Why Do Electric Cars Depreciate Faster on the Used Market?

According to twenty thousand electric vehicle owners, only 2.5 percent of batteries were replaced; the real reason for rapid depreciation is fear, not data.
According to twenty thousand electric vehicle owners, only 2.5 percent of batteries were replaced; the real reason for rapid depreciation is fear, not data.

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Electric cars are depreciating faster than petrol and hybrid models on the used market, on average; the main reasons are uncertainty about battery health, the very rapid pace of technological renewal, and subsidized new car prices dragging down the used car baseline. However, the gap has narrowed noticeably since 2024, and some models have caught up with their petrol counterparts in value retention parity.

Highlights

  • In Europe, most cars lose about 50% of their value in the first three years; hybrids lead at around40%, petrol cars at around45%. level ahead.
  • In a survey covering 20,000 EV owners, only 2.5% of batteries were replaced, outside of manufacturer recalls.
  • Up to approximately 100,000 km, minimal degradation was measured in traction batteries.
  • Buyers are paying 550-1,100 € more for vehicles with a certified battery health report, and these vehicles sell 36% faster.
  • In Türkiye, approximately 192,000 electric cars were sold in 2025; the share of EVs in total car sales reached the 17.5-18% range.

Why Do Electric Cars Depreciate Faster Than Petrol Cars?

Batarya, elektrikli aracın maliyetinin yüzde 40'ını taşıdığı için alıcı, aracın değerinin yarısını görünmez bir kutuya emanet etmiş oluyor.

The answer to this question cannot be summed up under a single heading; three separate mechanisms are pushing in the same direction. The first is psychological, the second technological, the third financial.

Battery uncertainty: the buyer's first question, the seller's biggest problem

The biggest uncertainty in the used EV market concerns the vehicle's most expensive component: the battery makes up roughly 40% of an electric car's manufacturing cost. For the buyer, this means that nearly half the vehicle's value sits inside an invisible box. The health threshold is also clear: a battery state of health (SOH) between 100-80% is considered acceptable, below 80% is a problem area. In vehicles below 70%, the resale value drops noticeably.

Yet the fear lags behind the data. In a survey conducted with 20,000 EV owners, only 2.5% of batteries had been replaced outside of manufacturer recalls. Measurements from the collaboration between TÜV Nord and the University of Munich point in the same direction: up to approximately 100,000 km, degradation remains minimal. In other words, the difference between perception and measured reality is precisely the first and largest source of depreciation.

Technology acceleration: a four-year-old car is a generation behind

In a petrol car, the difference between a 2018 model and a 2026 model mostly stays at the hardware level. In an electric car, the difference is generational: while 2018-19 models in the same segment offered 200-300 km of range, today's equivalents reach 400-600 km of range and much faster charging. Viewed through the lens of range anxiety, the older model creates a perception of being "outdated," and this perception is directly reflected in the price list.

The baseline effect of subsidies and new car price cuts

The baseline that determines second-hand value is the actual transaction price of the new car. When government subsidies widen the gap between the list price and the price actually paid, the residual value is also pulled below that gap. The EV bonus in Germany is the best documented example of this. A study conducted in Italy also shows the scale of the framework: depending on the country, the Tesla Model 3 could be up to 8,524 € cheaper or 6,590 € more expensive than the Toyota Corolla thanks to subsidies; the tax burden varies between 448-16,022 € depending on the country. Add a supply factor on top of that: the return of fleet vehicles to the market and cheap models coming from China are inflating second-hand supply and pushing prices down.

Comparison in Numbers: EV, Hybrid, and Gasoline

When making the comparison, attention must be paid to the measurement method used; because depreciation varies depending on the year measured and the market. Still, the overall picture is consistent:

PowertrainApproximate value lossNote
Hybrid (HEV)~40%The best value-retaining group
Gasoline~45%A predictable depreciation curve
Fully electric (BEV)Steeper, but narrowingSome models have reached gasoline parity
3-year-old BEV (Europe)Retains a smaller percentage of list priceAustria, Germany, Italy, Spain, Switzerland, United Kingdom

A historical data point is also interesting: hybrid depreciation peaked in 2019 at 56.7% - only 0.5% above the current EV depreciation. In other words, hybrids went through a similar cycle too; a phase that EVs are experiencing today will surprise no one tomorrow. Improvement is being measured on the academic side as well: while EV resale value was below 40% after 36 months in 2017, it rose to approximately 55% by mid-2022, closing the gap with other powertrains.

The 2026 picture is mixed but optimistic: EV depreciation has largely stabilized. The average used EV is only $1,300-1,376 above the used gasoline car - the narrowest gap in history. Used EV prices for the same model rose 5.1% in the first half of the year; while vehicles under $40,000 are gaining, those above $55,000are losing. The market's center of gravity has shifted downward: sales slowed after the $4,000 federal credit for used EVs under $25,000 in the US expired on September 30, 2025, but experts are defining 2026 as the "year of the used EV"; used EVs are selling at a similar pace despite being ~ 8%

more expensive than their gasoline counterparts.

