By Elijah Nicholson-Messmer Autoblog
Electrified losses
Electric vehicles might be the future, but they're not holding their value like it. According to a new study by iSeeCars, EVs lose an average of 58.8% of their value after just five years, significantly more than the industry average of 45.6%. Trucks and hybrids are faring far better, losing just about 40%. The study analyzed more than 800,000 used vehicles sold between March 2024 and February 2025, and while every segment is depreciating faster than it did during the pandemic years, electric vehicles are losing value at an alarming rate.
"Depreciation remains the most expensive aspect of buying a new vehicle, and the variation between vehicle types and specific models is something consumers should consider when researching their next purchase," said Karl Brauer, executive analyst at iSeeCars. "The difference between buying a hybrid versus an electric vehicle could be tens of thousands of dollars in lost value." Below are the electric cars losing the most money. These models may be great to buy used, but risky to purchase new.
Jaguar I-Pace - 72.2% depreciation
The worst offender on the list, Jaguar's electric crossover loses nearly three-quarters of its value within five years. On average, I-Pace owners see a jaw-dropping $51,953 drop from the original sticker price. While the I-Pace was praised for its design and performance when it launched, the market hasn't been kind to it. Jaguar's relatively low brand loyalty in the U.S., coupled with high MSRP and limited charging network access, makes it a tough resale option, even with luxury appeal.
Tesla Model S - 65.2% depreciation
Once the gold standard for electric luxury sedans, the Tesla Model S has taken a financial nosedive in the used market. With an average depreciation of 65.2%, owners are losing over $52,000 in value. Why? High prices, rapid tech updates, and stiff competition from new EV startups and traditional automakers have all played a role. Even Tesla's continuous software updates can't offset the brutal depreciation when the hardware stays the same.
Nissan LEAF - 64.1% depreciation
The once-pioneering LEAF suffers from outdated range, aging design, and limited fast-charging capabilities, contributing to its 64.1% value drop, or $18,043 in real dollars. The LEAF was one of the first affordable EVs on the market, but it hasn't kept pace with rivals in battery tech or performance. For used buyers, it's a bargain. For new buyers, it's a gamble.
Tesla Model X - 63.4% depreciation
Tesla's falcon-winged SUV is flashy, but it's also a depreciation heavyweight. Owners lose an average of $53,846, with values dropping 63.4% after five years. The Model X is expensive, and while it offers both performance and practicality, its love-it-or-hate-it design and frequent mechanical issues, especially with the rear doors, haven't helped its resale value.
Tesla Model Y - 60.4% depreciation
Tesla's best-selling model doesn't escape the depreciation curse. The Model Y drops 60.4% of its value, or about $36,225, in five years. That's a steep fall for a vehicle that still commands strong demand. But high production volumes, price cuts from Tesla, and increasingly fierce competition from Hyundai, Ford, and others have kept used prices low.
Porsche Taycan - 60.1% depreciation
Even a Porsche badge can't shield the Taycan from EV market realities. Despite being a performance beast, the Taycan depreciates by 60.1%, or a brutal $59,691 - the largest dollar drop on this list. Luxury EVs are especially vulnerable to depreciation, and the Taycan is no exception. High repair costs and rapid battery technology improvements leave it in a tough spot for resale.
Kia Niro EV - 59.2% depreciation
Kia's subcompact electric SUV may be practical, but that hasn't protected its value. The Niro EV loses 59.2% of its value in five years, costing drivers $23,439. As a relatively affordable EV, the Niro competes in a crowded market. Newer models with better range and more tech have edged it out, leaving older versions looking dated in the resale market.
Hyundai Kona Electric - 58.0% depreciation
Just under the EV segment average, the Kona Electric still drops 58%, or $19,062, after five years. That's better than most EVs, but still worse than nearly every hybrid or truck. The Kona Electric has been generally well-received, but it shares its fate with the rest of the EV segment: rapid obsolescence and a still-uncertain charging infrastructure.
Tesla Model 3 - 55.9% depreciation
Believe it or not, Tesla's most affordable model is the best at holding its value among EVs, better than the average for the overall EV segment. The Model 3 depreciates 55.9%, or $23,771, over five years. Why does it do better than other EVs? High demand, lower initial cost, and a more stable production timeline. But it's still not enough to compete with hybrids, trucks, or even gas-powered compacts when it comes to resale value.
Final thoughts
The EV market is evolving fast. That's great news for technology, but not so much for resale values. Newer models are gaining range, better batteries, and lower MSRPs, which means today's cutting-edge EV could feel obsolete in just a few years.
Meanwhile, hybrids and trucks are holding their value far better. Hybrids in particular have only lost 40.7% of their value on average, and their tech is mature, efficient, and well-supported. If you're looking to buy an EV, it might be smarter to go used. And if you're buying new? Just know you could be staring down tens of thousands in depreciation by the time your loan is paid off.
Copyright 2025 The Arena Group, Inc. All Rights Reserved.
This story was originally published April 23, 2025 at 10:00 AM.
