…By Lola Smith for TDPel Media. A new study commissioned by ChooseMyCar.com has found that electric vehicles (EVs) depreciate in value at a much faster rate than petrol vehicles, losing more than 50% of their value in just three years.
The research compared the value of new cars in 2020 against their current value in 2023, with EVs losing an average of 51% of their purchase value, compared to just 37% for petrol vehicles.
This equates to a loss of £15,220 for EV owners and £9,901 for petrol vehicle owners.
The research also found that the higher the initial purchase price, the greater the loss in value, with the Tesla S model losing £25,000 in value in three years.
The research compared new car prices in 2020 against the average price of cars listed by private sellers or car dealers in 2023.
ChooseMyCar.com also looked at popular car buying websites to compare a ‘buy now’ price.
The researchers found that even entry-level EVs, such as the Nissan Leaf, were seeing losses of £13,000, and that entry-level cars were often seeing larger percentage decreases in their value, with the Hyundai Ionic losing 67% of its worth.
Advertisement
The research also found that the trend of higher rates of depreciation is expected to continue, according to market experts.
According to the research, the market correction that has seen new EVs lower their initial purchase price is partly responsible for the higher rates of depreciation.
However, the researchers noted that the trend is expected to continue.
The study found that the Government’s grant, which offered funding of up to 75% towards the cost of installing electric vehicle smart charge points at homes across the UK, helped incentivise car owners to switch to an EV, but the hundreds of pounds saved now look insignificant in comparison to the thousands of pounds lost in value.
The research identified the EV models with the biggest depreciation, with the Hyundai Ionic seeing a drop of 67%, followed by the BMW i3 with a drop of 64%, the Renault Zoe with a drop of 61%, the Nissan Leaf with a drop of 58%, and the VW ID3 with a drop of 55%.
The Tesla Model S saw a drop of 46%, and the Tesla 3 saw a drop of 43%.
Founder of ChooseMyCar.com, Nick Zapolski, commented that the research shows another blow for EV owners, as EVs themselves are not holding their value, and the price of electricity has increased, making running the cars less economical than before.
The installation of home charge points is expensive, and there are concerns about the availability and reliability of public charge points.
Advertisement
Furthermore, some of the initial incentives to encourage EV ownership are being discontinued, such as lower tax and free entry into ULEZ zones.
Zapolski called on the Government to take action if it wants to continue pushing the idea of EVs onto consumers, as currently, the cons of EV ownership threaten to outweigh the pros.
About the Author:
Lola Smith is a highly experienced writer and journalist with over 25 years of experience in the field. Her special interest lies in journalistic writeups, where she can utilize her skills and knowledge to bring important stories to the public eye. Lola’s dedication to her craft is unparalleled, and she writes with passion and precision, ensuring that her articles are informative, engaging, and thought-provoking. She lives in New York, USA.
Share on Facebook «||»
Share on Twitter «||»
Share on Reddit «||»
Share on LinkedIn
Read Related News On TDPel Media
Advertisement
California Leads America’s ZEV Market, Surpassing 1 Million Electric Vehicles Sold
The data show that California’s ZEV market is leading the nation in every category, including support for low-income EV consumers California’s 1 million electric vehicles...
Battery Electric Vehicles Secure 16% Market Share in UK New Car Registrations for July
In July, the UK’s new car market saw remarkable growth, with one new battery electric vehicle (BEV) being registered every 60 seconds. Advertisement According to...
Biden’s Support for Electric Vehicles Sparks Controversy in Michigan Swing State
Tensions Rise Over Electric Vehicles in Michigan As the 2024 presidential battle takes shape, the issue of electric vehicles (EVs) has become a contentious point...
White Paper on electric vehicles released
South Africa – Trade, Industry and Competition Minister Ebrahim Patel has released a White Paper that outlines a comprehensive electric vehicle (EV) roadmap for South...
hinese EV Invasion – Explorer No 1 Unloads 7,000 Electric Vehicles in Dutch Port
Andrew Neil, writing for the Daily Mail, sheds light on the unfolding economic scenario driven by China’s strategic moves. The focus is on a colossal...
Charging infrastructure for electric vehicles (EVs) in UK facing significant challenges due to limited mobile phone connectivity
A recent report suggests that the charging infrastructure for electric vehicles (EVs) in the UK is facing significant challenges due to limited mobile phone connectivity....
Michael Froman’s Speech, The Value of Conversations on Policy, Morality, and Research in the Legal System
Opening Remarks and Fond Memories Thank you, Josh, for the kind introduction, I appreciate your discretion in not mentioning our time together at the Federal...
Elon Musk and Donald Trump Engage in Electric Showdown: Former President Criticizes Tesla CEO’s Views on Electric Cars in Mar-a-Lago Meeting
Former President Donald Trump disclosed that he may not gain support from Elon Musk in his potential political endeavors due to their differing views on...
Benling India See EV Uptake Faster than Expected and Repose Confidence in a Strong EV Outlook for 2022 and Beyond – ED and CEO, Mr. Amit Kumar
Electric Vehicles or EVs, as they are now commonly referred to, are an important resource for battling pollution and improving the lives and lifescapes of...
Liquid Intelligent Technologies Partners With Multi-Cloud Platform Teridion To Deliver Faster Internet Connectivity In Africa And Other International Markets
Liquid Intelligent Technologies (www.Liquid.Tech), a business of Cassava Technologies, a pan-African technology group, has announced a strategic partnership with Teridion, a superior cloud-based global connectivity...