest depreciating EV over the last three years. A recent report by vehicle lifecycle experts Cap hpi states that the Model X generally maintains around 57% of its original value after the first three years.

However, on average, electric vehicles do not depreciate any faster or slower than petrol of diesel models.

In the UK, electric vehicles usually depreciate between 15% and 35% in the first year, and up to 50% by the third.

Based on mileage of 10,000 miles per year, the average electric vehicle will lose around 60% of its original sale value after the first three years.

Few cars are a good long-term investment. Most lose value over time.

Early EVs were subject to extreme depreciation – for example, early Nissan LEAF models typically depreciated to the point where they were only worth around 11% of their original sale price after the first five years.

However, most modern electric vehicles tend to depreciate on a par with their fossil fuel counterparts – apart from high-end Tesla and Mercedes models that tend to hold their market value longer.