The Rapid depreciation of Electric Vehicles: A Deep Dive

A recent study in the united States has shed light on the depreciation rates of new vehicles, revealing a important disparity in value retention. The study indicates that cars can lose anywhere from 19.5% to a staggering 72.2% of their initial value within the first five years of ownership.This depreciation is influenced by various factors, including brand reputation, maintenance costs, and market demand.

Notably, electric vehicles (EVs) exhibit a steeper depreciation curve compared to their gasoline-powered counterparts.The study, conducted by ISEECARS, found that EVs depreciate at an average rate of 58.8% over five years, substantially higher than the overall average of 45.6% for all vehicles. This trend raises concerns for EV owners and potential buyers alike, impacting the total cost of ownership and resale value.

several factors contribute to the rapid depreciation of EVs. Technological advancements in battery technology and charging infrastructure lead to newer models offering improved range, faster charging times, and enhanced performance. this makes older EV models less desirable, driving down their resale value. Additionally, government incentives and tax credits for new EV purchases can further depress the used EV market.

Electric cars have lost an average of 58.8 percent of their value in five years, which is significantly more than the total average for all cars of 45.6 percent.

ISEECARS Study, 2025

Luxury Cars and Depreciation: A Costly Affair

While EVs dominate the list of vehicles with the highest depreciation rates, luxury cars also experience significant value loss. High-end vehicles often come with premium features and advanced technology,which can become outdated or expensive to maintain over time. Furthermore, the higher initial purchase price of luxury cars means that the absolute dollar amount lost to depreciation is often significant.

The Jaguar I-Pace, an electric SUV, tops the list with a dramatic 72.2% depreciation, equating to a loss of $51,953 in value over five years. Surprisingly, the BMW 7 Series follows closely, losing 67.1% of its value, or $65,249. Other luxury models in the top five include the Tesla Model S (65.2%), Infiniti QX80 (65%), and Maserati Ghibli (64.7%).

The presence of both electric and luxury vehicles at the top of the depreciation list highlights the combined impact of technological obsolescence and high initial cost on resale value. Owners of these vehicles should be aware of the potential for significant value loss and factor this into their long-term financial planning.

Sports cars and Value Retention: The Exception to the rule

In contrast to EVs and luxury cars, sports cars tend to hold their value remarkably well. These vehicles often appeal to enthusiasts and collectors, creating a strong demand in the used car market. Limited production numbers, iconic designs, and performance capabilities contribute to their enduring appeal and higher resale values.

The Porsche 911 leads the pack with the lowest depreciation rate, losing only 19.5% of its value over five years. The Porsche 718 Cayman comes in second,with a depreciation rate of 21.8%. Other sports cars with strong value retention include the Chevrolet Corvette and Ford Mustang.

The Toyota Tacoma also stands out as a non-sports car with excellent value retention, depreciating only 26% over five years. This is likely due to its reputation for reliability, durability, and strong resale value in the truck market. The Honda Civic, known for its fuel efficiency and affordability, also demonstrates a lower-than-average depreciation rate.

Top 25 Cars with the Highest 5-Year Value Loss

1. Jaguar I-PACE (72.2%, $51,953)
2. BMW Series 7 (67.1%, $65,249)
3. Tesla Model S (65.2%, $52,165)
4. Infiniti QX80 (65.0%, $53,571)
5. Maserati Ghibli (64.7%, $70,874)
6. BMW Series 5 (64.7%, $47,457)
7. Nissan leaf (64.1%, $18,043)
8. Maserati Levante (63.7%, $64,991)
9. Tesla Model X (63.4%,$53,846)
10. Cadillac Escalade ESV (62.9%, $56,996)
11. Land Rover Range Rover (62.9%, $67,858)
12. Audi A8 L (62.7%, $57,724)
13. BMW Series 5 (61.7%, $36,208)
14. Audi Q7 (61.6%,$37,256)
15. Infiniti QX60 (61.5%,$30,888)
16. Cadillac Escalade (61.0%, $53,458)
17. Audi A6 (60.9%, $35,401)
18. Land Rover Revelation (60.9%, $36,635)
19. Mercedes-Benz S-Class (60.7%, $71,460)
20. Audi A7 (60.5%, $43,535)
21. Tesla Model Y (60.4%, $36,225)
22. Lincoln Navigator L (60.3%, $62,069)
23. Porsche Taycan (60.1%,$59,691)
24. Nissan Armada (60.0%, $33,914)
25. Ford Expedition MAX (60.0%,$36,692)

Top 25 Cars with the Lowest 5-Year Value Loss

1. Porsche 911 (19.5%, $24,428)
2. Porsche 718 Cayman (21.8%, $15,851)
3. Toyota Tacoma (26.0%, $8,217)
4. Chevrolet Corvette (27.2%, $18,557)
5. Honda Civic (28.0%, $6,987)
6. Chevrolet Camaro (28.0%, $8,653)
7. Toyota Tundra (29.1%, $11,659)
8. Ford Mustang (29.2%, $9,325)
9. Porsche 718 Boxster (29.6%, $22,155)
10. Toyota Corolla Hatchback (30.1%, $7,156)
11. Subaru WRX (30.2%,$9,424)
12. Toyota RAV4 (30.9%, $9,233)
13. Toyota 4Runner (31.3%, $12,753)
14. Toyota Corolla (31.4%, $7,004)
15. Subaru Crosstrek (33.0%, $8,511)
16. Subaru Impreza (33.4%, $7,889)
17. chevrolet Corvette (33.7%, $25,343)
18. Jeep Wrangler (33.9%, $10,888)
19. Honda HR-V (34.0%, $8,640)
20. Ford Ranger (34.7%, $11,472)
21. Honda Accord (34.9%,$9,879)
22. Toyota Prius (34.9%, $9,908)
23. Honda CR-V (35.2%,$10,602)
24. Subaru WRX (35.5%, $12,702)
25. Toyota Camry (35.5%, $9,388)