Electric Cars Expected to Lose Their Value - Big Time

Sales

It's called depreciation, and it's striking EVs harder than most regular cars.

Pure electric vehicles are still a fairly new thing, and only now are analysts beginning to see whether or not they’ll retain their value after a few years of ownership. Kelly Blue Book, one of the most popular sources for owners to ascertain their car’s value, has just come out with an analysis regarding EV depreciation. And it ain’t too pretty. The Nissan Leaf, for example, is predicted to be worth less than 15 percent of its original price after the first five years of ownership.

The Ford Focus EV will retain 20 percent while the Chevrolet Spark EV will keep 28 percent of its value. So why are EVs likely to lose their value at a higher rate than gasoline-powered cars? Part of the reason is that buyers rarely pay the full MSRP due to tax breaks along with other state and local incentives. Simply put, cars sold at a discount depreciate faster. Tesla, for example, aims to counter this predicted trend by backing the resale value of its Model S for buyers who opt to use the Tesla finance program. Unless you can really afford to take a loss on your EV, with the exception of Tesla, then perhaps it’s not a good buy after all.

You Might Also Like
10 Cars That Would Be Way Better With Turbos
10 Cars That Would Be Way Better With Turbos
Remembering Sergio Marchionne With His 10 Greatest Achievements
Remembering Sergio Marchionne With His 10 Greatest Achievements
Jaguar XE 300 Sport And XE SV Project 8 Create Modern Art

Two vastly different sports sedans that share a common thread.

All-New Revolutionary Mazda3 Teased Ahead Of LA Reveal

Along with its game-changing sparkless ignition engine.

WatchThe Extraordinary Nissan GT-R50 Being Built By Hand

It’s all about bending sheet metal the old-fashioned way.

Here's How Aerodynamics Make The Lamborghini Aventador SVJ So Much Faster

Take a behind the scenes look at this amazing system.

Fake Lamborghini Murcielago SV Reverse-Engineered By Iran

The Chinese couldn’t have done it better.

Hennessey Trackhawk Is World's Quickest SUV

That's what a thousand horsepower will do for ya.

5 Things You Need To Know About The 2019 BMW X5

After driving the car for the first time, here are our key takeaways.

Watch The BMW M2 Competition Lap The Ring In 7:52

That was supercar territory not long ago.

Kim Jong-un Gets Classy With New Ride

So much for sanctions.

What's Hot

Related Cars

Starting MSRP
$29,990
Starting MSRP
$74,500

Related Reviews

2016 Tesla Model S Review: Easy To Love But Hard To Commit To
Test Drive
9
2016 Tesla Model S Review: Easy To Love But Hard To Commit To
2018 Nissan Leaf Review
Model Overview
0
2018 Nissan Leaf Review
2018 Tesla Model S Review
Model Overview
0
2018 Tesla Model S Review
2018 Nissan Leaf Test Drive Review: If Only It Wasn't A Car
Test Drive
0
2018 Nissan Leaf Test Drive Review: If Only It Wasn't A Car