PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Do electric cars depreciate faster than regular cars?
Before buying a new vehicle, I always need to know the resale value just in case I want to upgrade in a few years. Do electric cars depreciate faster than regular cars?
Chanice Boyd · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You’re on the right track—it’s essential to know your car’s resale value. In this case, getting an
electric vehicle
might not be your best bet because they depreciate faster than regular cars. While depreciation is inevitable, electric cars tend to go at it a bit faster than their gas-powered counterparts. A study done by hotcars.com showed that electric cars depreciate by 52% after three years, while a standard sedan only depreciates at 39%
What could be causing such a major decline? Well, the culprit seems to be a combination of things.
Here are the factors that contribute to an EVs depreciation:
- New car incentives—In efforts to reduce global pollution, governments and manufacturers often give out tax credits and incentives for people who purchase new electric cars. These incentives can affect how EVs are priced.
- Demand—Even though there has been a rise in electric vehicle production, there still isn’t a high enough demand for electric cars. This limits the publics’ ability to resell their vehicles at higher prices.
- Advancing technology—Electric cars are constantly being upgraded and rapidly so. A few years after purchasing your new vehicle, there will probably be a better, more advanced version on the scene.
- Range anxiety—Commuters often wonder about how much range is available in an electric car, so much so that it’s been given the name range anxiety. So when it comes time to resell the vehicle, you’ll be doing so with less range making it harder to close the sale.
If you still want to go electric, there are some things you’ll need to consider, but you don’t have to worry about your car insurance. Let
Jerry
contact your insurance company to get the details of your current coverage, so you don’t have to scale a mountain of questions. You get all the best prices and coverage with none of the legwork. And if that company isn’t for you, Jerry helps cancel your old policy.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies