Do Electric Vehicles Retain Their Value?

July 20th, 2022 by

electric vehicle

At Patriot Chevy Limerick, we know how many factors come into play when you’re considering an electric vehicle. Let’s focus on a big one, which can get overlooked: do they retain their value after a sale?

Here’s a look at the ways electric vehicles (EVs) can depreciate in value, compared to their internal combustion engine (ICE) counterparts.

Cars Depreciate Immediately

All cars suddenly drop sharply in value once they are sold. This is a natural part of the process and cannot be avoided. EVs tend to depreciate a bit more than their ICE cousins, however: on average, EVs will depreciate roughly 52% over the first three years.

That’s compared to a 37.7% average drop in value across other types of ICE vehicles (sedans, SUVs, trucks). It can seem like EVs are, in the short term, less of a sound place to put your money.

The main reason for this depreciation includes a (generally overblown) worry about battery replacement needs.

Do the Numbers Really Add Up?

The factors that feed into these statistics need context. EVs have only truly taken off in the past half-decade or so. The demand for them does not yet meet that of ICEs, but it is rising sharply.

Additionally, with government incentives to purchase EVs and their low fuel and maintenance costs, the slightly higher depreciation isn’t all that important financially.

Find out more about how it feels to drive an EV and schedule a Chevy EV test drive at Patriot Chevy Limerick today.

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