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Do electric cars depreciate faster than internal combustion engine cars?
I typically shop around for a new car every five to ten years and like to go for something that has a good resale value. If I buy an electric car, will that hold true, or do electric cars depreciate faster than regular cars?
Allison Stone · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Doing the research before you buy is an important part of the car-buying process, and
electric cars
especially deserve extra attention as they are such new technology to the mainstream market. There’s no avoiding depreciation, but electric cars do tend to lose value more quickly than gas-powered cars. According to Forbes, electric cars lose more than $5,700 off the sticker price per year of ownership. This is compared to less than $16,000 over five years for most other traditional vehicle types.
Not all electric cars are created equal, however. For example, a Tesla Model 3, the most affordable of all Tesla models, only depreciated 10.2% in three years, likely due to the high demand and hot status of the affordable EV. After all, people spend years on waitlists for the Model 3, so it makes sense that the resale value would remain competitive.
One way to get the most value out of your car is with the right
car insurance
plan. Jerry
is an app that acts as a licensed broker and does all the hard work of finding and comparing quotes from the top name-brand insurance companies so you don’t have to. Jerry will even send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
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- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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