New data highlights persistent resale challenges for EVs, even as overall used car values show signs of stabilizing.

Electric vehicles continue to depreciate faster than other segments, with the Ford Mustang Mach-E ranking among the worst performers over five years. New data highlights persistent resale challenges for EVs, even as overall used car values show signs of stabilizing.
According to iSeeCars data, the Mustang Mach-E ranks eighth among vehicles with the highest five-year depreciation, losing an average of $22,976 or 60.8% of its original value. The result places it alongside several other EVs and luxury models that dominate the lower end of resale rankings.
Among the worst performers are the Nissan Leaf, Volkswagen ID.4, Tesla Model S, and Tesla Model X, all of which posted depreciation rates exceeding 60% over five years, according to Ford Authority.
Overall, EVs recorded the steepest decline of any segment, with average depreciation at 57.2%, significantly higher than hybrids at 35.4%. Concerns around battery longevity and replacement costs have historically weighed on resale values, though real-world data increasingly suggests those fears may be overstated.

Despite EV-specific challenges, broader market trends indicate improving resale performance across the industry. Average five-year depreciation dropped to 41.8% in 2026, a 3.7% improvement compared to the previous year.
Analysts attribute this shift to stronger used vehicle demand and constrained supply, driven in part by rising new car prices and softer consumer confidence. These dynamics have supported residual values across most segments.
However, EVs remain an outlier. Even as technology improves and adoption increases, electric models continue to lose value faster than traditional vehicles, trailing the industry average by more than 15 percentage points.
By contrast, trucks and hybrid vehicles lead in value retention, reflecting continued demand and broader consumer familiarity.
As the EV market matures, depreciation trends will remain a key consideration for buyers weighing ownership versus leasing, particularly for newer models entering an increasingly competitive landscape.
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