Luxury electric vehicles (EVs) are experiencing significant depreciation according to research by iSeeCars, with the Mercedes-Benz EQS leading the pack, losing nearly half its value within the first year, dropping by an average of $65,143. The Nissan Leaf follows closely behind, shedding $15,786 or 45.7% of its value. Other EVs like the Kia EV6, Hyundai Ioniq 5, and Volkswagen ID.4 also exhibit substantial depreciation rates.
This trend challenges the perception that EVs hold their value well. Factors contributing to this phenomenon may include increased competition among manufacturers and rapid advancements in battery and charging technology. Some speculate that waning consumer interest in EVs could also play a role.
However, not all EVs are affected equally. Tesla’s Model Y and Model X are bucking the trend, maintaining relatively stable resale values. In some instances, used Model Ys are priced higher than new ones, attributed to Tesla’s pricing strategies. While Tesla vehicles do depreciate, their rates are notably lower compared to other EVs.
The disparity in depreciation rates suggests that brand reputation, technology, and market strategies significantly influence EV resale values. Despite the overall depreciation trend, Tesla’s unique position in the market enables it to retain value better than its competitors.
