Yahoo Finance 8 Electric Vehicles That Will Depreciate the Most in 2024
We are seeing a new phase in the electric vehicle market in 2024. While sales continue to grow, they are growing slower than expected. Early adopters remain committed to their E.V.s, but mass market consumers are still hesitant, largely due to worries about cost and a lack of infrastructure.
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Now, potential E.V. owners have another reason to delay going electric: rapid depreciation. According to a recent iSeeCars study on 5-year depreciation rates, the subset of E.V.s on the market for at least five years has the worst depreciation of all the major vehicle types. According to the report, the average five-year depreciation rate for electric cars is 49.1%. The industry average was 38.8%.
E.V. technology is still in a stage of relative infancy. That means that although all new cars depreciate quickly, many electric models fall victim to rapidly developing technology and get left behind quicker when newer models offer longer ranges and faster charges.
According to iSeeCars executive analyst Karl Brauer, it can be challenging for any electric car to maintain value over time due to a variety of factors, including new technologies such as lithium-ion batteries and the intricate network of rebates and government incentives designed to increase demand for E.V.s.
“Used electric vehicles have always suffered higher depreciation than equivalent gasoline cars,” said Brauer. “This pattern will continue until electric vehicles don’t require heavy incentives to sell and consumers gain confidence in their long-term ownership costs.”
Partnering with valuation specialists CAP, U.K.’s Carwow has also found a higher depreciation trend among some electric vehicles, especially in the short term. Although its list of E.V.s that have suffered some of the biggest drops in value over 12 months includes foreign brands not available in the U.S., like Cupra, Ora and Citroën, it also lists electric models that are becoming popular stateside, like the Kia EV6, Toyota bZ4X and Audi e-Tron G.T.
Those three models, plus five cited by iSeeCars make up the eight EVs that will depreciate the most in 2024.
Tesla Model 3
The Model 3 is the only model with a 5-year depreciation rate under the E.V. average of 49.1%. But it still loses 42.9% over that same timeframe, more than 4% higher than the industry average. With an MSRP hovering around $40,000 now, the base Model 3’s price slashed 18 times since Feb. 2019, a common company strategy to boost sales or clear inventory.
Audi e-Tron G.T.
Sharing a platform with the Porsche Taycan, the e-Tron G.T. is Audi’s first electric sedan. Reviews have praised the e-Tron’s power and performance, but have noted its underwhelming range (Car and Driver got 240 miles in testing, lower than rivals like the Lucid Air and Tesla Model S). With an MSRP of $106,500, cheaper options with longer ranges might not have a 27% drop in value in one year, per Carwow.
Nissan Leaf
Nissan has announced that it will discontinue the Leaf sometime in the mid-decade as it falls in line with the rest of the auto world by focusing on larger, more expensive vehicles (in this case, the Ariya). It’s a shame, in a way. The Leaf was the first mass-produced E.V. to hit the U.S. market and a rare electric model selling under $30,000. However, it’s also getting long in the tooth, hasn’t sold particularly well over the years and has a five-year depreciation rate of 50.8%, per iSeeCars’ study.
Kia EV6
Brauer notes, “While a used car almost always costs less than it did new, some models lose more than 25 percent of their value after just one year, giving buyers a near-new ownership experience at a substantial savings.” So, buying a Kia EV6 slightly used versus new might be a better idea, as there is a significant difference — -$18,081 or -33.3% — between the two.
Tesla Model X
It’s been nearly a decade since Tesla unveiled its most expensive vehicle, the Model S (prices range from $77,990 to $140,000, with a mean price of around $106,865). No one denies that the Model X is long on style, range, and agility, but “the X seemingly sacrifices practicality for the purpose of showboating,” states Consumer Reports. Over five years, it will be worth 50% less than what you pay today.
Chevrolet Bolt
For consumers searching for a small electric vehicle (E.V.), the Chevrolet Bolt has been a reliable option since its launch back in 2017. With an EPA-estimated range of 259 miles on a full charge, it is appropriate for occasional road trips as well as regular driving (Edmunds’ real-world test had the Bolt going 278 miles in 2022). But again, although affordable, the Bolt was never impressive enough in design, range, and power to compete with newer models, and Chevrolet has officially ending production on the Bolt EV (and Bolt EUV).
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Toyota bZ4X
Almost identical to the Subaru Solterra and — the Lexus RZ, both electric SUVs were jointly developed — the long-awaited Toyota E.V. has yet to impress buyers like Toyota expected. According to Edmunds, the bZ4X’s “lackluster range, performance and interior design sink it to also-ran status in the E.V. field.” Adding to the frustration of bZ4X owners is a high one-year depreciation rate of 32%, per Carwow.
Tesla Model S
Premium cars tend to lose value more quickly than mainstream models. On average, they lose 48.1 percent of their worth after five years, according to iSeeCars. In contrast, the industry average for non-luxury cars is 36.8%, and the industry average of 38.8%. Tesla’s oldest car has a five-year depreciation rate of 55.5%, the highest among electric vehicles and nineteenth among the top 25 luxury vehicles.
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This article originally appeared on GOBankingRates.com: 8 Electric Vehicles That Will Depreciate the Most in 2024
