Electric Vehicles with the Highest Predicted Resale Value

The Truth Behind The Terrible Resale Value Of Electric Cars

Depreciation is like taking money out of your wallet, and setting it on fire every single day. You don't see it as a loss in the beginning, but after a while, you'll end up paying out the same amount you saved previously by not using gas. So, what causes EVs to depreciate?

Surprisingly, one of the main factors that leads to depreciation are incentives given to new EV owners to help them buy their vehicle in the first place. Since 2010, the U.S. government has offered tax credits up to $7,500 for anyone wishing to purchase an electric vehicle (via CNBC). While this is good, it causes the price of the vehicle to tank when it's resold.

The second factor is demand. Although interest in electric cars is rising swiftly, that has not topped sales of regular fuel-powered cars. Buyers still want gas-powered cars, although this is predicted to flip in the coming years (via Axios).

The third factor is battery capacity.EV batteries are notoriously for having a limited lifespan, which affects a car's value if it is not kept in pristine condition. Around the eight-year mark, most electric car batteries have degraded and need to be replacedwith a new one, according toForbes. Finally, changing technology has to be taken into account as well.Rapidly evolving EV technology makes the price go down and accelerates depreciation for older models, each time a new model is released.

Electric cars ranked by resale value

How to score a cheap eco-friendly ride

We'd guess that a sizable portion of the U.S. population would consider an electric car if they could find one at the right price. Thing is, technology is expensive, and early adopters often bear the brunt of the expense. That's where lightly used electric vehicles come into play. As you'll see as you scroll through this list of electric cars ranked by depreciation after three years, which we put together using data provided by iSeeCars.com, some truly interesting electric cars have fallen rapidly in value after just three years of ownership.

Categorically, electric vehicles depreciate more than the average vehicle because resale values take into account the $7,500 federal tax credit and other state and local credits that were applied to these vehicles when they were bought new, said iSeeCars.com CEO Phong Ly. Because the technology of EVs changes at a rapid pace, obsolescence also plays a role in their dramatic depreciation as well as consumer range anxiety and lack of public charging infrastructure.

But not all electric cars depreciate so rapidly. Click on the image above to see the rankings. And if you're not interested in electric vehicles, click here for a list of the biggest depreciators powered by more traditional drivetrains.