12:34 pm, April 27, 2023
Hyundai’s Ioniq was today named as the EV with the biggest depreciation.
Research by Choose My Car found that the South Korean car, pictured at top, lost a shocking 67 per cent of its value in three years.
What’s more, the Tesla Model S dropped by an eye-watering £25,000 in value over the same period.
Choose My Car ranked EVs by comparing their prices as new in 2020 against their value now, based on the average price of cars listed by private sellers or car dealers.
The used car buying service, which works with more than 2,500 dealerships, also compared popular car-buying websites to look at a buy now price.
It said EVs had depreciated ‘at a staggering rate’ that has seen them lose more than half their value in just three years on average.
The study showed that on average EVs will lose 51 per cent of their purchase value from 2020 to 2023 versus 37 per cent for petrol vehicles.
This equates to a massive £15,220 loss for EV owners, while petrol vehicles lose £9,901.
And it found the higher the original purchase, the bigger the loss, with the Tesla Model S losing an enormous £25,000 in value in just three years.
But even entry-level vehicles such as the Nissan Leaf were seeing losses of £13,000.
In fact, the entry level cars often suffered larger percentage decreases in their value, with the Hyundai Ioniq losing a whopping 67 per cent of its worth.
It said this was partly down to a market correction that had seen new EVs lower their initial purchase price, but the trend of higher rates of depreciation is expected to continue, according to market experts.
EVs with the biggest depreciation on buy now price
Source: Choose My Car (buy it now price was taken by firm from popular sites like WeBuyAnyCar.com)
1: Hyundai Ioniq – 67% (buy now price: £11,000)
2: BMW i3 – 64% (£13,900)
3: Renault Zoe – 61% £11,355)
4: Nissan Leaf – 58% (£11,385)
5: VW ID.3 – 55% (£17,700)
6: Tesla Model S – 46% (£40,800)
7: Mini Electric – 44% (£15,400)
Joint 10th: Honda E – 43% (£16,000)
Joint 10th: Kia Niro – 43% (£20,700)
Joint 10th: Tesla Model 3 – 43% (£23,000)
11) Polestar 2 – 40% (£29,950)
Choose My Car founder Nick Zapolski said: ‘Our research shows yet another blow for EV owners, on top of many other issues that have come to light recently.
‘Not only are the EVs themselves not holding value, the price of electricity itself has zoomed up, meaning running the cars is not as economical as it once was.
‘Home chargepoints are expensive to install – if you even have the necessary driveway to allow that – and there has been an uproar about the availability and reliability of public chargepoints.
‘On top of that, recent decisions made by the government mean that some of the initial incentives to encourage EV ownership are being discontinued, such as lower tax and free entry into Ulez zones.
‘The government really needs to take action if it wants to continue to push the idea of EVs on to the consumer, as currently the cons of EV ownership threaten to outweigh the pros.’
EV price drops – the detail