The Picture Is Different in Türkiye: The Second-Hand Report Card of Togg, Tesla, and BYD European data cannot be directly applied to Türkiye; because high taxes, limited supply, and limited model variety make it difficult for second-hand prices to fall. The market is also growing rapidly: in 2025, approximately 192,000 electric cars were sold, and in September 2026, a single month saw 15,074 EVs find owners - the peak of that month was 4,237 units for the Togg T10X , followed by the T10F with 2,455

units.

Two opposing signals coexist in the Togg used-car market. On the positive side: regularly serviced vehicles with inspection reports are clearly seeing higher values. Also, range version choice affects pricing; there are observations that the total value loss of the short-range T10X has remained more moderate compared to the long range, and the used-car price gap between standard and long range can be narrower than the gap at new - meaning short range holds up relatively better on the used market. On the negative side is the natural uncertainty of a new brand: there are ownership complaints centered on "it doesn't sell," but these are anecdotal and typical noise of a market's first years. The picture is clearer with Tesla: after 3 years, a 35-40% value loss narrative; MG is showing rapid value loss.

BYD and the price threshold for small EVs

BYD sold 4.60 million new energy vehicles in 2025; in 2025, against 2.26 million BEVs, Tesla stayed at 1.64 million, and in February 2026 BYD overtook Tesla in new vehicle registrations in Europe (17,954 versus 17,664). The company's Manisa plant is planned to start production at the end of 2026; local production is one of the most important variables that will change price and residual value dynamics in Türkiye. There is also a notable turning point: in the first two months of 2026, Tesla and BYD failed to enter the top three on Türkiye's best-selling EV list - domestic demand is advancing ahead of classic predictions. A figure from the German front also bodes well for the small segment: the price premium of new small BEVs dropped noticeably in 2025 from 50% to about 20%; the segment with a melting premium is also priced within a narrower band on the used market.

Characteristics of the Electric Vehicle That Holds Its Value Better

Value retention is not a matter of luck; it is about measurable characteristics. At the time of purchase, the following items directly affect the sale price three to four years later:

  • Certified battery health report: Buyers pay 550-1,100 € more for vehicles with reports, and these vehicles sell up to 36% faster. The report pushes uncertainty out of the price.
  • SOH above 80%: This is buyers' preference threshold; below 70%, the price drop sharpens.
  • Valid battery warranty: Manufacturer warranties are generally given at 8 years / 160,000 km and a 70% SOH threshold. The remaining warranty period is the most concrete trust signal in the used-car price.
  • Current range and charging speed: Vehicles approaching the 400-600 km range band avoid the old-generation perception.
  • High-demand price segment: The market's lower-middle band captured price appreciation here, unlike premium vehicles above $55,000.

Sales timing is also a topic that can be approached like an engineering question. Since battery degradation remains minimal within the first 100,000 km, the vehicle's most valuable sales window is the 3-5 year / 60,000-100,000 km band, where both the warranty period and the SOH threshold are comfortably intact. Across Europe, depreciation in the first three years is ~50% and slowing down in years 4-5, supports this window: the intersection where the steep drop has ended and the battery is still young.

Should You Buy a Used EV Without an SOH Report?

Short answer: you should not. Documenting battery health has become a prerequisite for fair pricing for both sides of the market. A three-layer verification approach is recommended for measurement: a service-sourced battery report, the SOH value and cell voltage differences read from the in-vehicle display or via OBD, and finally a real-world range test. A vehicle where all three corroborate each other is a predictable asset; one where they do not is the weakest link in price negotiation, for seller and buyer alike.

Meanwhile, the thesis that "EVs are junk on the used market" also needs to be countered with data. It is true that the battery accounts for a large share of a vehicle's value; however, 2.5% change rate and minimal degradation up to 100,000 km do not support the "junk in 10 years" scenario. Analyses showing that, when adjusted for inflation, EVs retain their value better than thought on the used market, contrary to industry claims, also reinforce this picture. On the other hand, in Türkiye, due to high taxes, the economic logic of a battery replacement many years later is seriously debatable - this does not mean the vehicle is junk, but rather underscores the importance of choosing the right time to sell.

Conclusion: The Gap Is Closing, But the Rules Have Changed

The second-hand depreciation of electric vehicles is real and, historically, higher than that of gasoline and hybrid cars. However, as of 2026 the gap has narrowed to its lowest level in history; some models have caught up to parity, and vehicles in the low price band have caught the price increase. For the reader, a practical formula can be summed up in three sentences: Buy a car with a documented battery, choose one with over 80% SOH and remaining warranty, and plan your sale for the 4th-5th year when depreciation slows. Depreciation in electric cars is not a fate, but a manageable variable.

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