Electric vehicles and conventional ones have more similarities than differences. That’s why it is only normal for one to wonder if depreciation is a similarity or a difference. If it is the latter, how do electric cars differ from the other vehicles in terms of deprecation? Just like any other vehicle out there, EVs are assets. Assets fall into two broad categories, which are those that appreciate and the ones that depreciate. Other than a few car models, usually the classic and rare types, all the other vehicles depreciate with time, and even the electric ones are not an exception. After all, upon use, they change from new to second-hand, which speaks volumes for almost all markets. On the other hand, watches and houses appreciate with time.
In general, almost every car’s value drops at a certain percentage. This residual value should be as high as possible, or else the asset won’t be worth investing in, no doubt. It is important to note that a car’s mileage plays a massive role in determining its value. On average, a vehicle travels for 36,000 miles within three years. Within that period, the car’s value drops by 60%. That means the residual value will now stand at 40% of its initial price.
It is no secret that’s bad for the owner. Interestingly, it is suitable for the buyer since he will buy it at quite a low price. Equally important, the rate at which it will depreciate at going forward will be relatively low hence an ideal asset. However, one must also note that the value is not the same for all vehicles.
Nevertheless, as much as both camps, electric vehicles and petrol or diesel vehicles, depreciate, the latter depreciates at a lower rate. After all, it will lose slightly higher than half its value, 52%, after 36,000 miles. Three years after its purchase, the value of an electric value will be 48% of the original one on average.
One would wonder why classic cars would appreciate, whereas all their counterparts are depreciating. The reason is the difference in the market. Most of these rare cars will be bought by collectors and not consumers. Keep in mind that it is possible for your vehicle still to have a lot of value after three years. All you have to do is to ensure that you don’t drive it too much within that period.
Another thing that can be of help is regular maintenance. Ensure that the exterior has no scratches, whereas the interior should be smoke-free and, most importantly, clean. Kerbed wheels are not an option either if you want your car to maintain as much value as possible.