EVs Facing Heavier Depreciation than Gasoline Counterparts

August 14, 2015
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Black Book recently looked at the prices of a new Nissan LEAF vs. Nissan Versa; a Mitsubishi i-MiEV vs. Mitsubishi Lancer; Ford Focus Electric vs. Ford Focus; and a Chevrolet Volt vs. Chevrolet Cruze.

The electric car premium over a counterpart gasoline model for mainstream brands has pretty much disappeared for used vehicles from an average premium of $16,600 for new vehicles. In fact, in a few cases, a used electric model now costs less than its gasoline counterpart.

GOYLE
GOYLE

"On several of today's popular electric vehicles (EVs), the depreciation curve is very steep, largely driven by lack of consumer demand preferences for fuel-efficient models with current price of gas," said Anil Goyal, VP of Automotive Valuation and Analytics for Black Book. "Smaller cars have experienced heavier depreciation over the past 12-18 months, but it’s clear that the small mainstream electric vehicles are experiencing even heavier valuation drops."

Black Book Valuation Data on EVs vs. Gasoline Counterparts

(2012 New vs. Used)

Vehicle 2012 NEW Equipped Retail Electric Premium Effective Retail After Federal Incentive
Nissan Leaf SV 4D Hatchback $36,380 $20,287 $28,880
Nissan Versa SL 4D Hatchback $19,320   $19,320
       
Mitsubishi i-Miev ES 4D Hatchback $29,125 $19,887 $21,625
Mitsubishi Lancer ES 4D Hatchback $19,720   $19,720
       
Ford Focus Electric 4D Hatchback $40,387 $9,405 $32,887
Ford Focus SE 4D Hatchback $20,500   $20,500
       
Chevrolet Volt 4D Hatchback $40,431 $17,060 $32,931
Chevrolet Cruze LT 4D Sedan $20,144   $20,144

 

* Used Value as Percent of New Effective Retail after Federal Incentive

Vehicle 2012 Used Avg (7/15/15) Electric Premium Three-Year Retention*
Nissan Leaf SV 4D Hatchback $7,400 ($900) 26%
Nissan Versa SL 4D Hatchback $8,300   43%
       
Mitsubishi i-Miev ES 4D Hatchback $5,350 ($3,100) 25%
Mitsubishi Lancer ES 4D Hatchback $8,450   43%
       
Ford Focus Electric 4D Hatchback $10,250 $1,150 31%
Ford Focus SE 4D Hatchback $9,100   44%
       
Chevrolet Volt 4D Hatchback $10,500 $650 32%
Chevrolet Cruze LT 4D Sedan $9,850   49%

* Used Value as Percent of New Effective Retail after Federal Incentive

Comments

  1. David Sharp [ August 17, 2015 @ 01:40PM ]

    A great article. Very thought provoking and a good indicator of how far EVs have to go before they become the norm. I'd bet a good number of horse & carriage operators were hesitant to adopt the new-fangled automobiles that appeared around at the turn of the century. As with early cars vs horses, the car eventually won out. We are at a nexus of EVs challenging the automotive status quo. EVs too will eventually win out over the ICE vehicle. Why? Because they are inherently better in everyway. That they are cheaper now should be viewed as a opportunity by the masses to buy one and save even more money. Buy an EV. Save money. Help save the planet for future generations.

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