As a relatively new technology within the local market, those looking to add an electric vehicle (EV) to their garage will want to know the range, charging time, running costs, insurance costs and resale value of these products. Today, we will attempt to answer whether EVs depreciate more than traditional internal combustion engine vehicles (ICE).
Related: How does the driving experience of an EV compare to an ICE car?
What does the data say?
A study from ISeeCars.com states that EVs have the worst resale value of all propulsion types, with the average percentage loss across all vehicles in the survey coming to around 39%. In comparison, the average EV had lost nearly 50% of its value in 5 years.
Why is this the case?
Tech advancements
In many ways, the automakers are partly to blame for the poor resale of EVs, with news from their respective PR departments always promising to introduce better battery technology with improved range and charging times. As we have seen in the smart device space, where the anticipation of a newer, better model drives down the outgoing model's price, so too is the case with EVs, it would appear. This will likely improve as the technology evolves to a point of diminishing returns, as we have seen with ICE vehicles. Then, all-electric vehicles will likely achieve parity in terms of residual values.
Battery life and replacement costs
The battery is a crucial component in electric cars, and concerns about its lifespan and replacement costs influence resale values. Advances in battery technology increased durability, and decreasing replacement costs were expected to positively impact electric car resale values.
Market acceptance
As electric cars become more widely accepted and integrated into the mainstream automotive market, consumer confidence in their long-term viability will increase, potentially boosting resale values.
Consumer perception
Consumer attitudes towards electric vehicles play a significant role. Positive perceptions regarding environmental benefits, lower operating costs, and improved charging infrastructure could positively impact resale values.
Comparing our listings
The only EVs that we could find that were five years old were the Jaguar I-Pace and BMW i3. There were four examples of the i3, two of each REX variant and three i-Pace models in HSE guise with which we could compare resale values. As we can see from the data, the small BMW has held its value well, while the more substantial Jaguar matches the data quoted earlier with remarkable accuracy!
2019 BMW i3 s REX
Price when new: R799 100
Price now: R589 000
Value retained: 73.7%
2019 BMW i3 REX
Price when new: R740 700
Price now: R599 900
Value retained: 81%
Jaguar I-Pace HSE
Price when new: R1 829 880
Price now: R900 000
Value retained: 49.1%
