There was a time a few years ago (2021-2022) when every asset class was going up. Even the most famous depreciating asset, cars, were increasing in price. However, the tides have turned, and car prices are returning to earth, especially in the EV space. I’ve listed a few examples of car depreciation below. Remember that a few cars aren’t taking place in the price cratering, and those are the usual suspects— Toyota Tacoma, 4-Runner, Honda Accord, Toyota Camry, etc.
According to Progressive, the average car depreciation is 10-15% per year, with most new cars losing 20% in the first year. Some of the cars below have lost over 35% of their value in the first year and have averaged depreciation losses of over $30,000 per year. All values of current prices were pulled from recent facebook marketplace ads.
2014 Bently Continental
MSRP: $231,470
Current Used Value: $76,995
Total Depreciation: $154,475
Depreciation per year: $15,447.50
2022 Mercedes EQS 450+
MSRP: $102,310
Current Used Value: $55,000
Total Depreciation: $47,310
Depreciation per year: $23,655
2022 Ford Mach-E GT Premium
MSRP: $67,995
Current Used Value: $37,000
Total Depreciation: $30,995
Depreciation Per Year: $15,497.50
2022 Audi E-Tron GT RS
MSRP: $143,895
Current Used Value: $78,995
Total Depreciation: $64,900
Depreciation Per Year: $32,450
2022 Kia Ev6 Wind Sport
MSRP: $51,200
Current Used Value: $25,800
Total Depreciation: $25,400
Depreciation Per Year: $12,700
2017 Jaguar F-Type
MSRP: $61,400
Current Used Value: $18,995
Total Depreciation: $42,405
Depreciation Per Year: $6,057
2021 Tesla Model S Plaid
MSRP: $129,990
Current Used Value: $63,400
Total Depreciation: $66,590
Depreciation Per Year: $22,196
2023 Subaru Solterra EV
MSRP: $44,995
Current Used Value: $29,999
Total Depreciation: $14,996
Depreciation Per Year: $14,996
2023 Chevy Bolt EUV
MSRP: $27,800
Current Used Value: $17,899
Total Depreciation: $9,901
Depreciation Per Year: $9,901
2017 Tesla Model S
MSRP: $95,125
Current Used Value: $24,800
Total Depreciation: $70,325
Depreciation Per Year: $10,046
2022 Toyota Tacoma TRD Pro
MSRP: $50,500
Current Used Value:$48,997
Total Depreciation:$1,503
Depreciation Per Year: $751.5
There's an old saying that says people aren't upset when things go wrong. They are upset when their expectations aren't met. This blog is meant to set appropriate depreciation expectations for luxury cars and EVs. The EV space is relatively new, and knowing how well its value would stick was hard. But today, there is more to prove before people are willing to pay the same premium for a used EV compared to a used Toyota, Honda, or diesel truck.
Side note: if you make $500k+ per year, live well below your means, and find joy in driving one of these cars, it may be affordable and not impact your ability to live and retire comfortably. However, if you're just getting by, one of these purchases could be much harder to overcome financially. I hope this helps you to be a more informed consumer and spend your money wisely.
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