Electric car enthusiasts pay the price of innovation
By Tom Haynes PERSONAL FINANCE REPORTER
The London Telegraph
A smart investment typically pays off over time, but sadly this isn’t always the case in the world of technology, where early adopters bear the brunt of manufacturers’ research and development costs. This is especially true for the first wave of electric car drivers, who are now finding that the vehicles they spent a fortune on are now worth thousands less.
In fact, the rate of depreciation for electric cars is far outpacing that of their petrol equivalents. In some cases, electric car values are dropping twice as much as petrol-powered motors. EVs lost roughly half their value between 2020 and 2023, while petrol car prices fell by 37pc in the same period, Telegraph Money discovered this week.
One study found electric cars lost £15,000 of their value on average over the three-year period, compared with £9,000 for petrol vehicles. Prices have come down as used models flood the market and manufacturers including Tesla have been forced to cut prices to remain competitive.
So when looking at the total package, cost of the car and cost of ownership (energy, repair, upkeep) you must also consider its residual value. And at this point....EV doesn't compare favorably....
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