If you're considering buying an electric car, you might want to think twice before making that decision. A recent study shows that these vehicles lose up to 50% of their value in just one year, a concerning figure for potential buyers.
Depreciation of electric cars: an alarming phenomenon
According to a study published by Wired, electric cars depreciate much faster than their internal combustion engine counterparts. Using data from valuation tools such as Edmunds and Cap HPI, researchers found that in the UK, several electric car models see their value drop by 50% in the first 12 months after ownership.
This is particularly striking for some high-end models. For example, the Audi e-Tron GT, Ford Mustang Mach-E, and Polestar 2 have all lost around 52% of their value in one year. Even the popular Tesla Model 3 has not escaped this trend, recording a 45% depreciation over the same period. This phenomenon is not limited to a few isolated models, but appears to affect a wide range of electric vehicles, highlighting a growing problem in the automotive market.
A major impact on the second-hand market
One of the most direct effects of this rapid depreciation is its impact on the second-hand market. For those hoping to resell their electric car after a short period of time, the loss in value can come as a shock. Models like the Porsche Taycan and Hyundai Ioniq 5, which lose 49% and 50% of their value respectively in a year, show how difficult it can be to recoup a significant portion of the initial investment.
This situation creates an opportunity for buyers in the used market, where nearly new vehicles can be acquired at prices well below their original ones. However, for first-time owners, this means a significant financial loss, which can dampen enthusiasm for electric vehicles.
Comparison with thermal vehicles: surprising results
The study also compared the depreciation of electric vehicles with that of their thermal equivalents. The results are edifying. For example, by comparing a petrol-engined Audi Q7 55 TFSI with an electric Audi Q8 e-tron 55, the researchers found that the thermal model retained a 42% higher value after one year, despite a lower initial purchase price.
This trend is also confirmed in the lower market segments. A Volkswagen Golf with a combustion engine shows a premium of 46% compared to an equivalent electric model after three years and almost 50,000 kilometers. Even in the case of premium models such as the Porsche Panamera and the Porsche Taycan, the depreciation of the 4S versions over two years is similar, although the two models have different energy sources.
Why this rapid depreciation?
There are several factors that explain why electric cars are depreciating so quickly. First, there is the ongoing concern about battery life and the still-insufficient charging infrastructure. These concerns, while mitigated by recent technological advances, continue to weigh on consumer confidence. In addition, the models most affected are often those of the first generations, which do not benefit from the technological improvements of more recent versions.
Also to be considered are the strong financial incentives and government subsidies offered for the purchase of new electric vehicles. These subsidies, while stimulating initial sales, contribute to the lower prices of used vehicles, as potential buyers often prefer a subsidized new model to a slightly cheaper used model.
The Dilemma of Electric Car Owners
For electric car owners, this rapid depreciation poses a real dilemma. If you invested in an electric vehicle hoping to reduce your carbon footprint and take advantage of the latest technology, you may be disappointed to see how much the value of your car has dropped in a short space of time. For those planning to sell their car after a short period of time, the financial loss could be significant.
This phenomenon raises important questions about the economic viability of electric cars for consumers. While these vehicles offer many ecological and technological advantages, their high cost and rapid depreciation could deter some, especially those who plan to resell in the short term.
Towards a market evolution?
The electric car market is still evolving. With continued advancements in battery technology and expansion of charging infrastructure, it is possible that the situation will improve in the coming years. However, for now, potential buyers should be aware of the financial challenges associated with purchasing an electric vehicle, especially when it comes to its resale value.
As electric vehicles become more common on our roads, this issue of depreciation could well become a determining factor for many consumers. The automotive market will undoubtedly have to adapt to these new realities to continue to promote electric mobility in a sustainable and attractive way.