New data highlights the significant depreciation of electric vehicles (EVs) compared to traditional petrol and diesel cars, with electric cars dropping in value by an average of £11,225 over the first three years.
Analysis by digital car finance lender Carmoola and vehicle valuation experts Brego reveals that EVs lose nearly half of their value during this time, much faster than conventional fuel types.
A key findings revealed that EVs lose an average of 21% of their value – or about £5,000 – in the first year.
The Renault Zoe and Audi E-Tron are among the worst performers, depreciating by 63% and 59% respectively over three years. The Jaguar I-Pace and Nissan Leaf also suffered, losing nearly 60%.
Skoda Enyaq and Volkswagen ID.4 hold their value better, with the Enyaq losing only 30% of its value.
German brands dominate the list of the slowest-depreciating EVs with the Volkswagen ID.4 retaining 55.85% of its value, while Mercedes-Benz EQA retained 53.75%.
The Polestar 2 and Volkswagen ID.3 also held more than half their value.
The rapid depreciation of EVs is attributed to several factors, including the fast pace of technological advances, improvements in battery range, and the high price tag of newer models.
Aidan Rushby, founder and CEO of Carmoola, said: “Whilst electric car owners who bought new several years ago might be smarting from considerable losses, this data shows that savvy car buyers can avoid the brunt of value depreciation by buying an EV at the right time and, crucially, used.
“Newer electric cars hitting the market with healthier battery ranges and the latest technology can come at a lofty price tag, making them inaccessible for the majority of drivers.”
