Electric cars depreciate twice as fast as petrol, according to new data
02/17/2025 07:00 PM
Hybrid cars held their value the most in 2024, dropping just 1.7 per cent in 12 months, with EVs depreciating the most at 25 per cent.
Electric vehicles (EVs) have been found to shed 25 per cent of value in 12 months, depreciating more than twice as fast as petrol-powered passenger vehicles and SUVs.
The data comes from the Australian Automotive Dealer Association's (AADA) Automotive Insights Report, which studies Australian used-car sales, published recently based on 2024 figures.
According to the report, a one-year-old EV can lose a quarter of its original recommended retail value, compared to an 11.5 per cent drop for petrol models.
Diesel-equipped vehicles, excluding light commercials such as utes and vans, were found to depreciate just five per cent in 12 months, while hybrids fared the best dropping just 1.7 per cent of their original price over the same timeframe.
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The AADA attributes the steep depreciation of EVs to "aggressive OEM discounting", with last year seeing substantial price cuts applied to major-brand EVs.
Most notably, MG cut its MG4 from $40,990 drive-away to $30,990 for a limited time, and the Tesla Model 3 moved from $61,990 before on-road costs at the start of the year to $54,900.
Australia's best-selling EV, the Tesla Model Y, also saw a substantial price cut last year, dropping to $55,900 from $65,400.
Other brands that also slashed EV prices in 2023 include Peugeot, Jeep, Nissan, Polestar, GWM, and Ford.
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The used-car data reflects this, as the two most popular used EVs sold in 2024 were the Tesla Model 3 (3341 sales) and MG4 (2694).
A fast-moving new-car market, with nearly a dozen new and re-emerging brands gearing up for local sales – mostly from China and most with an electric-first approach – was also a contributing factor in poor EV retained value, according to the AADA.
These brands include Zeekr, Smart, Geely, Chery, Leapmotor, Deepal, XPeng, and Skywell – most aggressively positioning their models below rivals from Toyota, Hyundai, Kia, and Ford.
Major brands also expanded their EV line-ups, or introduced them for the first time, in 2024, with the likes of the Toyota bZ4X, new-generation Porsche Macan, and Hyundai Ioniq 5 N all launching in 2024.
Finally, the pace of EV technology advancements have also played a part, said the AADA, with new models equipped with improved battery chemistry for increased driving ranges, better cooling for faster charging, and new features such as vehicle-to-load (V2L) and vehicle-to-grid (V2G) capabilities.
However, it remains to be seen if these will be ongoing factors affecting used EV prices.
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