Electric Vehicle Depreciation- Why EVs Depreciate Faster Than Any Other Vehicles?

Electric vehicles are becoming more commonplace on our roads. With manufacturers being pushed towards a more electrified future, we’ve seen battery-powered vehicles taking up more space on dealership forecourts, and with the impending 2035 ban on the sale of new petrol and diesel cars, EVs will likely become an even more frequent sight. However, the topic of electric vehicle depreciation has become a significant discussion point among potential buyers.

But despite this increasing production, used electric vehicle prices have continued to slide due to electric vehicle depreciation. This does make them an opportunity for a used car buyer coming to Carsa for a new vehicle—they still bring remarkable fuel savings over traditional petrol and diesel cars. If you want to learn more, contact Carsa today and explore electric vehicles we have in stock To answer our question- why have prices been so affected? Let’s take a look at the key reasons behind electric vehicle depreciation.

A high starting price

Given that electric vehicle technology is still relatively new, it has cost manufacturers a lot more to develop them than a traditional combustion engine-powered car. This higher development cost is a major factor contributing to electric vehicle depreciation. As a result, EVs are often accompanied by a significantly greater price tag than their petrol and diesel-powered counterparts.

With a higher starting price, there is more value to fall off during the first few years of ownership, a process closely tied to electric vehicle depreciation. However, it is reported that after the first 12 months following registration, used EV prices tend to depreciate similarly to petrol and diesel cars, though electric vehicle depreciation remains a notable issue.

Lower retail demand

Electric vehicles represent a great opportunity for business users. They bring lower rates of tax, and many businesses are incentivized to get their employees behind the wheel of an electric vehicle. As a result, fleet demand for EVs has skyrocketed—but retail has been left falling, which directly impacts electric vehicle depreciation.

This is another way that electric vehicle depreciation has been affected. Fleet demand means that there is a steady supply of electric vehicles going into the used market, but falling interest from the private sector means that there are fewer cars being bought second-hand—and this is what affects prices negatively, fueling electric vehicle depreciation.

Difficulty with charging at home

One of the biggest stumbling blocks towards the mass adoption of electric vehicles is reliable home charging. While homeowners with off-street parking or a dedicated space can quite easily get a charger installed—and take advantage of cheap overnight rates for electricity in the process—those without will find the whole experience far trickier. This challenge contributes to electric vehicle depreciation, as it affects the desirability of EVs on the used market.

Though incentives have been introduced for landlords to help with the cost of installing charge points for tenants, it remains one of the key issues in the way of electric vehicles and will, naturally, affect their used prices, further contributing to electric vehicle depreciation.

The best value EVs available through Carsa today

Though electric car depreciation has hit quite hard, the upside for used-car buyers is that they now represent a great value buy. Carsa has many used EVs currently in stock at some budget-beating prices, making them an attractive option for those looking to benefit from electric vehicle depreciation. Let’s take a look at some of the very best currently available.

Jaguar I-Pace

Jaguar’s I-Pace has experienced significant electric vehicle depreciation, but this makes it one of the best-value electric vehicles to buy used. You’ll find it within Carsa’s current crop of electric vehicles for sale, too. With a premium interior that has lots of high-quality materials, it’s a refined place to be, while the dual-screen setup gives you a futuristic access point to features such as media and navigation.

A claimed new range of up to 292 miles is impressive, and even on used examples, you should still be looking at around 250 miles from a full charge, further highlighting the value electric vehicle depreciation can offer to savvy buyers.

MG 5

The MG 5 is already a good-value EV from new, which makes a used version an even more appealing proposition. It’s one of the few battery-powered estate cars available in the UK, making it into a great pick for drivers who want to make the switch to an EV but still want a practical everyday vehicle.

The MG 5’s large boot and spacious interior are backed up by plenty of range, with a full charge bringing around 250 miles, making it a strong contender despite the effects of electric vehicle depreciation.

Tesla Model 3

Tesla is one of the most popular electric vehicle brands about and its BMW 3 Series-rivalling Model 3 is the car which really brought this American brand into the mainstream. With a futuristic exterior and a huge infotainment display the Model 3 remains a great choice and you should expect over 300 miles of range aptly named ‘Long Range’ versions.

Plus, Tesla Model 3 ownership means you get access to Tesla’s excellent Supercharger network which has thousands of reliable chargepoints dotted throughout Europe.

Fiat 500 Electric

The Fiat 500 Electric combines the retro-infused style that buyers love about this compact car with an efficient electric powertrain. While the 500 Electric might seem like a car suited for the city, a range of up to 199 miles means that it’s quite a good car for travelling further afield too.

Inside, the 500 has loads of classic-inspired design touches, albeit with a modern super-wide infotainment display that can be used to mirror your smartphone via Apple CarPlay and Android Auto software.

Nissan Leaf

The Nissan Leaf was one of the original mass-market electric vehicles and today, it remains a common sight on the used market. It’s practical and easy to drive, while this second-generation car is a great value option - particularly those models currently available through Carsa.

Expect a range of around 168 miles for the smaller-battery 48kWh version, or around 230 miles for bigger-battery models which have a 62kWh pack.

Carsa- Your Trusted Partner when it Comes to Electric Vehicles

While we’ve taken a look at some of the best-value EVs currently on sale via Carsa, there are still many more to browse if you fancy something a little different. Head on over today to see what’s in store and take advantage of electric vehicle depreciation to get an excellent deal. Want to have your questions answered now? Don’t wait, contact us today and our experienced team will answer any questions you may have regarding the EV but not only.