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Depreciation Rate of Used EVs - Do They Hold Value?
Wondering if EVs hold their value? Find out how they compare to petrol cars and what influences their resale over time.
When stocking your used car dealership, you’re probably looking for models that will hold their value for years to come.
But when it comes to EV depreciation, you might be wondering if EVs depreciate faster than traditionally-fueled vehicles, or if they retain their value over time.
We’ll break down the facts, compare depreciation in EVs vs. ICE (Internal Combustion Engine) vehicles, and explore what impacts electric car prices so that you can make informed buying choices.
What is the depreciation rate in the automotive industry?
We’re starting with the numbers. Most vehicles lose around 20% of their value within the first year, and their worth gradually decreases in the following years.
Here’s how depreciation typically unfolds, according to Motorway:
- Year 1: 15–35% depreciation
- Year 3: 40–60% depreciation
- Year 5: 60–70% depreciation
- Year 8–10: 80%
This means that a 2022 Volkswagen Golf 1.5 TSI, originally bought for €30,000, would typically lose 40–60% of its value after three years.
By 2025, its resale price would likely fall between €12,000 and €18,000, depending on mileage, condition, and market demand.
Note that depreciation isn’t necessarily bad—it can actually help used car traders. Faster depreciation means that buyers who couldn’t afford a new EV can get one at a lower price, increasing demand in the second-hand market.
All in all, losing vehicle worth is normal, but only to a certain, expected extent. We’ll now see how electric car depreciation compares to petrol and diesel cars and if they lose value faster.
Do EVs actually depreciate faster than petrol and diesel cars?
Only ten years ago, the answer to this question would have been a clear "yes". Early EVs used to depreciate quickly because of:
- battery concerns
- limited charging infrastructure
- rapid tech advancements making older models outdated.
However, as battery life improves, charging networks expand, and second-hand EV demand increases, their resale values are becoming more stable. So, EVs don’t depreciate as quickly as before.
But do EVs still depreciate faster than traditional cars? Let’s compare the numbers.
Average depreciation rates by vehicle type
With all fuel types, depreciation varies by model and market demand. But on average, here’s how this is how vehicle values typically decline over time.
Petrol and diesel cars follow a steady depreciation curve, losing around 40–60% of their value by year three.
In contrast, EVs depreciate more quickly in the first years. They’ll often lose 50–60% of their value by year three. More precisely, an iSeeCars analysis of 1.1 million vehicle sales between November 2022 and October 2023 found that, on average, EVs lose 49.1% of their value within five years, which is 10% more than the market average.
Based on iSeeCars data, we can say that while EVs still lose value faster overall, the gap between electric and traditionally fueled cars is starting to narrow.
There’s another category worth mentioning: luxury EVs.
Luxury EVs and early-generation models tend to lose value the fastest, while mainstream models from brands like Tesla and Volkswagen are holding their value better in the used market.
The key takeaway? EVs have historically depreciated faster, but that’s changing. As demand for used electric cars grows and battery technology improves, more models are holding their value better.
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What impacts the value of used electric cars?
Some EVs hold their value better than others. Here are the factors that make the most difference.
Factor #1 - Battery health
A well-maintained battery keeps an EV’s range high and resale value strong. The best thing an owner can do is to avoid frequent fast charging and extreme temperatures as these can speed up battery wear, lowering its worth.
Factor #2 - Driving range
Models with a higher driving range retain their value better. So, while stocking your dealership, make sure you prioritize EVs with higher range figures, as buyers are willing to pay more for the added convenience.
Our guide on the best used EVs includes a section on top models with the longest battery life, so check it out to find the best options for your inventory.
Factor #3 - Brand reputation
Well-known brands like Tesla and Volkswagen tend to hold value better than lesser-known or early-generation EVs. Strong reputation often equals strong resale.
Factor #4 - Charging infrastructure
Used EVs sell better in areas with good charging networks, making them more practical for buyers. A lack of public chargers can hurt resale value.
Factor #5 - Market dynamics
Government incentives, price cuts on new models, and shifts in supply and demand can impact how much used EVs are worth. We’ll now take a look at the current state of the European used EV market.
What does the used electric car market look like in Europe?
The European used EV market has seen some shifts in recent years. While new car registrations declined by 2.6% in January 2025 compared to the same month in 2024, the EV market continues to grow, and battery-electric vehicles (BEVs) are gaining market share.
In January 2025, BEVs made up 15% of all new car sales, which is up from 10.9% in January 2024.
Image source: ACEA
The rise in market share means that more EVs will enter the second-hand market in the coming years, increasing supply and offering more options for used car buyers.
When it comes to specific countries, the three largest markets are leading the way in EV adoption. Germany, Belgium, and the Netherlands collectively make up 64% of BEV registrations, showing strong demand.
Buy ex-lease EVs and stay on track with customer trends!
Let’s go over the key points. First, EV depreciation isn’t as steep as it was before, thanks to improvements in battery technology.
Second, the demand for both new and used electric vehicles in Europe is on the rise. What does that mean for you?
Stocking ex-lease EVs can be a smart move. These vehicles are well-maintained, often come with service history, and appeal to buyers looking for affordable electric options.
As demand for EVs grows, keeping the right models in stock will help you stay ahead of the market and maximize profits.
