Do electric cars retain their value compared to their thermal counterparts? Here is an overview of their discount on the second-hand market.
The discount is one of the most problematic points related to vehicle ownership, and the electric car is not spared from this phenomenon, quite the contrary.
The discount of an electric car depends on several parameters
Indeed, as soon as a new car leaves the dealership's threshold, it begins to lose value : this is the discount. Over time, mileage as well as wear and tear further reduce its potential resale price on the second-hand market: in Europe, most cars lose around 50% of their value during the first three years. For electric cars, additional factors come into play, such as battery condition, technological advances, but also government policies.
In fact, the tax policies have a significant impact on the discount of an electric car, by influencing the purchase prices as well as the residual values of cars, and therefore the second-hand resale price. External factors such as economic downturns or slowing production also have an impact: we were able to observe this recently, during the Covid-19 crisis which led to shortages of components, which increased the value used cars.
A different trend from thermal vehicles?
Unlike thermal cars, electric cars tend to suffer from faster discountmainly due to rapid advances in battery technology: new models quickly arrived with better range and charging capabilities, making older electric vehicles lose their value. The depreciation of electric vehicles is also linked to the degradation of the battery: despite a warranty that can sometimes reach 8 years, electric cars still worry motorists about the longevity of their batteries.
Supply and demand also play a role in the discount: in recent years, we have seen a sharp increase in sales of new EVs, which has therefore increased the supply on the second-hand market, consequently lowering prices. The arrival of more affordable models, particularly from China, has also contributed to this trend. In addition, recent price reductions for new electric vehicles by automakers have also had a considerable impact on second-hand prices.
These different parameters give rise to concerns about long-term stability of the value of used electric vehicles. Currently on the European market, 100% electric vehicles depreciate more quickly than thermal cars, while hybrid models maintain a much better residual value over time.
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