While the competition is fierce to cut the price of electric vehicles in the auto market, some models have residual values that are nearly half the price of a new car after one year, making it much more attractive to buy used ones.
According to a recent report by iSeeCars, the average one-year depreciation rate for gas cars, hybrids (HEVs), and EVs as a whole was 12.8% ($5,778) compared to new ones. However, some EVs have depreciated by as much as 50%.
The model whose value plummeted was the Mercedes-Benz EQS with the largest depreciation rate, dropping $65,143, or 47.8% of its new price after one year.
The Nissan Leaf was the runner-up, down 45.7%, or $15,786, in one year, followed by the Kia EV6 at 33.3%, or $18,081.
The Hyundai Ioniq 5 dropped 32.9% ($16,805), and the Volkswagen ID.4 fell 32.9% ($15,609) to fourth and fifth place, respectively.
The Ford Mustang Mach E also depreciated 29.8% ($16,364), followed by the Chevrolet Volt EUV and Volt EV, which fell 28.2% ($9,151) and 28% ($8,633), respectively.
Experts recommend buying a used EV rather than a new one for this reason. Using the Kia EV6 as an example, TopSpeed recommended buying a year-old used car rather than a new one because it has a dynamic design, fast charging, advanced technology, and convenience features, but its residual value drops to about two-thirds of a new car just after one year.
It added that the Nissan Leaf, in particular, is one of the most affordable EVs on the market, but it loses nearly 46 percent of its value after one year, therefore recommending buying a used car that is not too old rather than new.
Tesla, on the other hand, had relatively low depreciation compared to other EVs. Models Y and X only lost 8.3% ($3,867) and 6.9% ($5,993) of their value, respectively, making it beneficial to buy new rather than used.
With the recent inventory buildup, the Model Y has seen a series of price reductions. With the $7,500 IRA tax credit, a new Model Y can be purchased for the price of a 1 to 2-year-old used one with around 15,000 miles or less, depending on the trim.
BY NAKI PARK, HOONSIK WOO [park.naki@koreadaily.com]
