It’s an axiom to say “EVs depreciate quickly,” but the numbers show exactly how bleak it is
EVs have earned a reputation for losing value that’s hard to shake. But a recent study from iSeeCars reveals that cars and SUVs relying on battery power can lose nearly three-quarters of their value in half a decade, numbers that rival (and in some cases surpass) the highest tier of gas-powered luxury vehicles. This is good news for shoppers on the hunt for a well-used EV, but current owners might not share the sentiment.
Tesla Model 3 Tesla
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Tesla, largely, fared the worst
The iSeeCarsstudy comprised over 800,000 five-year-old used vehicles sold between March 2024 and February 2025, determining exactly how much value each vehicle had lost. The leader of the pack across all vehicles was, naturally, an EV—the Jaguar I-Pace. Unsurprising as it may be that a floundering brand’s least popular EV offering depreciated the most, it’s still surprising to see a car lose 72.2 percent of its value over five years. According to the study, the average price difference from the original MSRP was an incredible $51,953.
While the Jaguar might be an outlier, it’s not as much of a jump from vehicles like the Tesla Model S, which on average lost 65.2 percent of its value, representing a difference of $52,165 from the original MSRP. In fact, most of the Tesla lineup is prominently featured in the top 25 worst depreciating vehicles. The Model X lost 63.4 percent of its value, while the Model Y fared slightly better, losing just $36,225 on average, or 60.4 percent. Balancing out the losses are the Tesla Model 3, which lost 55.9% of its value, and the Hyundai Kona Electric, which lost 58% of its value. Both are still far above the average across all vehicles, which the study claims is 45.6 percent.
Tesla
Other electrified vehicles fare better, according to the study
The news isn’t all bad when it comes to electrification. Many hybrid vehicles outperformed the average vehicle, with standouts like the Toyota RAV4 Hybrid only losing 31.2 percent of its value over five years. Similarly stellar performers include, well, the entire Toyota lineup: Prius, Corolla Hybrid, Prius Prime, Highlander, and Camry models occupy the top spots, with the worst performer among them only losing 39.8 percent of its value. Honda’s Accord and CR-V hybrids outperformed the average across all vehicles but underperformed compared to the hybrid average of 40.7 percent value lost over five years. Both Hondas lost around $14,000 in value, representing a 41 percent drop.
Final thoughts
As new car prices continue to, generally, climb, heavily depreciating EVs might be a great deal for prospective buyers. It’s also one way that the electric car continues to gain market share, even though new EV sales show signs of slowing down. Certainly, charging infrastructure is still improving—as witnessed by the explosion of chargers dominating significant markets like California. That said, don’t expect to make money when it comes time to sell. Heavy EV depreciation is at least partially driven by constant improvements in battery life, range, and power, and there’s no end in sight.
