Electric vehicle depreciation rates comparable to ICE models
New analysis has found that vehicle depreciation is similar for electric cars and petrol models.
Research carried out by Cox Automotive has revealed that electric vehicle values depreciate by an average of 38% to 42% after three years.
Meanwhile, petrol cars depreciate by 35% to 40% over the same period.
The data also found that used electric vehicle sales rose by 32% year on year during the first quarter of the year, although battery condition, vehicle range, charging capability, software support and service history are becoming increasingly important to electric vehicle pricing.
The company said: “How vehicles hold their value is a crucial question for fleets, retailers and original equipment manufacturers. With more electric vehicles entering the used car market, understanding future vehicle values is more important than ever.
“Our data shows that buyer confidence is growing thanks to more stable pricing and better battery reporting. However, forecasting remains a challenge as technology, incentives and supply continue to evolve.
“Electric vehicle residual values are now more closely tied to measurable factors than to uncertainty around battery lifespan and OEM technologies. With depreciation showing signs of stabilising, prior volatility may ease.
“This provides retailers, fleet operators and manufacturers with a clearer direction when forecasting residual values. While faster product cycles, evolving incentives and policy changes continue to influence the market, electric vehicle depreciation is becoming easier to assess than it was only a few years ago.”
