?If you're interested in going green with your next car purchase, you probably have some questions. Some drivers who shop at the Hall | MileOne Autogroup family of dealerships have questions about depreciation. Do electric vehicles and hybrids hold their value?
The rate of depreciation can vary based on a few factors, but let's take a closer look at the general situation in the used electric vehicle market. Here's what you should know before you buy.
Rate of EV Depreciation
All vehicles decline in value once they leave the lot, but do EVs depreciate at a different rate? Unfortunately, they do. In many cases, electric vehicles depreciate faster than conventional vehicles.
There are a few reasons for this. One issue is that electric cars are still pretty new. That means that they don't have the widespread popularity that would make for a good used car market just yet.
Compounding the problem is the fact that drivers who would most likely be interested in electric cars are the “early adopter” type. This means that they want the latest and greatest thing, so they’re more likely to buy a brand-new EV with the latest advancements over a pre-owned electric car, even though a used car has a lot of life left in it.
Another issue is that current incentives do encourage people to buy new electric vehicles. You get a $7,500 federal tax credit for buying a brand-new EV, and some states and cities even offer extra incentives for buying a green car or installing a charging station. The purchase of used EVs doesn't come with the same kinds of incentives.
This used EV market could change in the future, but for now you shouldn't expect an electric vehicle to hold its value better than a gasoline-powered model.
Go Green with Our EVs and Hybrids!
A pre-owned EV will still save you money on fuel, and it’s still good for the planet we share. If you want to learn more, visit our new car dealership serving Norfolk, VA. We can help you find an electric vehicle that you'll love!