EVs are depreciating a bit faster than people predicted and definitely faster than EV makers would like.
That’s probably bittersweet news for automakers and EV owners, but it’s a great opportunity for people who just want to buy a great car at a fair price.
Some of these EVs cost a fortune when they’re new but are relatively affordable in the secondary market.
But there’s something very important to bear in mind.
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The likely reason why EVs are depreciating faster than gas cars
There are a lot of theories floating around as to why electric cars depreciate faster than internal combustion cars.
People who don’t like EVs say it’s because they’re all a bit samey-samey.
They argue that a V8 doesn’t feel (and sound) like a V12 or a V10 or a flat-six, whereas electric engines all deliver performance in the same way, just more or less of it depending on how powerful the car is.
That’s a fair point, if a bit subjective, but there’s another related argument that’s more objective and potentially true.
Electric cars heavily rely on software, just like smartphones, and nothing ages faster than software.
It’s the reason why all iPhones are considered vintage after five years and obsolete after seven.
In other words, EVs are depreciating faster than gas cars simply because they’re entirely based on technology that ages faster.
The one thing would-be buyers should bear in mind
A lot of people are turning to the pre-owned market to buy high-end EVs like the Porsche Taycan or even the Ford Mustang Mach-E because they’re relatively inexpensive to buy used.
A while back, we covered the story of a guy who bought a brand-new Ford Mustang Mach-E for $72,590 but was told it was worth just $31,000 two years later.
Then there’s the Taycan, which can easily cost north of $150,000 (or $230,000 for the Turbo GT) when bought new but can sometimes be had for less than $50,000 in the pre-owned market.
However, as several Taycan owners found out the hard way, some EV makers are still charging a premium for a service.
One Taycan owner in particular was shocked when he found out his new Taycan cost him more to maintain than his old Boxster.
In theory, EVs should be cheaper to maintain because they’ve got fewer moving parts.
In practice, in some cases, EV makers are still charging you more for the brand.
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