Steep Depreciation Rates For EVs A Serious Problem


According to the National Automobile Dealers Association the used plug-in electric vehicles depreciate at a 30% rate that is the highest depreciation of any vehicle segment in the American automotive market. For other vehicles, according to Carsdirect.com: “New cars depreciate about 20% the moment you drive them off the lot.”   Then the depreciation is about 15% per year for the second and third year and less in subsequent years.

TheDetroitBureau.com says:

“The steep rate of depreciation for used plug-in electric vehicles can be attributed to limited range, manufacturer incentives and federal tax credits intended to offset the higher prices of new plug-in electric vehicles,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide.

If the forecasted decline continues, it could be a serious problem for both manufacturers struggling to boost demand for their latest plug-in hybrids and pure battery-electric vehicles, as well as federal and state government officials who have been using financial incentives to help promote the technologies.

 Another ominous sign for the EV business.

cbdakota

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