It's no secret that any brand-new vehicle will depreciate from the moment it is driven out of the dealership.
Typically, after 3 years a petrol or diesel vehicle will lose around £4600 a year. How do electric vehicles compare to this?
How much do EVs depreciate?
Let's cut right to the chase.
Electric vehicles depreciate up to 20% slower than petrol and diesel vehicles. ICE vehicles can lose up to 67p per mile, compared to 55p for EVs according to LeaseLoco.
After 3 years, an EV will have retained around 50% of its value, with an ICE vehicle falling short at less than 40%.
Do specific brands depreciate less?
Since luxury brands such as Tesla have introduced their own EVs, certain brands have begun to hold their value better. iSeeCars reported that the world-renowned Model 3 loses just 10.2% after 3 years.
As demand increases, the rate of depreciation will improve even more across the board for electric vehicles. Furthermore, as we see the introduction of a second-hand market for EVs, the rate of depreciation could be impacted further.
Can you reduce the impact of depreciation?
Simply put, the more mileage you do, the more the battery and overall EV will be impacted.
The average battery in an electric vehicle will be warranted for 100,000 miles with a projected lifespan of 200,000 miles. If you damage the battery and range of your electric vehicle greatly due to over or undercharging, harsh acceleration and braking, constant long journeys, and extreme weather conditions, you may see a faster rate of depreciation.
Smart charging habits are a good way to maintain the health of your businesses' electric fleet, so contact Charge And Recharge for information on which commercial car charger is right for you.