Do Electric Cars Depreciate Faster Than Gas-powered Vehicles?

Year-over-year, new electric car prices were up 54.3% in 2022 and remained high while gas-powered vehicles only increased in price by 10.1%. Prices remained high in 2024 too. However, used electric vehicles prices dropped, making them much more affordable for many people. In fact, the average price of a used EV at the close of 2024 was just under $30,000.⁽¹⁾

It used to be true that electric vehicles (EVs) depreciate faster than gas-powered cars but that’s not necessarily the case anymore, due to technological advances that have led to the creation of more powerful EV batteries. Also, demand pushes prices higher, and because new EVs are often impossible to afford for some people, a used EV is not.

Prices on used EVs were stable towards the end of 2024; In early 2024, they were down 30% but in the second half, prices only depreciated by 18%, good news for electric car owners.⁽¹⁾

For people concerned about the resale of an EV they own, it’s important to remember that some cars depreciate more than others, even amongst EVs. Let’s take a closer look at electric vehicle depreciation and what you can do about it.

On This Page

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  Do All EVs Depreciate the Same?

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  Top 10 Depreciating EVs of 2024 (1 to 5 Years Old)

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  Why Battery Protection Matters for an Electric Vehicle’s Value

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  8 Ways To Lengthen the Lifespan of Your EV Battery

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  Electric Vehicle Battery Replacement and Cost

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  What Is an Electric Vehicle Vibration Battery Test?

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  Used Electric Vehicle Tax Credit 2024

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  Electric Vehicle Depreciation FAQs

Do All EVs Depreciate the Same?

The answer to whether or not all EVs depreciate at the same rate is a firm no. However, we can say that most used EVs are depreciating less than they were at the start of 2024.⁽¹⁾

Even though Tesla continues to dominate the sales charts in the electric car market for new and used vehicles, Teslas depreciated the most in resale value, as you can see in the chart below.

Data from iSeeCars study.⁽¹⁾

Below are more insights on different car makers, to see how EVs compare in resale value within a five-year span. The best value electric vehicles are the ones that do not depreciate quickly, because if you decide to sell the car, you’ll get more of the money you put into it back in your wallet.

Top 10 Depreciating EVs of 2024 (1 to 5 Years Old)

Data from iSeeCars study.⁽¹⁾

Why Battery Protection Matters for an Electric Vehicle’s Value

The value of an EV relies most on the safety and reliability of its battery. If the battery is not in good shape, the amount you can sell it for diminishes tremendously.

EV battery protection can prevent electrical and mechanical problems. EV manufacturers must use any of the following materials to ensure the longevity and proper functioning of the battery: mica, intumescent materials and ablative coatings. There are also third party companies that sell accessories to further protect your battery.⁽⁴⁾

More importantly, there are steps you can take to preserve the life of your battery. Below are eight important things you can do to keep the juice in your EV battery for a longer amount of time.

8 Ways To Lengthen the Lifespan of Your EV Battery

1. Park in the Shade. If your car gets hot from the sun or any other element, its internal temperature control system will drain the battery to get the temperature down. It’ll also do the same in the cold, which is why people who live in states with colder winters complain of a loss of charge in the cold. If it’s cold out, don’t park in the shade, and try to get full light on the vehicle.
2. Don’t Keep Your EV Fully Charged. Keep your car at around 80% charge or lower to maximize the life of the EV. Many people wrongly assume that to keep the battery at 100% will lengthen the lifespan, the truth is the opposite.
3. Don’t Use Fast Charge. Fast-charging an EV degrades 10% more over an eight year period. It’s better to use standard charging regularly and fast charge only for emergencies. DC fast chargers are great, but they reduce the lifespan of an EV battery a lot!⁽⁵⁾
4. Store the EV at the Right Charge. Ideally, you’re equipped with a timed charger. Set it to charge the vehicle between 25 and 75%. Anything lower or higher will degrade the battery. This is important to do before a long trip or any time you’re not using the vehicle for longer periods of time.⁽⁵⁾
5. Decrease the Frequency of Charging. The more often you charge, the more it wears on the battery. Instead of charging each time it slips below 80%, for instance, allow the charge to fall lower and then avoid fully charging the battery each time you do charge.⁽⁶⁾
6. Check for Updates Regularly. EVs need over-the-air (OTA) updates to keep the vehicle functioning correctly. The carmaker will send software and OTA system updates to EVs. Keep an eye out to make sure they get completed.
7. Have Regular Maintenance Checks. Have your vehicle checked out in detail, especially the battery (more on battery testing further down).
8. Stop Speeding. Quick acceleration drains the battery and results in a shorter lifespan.

Electric Vehicle Battery Replacement and Cost

The electric vehicle industry has come a long way since the first EV appeared on the market almost 15 years ago, the Nissan Leaf. In its infancy, it used to be that batteries needed to be replaced often. However, these days, only 1.5 percent of EVs need a battery pack replacement.

New batteries last an average of 12 to 15 years, up to 200,000 miles, in moderate climates and between eight to 12 years in very cold or very hot climates.⁽⁷⁾ However, it’s important to buy a car from a car maker that offers a battery pack warranty for at least 8 years or 100,000 miles (most do).⁽⁷⁾

Aside from daily wear-and-tear that degrades a battery, replacing one may be necessary after an accident, and it won’t qualify for the warranty if the accident was your fault. Of course, if it was another driver’s fault, their liability car insurance coverage will pay to replace your battery at no cost to you.

If the battery has a flaw in production, the manufacturer will issue a recall, in which case they will cover the cost of a replacement EV battery.

The cost of EV replacement batteries varies anywhere between $7,000 to $30,000, depending on the vehicle.. According to the Department of Energy, the cost of a lithium-ion EV battery fell 89% in 2022 compared with 2008.⁽⁶⁾

Costs for EV batteries are dropping overall, as manufacturers are now recycling old batteries to make new ones. Recycling can recover as much as 95% of the materials needed to produce new batteries.⁽⁶⁾

What Is an Electric Vehicle Vibration Battery Test?

In your owners manual, the manufacturer of the car will tell you where you need to go for an EV battery test. Usually, it’s advised that you have the battery tested at specified intervals.

Diagnostic tests may include an EV vibration battery test, which basically allows the technician to see how the battery performs in natural driving conditions. Temperature and humidity testing will also be performed when checking for durability.

Used Electric Vehicle Tax Credit 2024

If you bought a used electric vehicle in 2024, the tax credit is $4,000 or 30% of the sale price of the vehicle, whichever is lower. If you spent less than $13,333, you’ll get partial credit. For example, if you bought a used EV for $10,000, your tax credit is $3,000.⁽⁸⁾