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Depreciation study shows EVs lose value fastest – Karl Brauer | iSeecars

A study by sheds insight on cars that lose the most value after just one year and those that retain the most value. It may be surprising to some, but several EVs made the list. Joining us on today’s episode of Inside Automotive is Karl Brauer, Executive Analyst for

Key Takeaways 

1. The study highlights cars that depreciate quickly, with luxury and electric vehicles (EVs) like the Mercedes-Benz EQS losing a significant portion of their value within just one year. This steep depreciation raises concerns for buyers and highlights the financial impact of purchasing new luxury and EVs, which tend to depreciate much faster than the industry average.

2. A notable point in the discussion is that EVs are prominently featured among the fastest-depreciating cars. This trend may influence consumer decisions, especially those considering purchasing a new or slightly used electric vehicle. The depreciation rate of EVs reflects broader market uncertainties and consumer hesitance, possibly due to concerns over technology longevity, battery life, and infrastructure development.

3. Additionally, the analysis reveals differences in depreciation rates between luxury and non-luxury vehicles and between EVs and internal combustion engine vehicles. This variance is attributed to the buying behavior of new car buyers versus used car buyers, with the latter being more price-sensitive and value-oriented.

4. In an interesting contrast to electric vehicles, several hybrid cars demonstrate better value retention, with many ranking among the least depreciating cars after one year. This finding indicates a market shift or preference for hybrid technology, perhaps due to its perceived reliability, efficiency, and the balance between traditional and electric powertrains, making hybrids a more appealing choice for a broader range of consumers.

5. Brauer touches on the factors that influence the pricing of used cars, including supply and demand dynamics, the condition and mileage of the vehicle, and broader economic factors such as interest rates and incentives offered by manufacturers. These elements together dictate the market value of used cars, with unique situations like the one described for the Range Rover, where scarcity and high demand can even drive used prices above new MSRP, illustrating the complex dynamics of the automotive market.

"Five of the top 10 fastest depreciating cars after one year are electric vehicles on our list here." – Karl Brauer

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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