This data-file quantifies vehicle depreciation rates for EVs versus ICEs, by compiling the pricing for over 2,500 vehicles, from various used car websites. Vehicle depreciation rates average $0.11/mile (0.5% per 1,000 miles) for ICE vehicles and $0.27/mile (0.75% per 1,000 miles) for EVs, suggesting that EVs do depreciate faster.
The average costs for ICEs and EVs in the US in 2024 are $30k and $45k respectively, both on a top-down basis when we sample the prices of different vehicles, and on a bottom-up basis when we quantify the underlying costs of vehicles by component. This informs our outlook for vehicle sales over time.
But how quickly do different vehicles lose value? To answer this question, we have compiled data from over 2,500 vehicles, from various used car websites, based on their make, model, delivery year, age and mileage. Interestingly, depreciation rates are similar to or higher than fueling costs!
Vehicle depreciation rates average $0.12/mile for ICE vehicles, which is a depreciation rate of 0.5% per 1,000 miles, and means that a car has lost c40% of its value after 100,000 miles. These kinds of numbers are exemplified by the data shown below, capturing the depreciation of a Honda Accord (Rob’s childhood car!)
Vehicle depreciation rates average $0.27/mile for electric vehicles, which is a depreciation rate of 0.75% per 1,000 miles, meaning an EV has lost 50% of its initial value after 100,000 miles. This is an average across eight well-known EVs, nicely exemplified for the Kia EV6 below.
However, there is also variability among the depreciation rates of vehicles, especially electric vehicles. Generally, the more expensive and more premium vehicles depreciate faster, even in percentage terms (44% correlation). Although the cult following of the Tesla results in lower depreciation rates for the Model 3 and Model Y, which are only slightly higher than for ICEs.
Full data are available in the data file for the BMW i4, Chevrolet Bolt, Chevrolet Equinox, Honda Accord, Honda Civic, Hyundai IONIQ 5, Kia EV6, Nissan Rogue, Subaru Outback, Tesla Model 3, Tesla Model X, Tesla Model Y, Toyota Camry, Toyota Corolla, Toyota RAV4, Volkswagen ID.4.
Results are very similar to a prior analysis that we undertook in 2020, which show the exact same depreciation rate for cars (in $/mile) and a similar depreciation rate for electric vehicles (although the loss rate has increased by c10% in $/mile terms).
In this earlier study, we also evaluated trucks and hydrogen vehicles. The original analysis is also available via the second download radio button below, for those who wish to compare the changes over time.
