A recent look at the resale value of used electric vehicles confirms another reason why EVs are a terrible investment.
According to a piece in The Telegraph, EVs lose more than half their value in the first two years after purchase new off the lot.
To give an idea of what we are talking about, if you buy a £40,000 EV, it will only be worth £19,000 24 months later. That is a terrible return on investment. Since this is a UK paper, the prices are in pounds, but the paper adds that after 2 years, the price es on used EVs have fallen to only £24,908.
That is a 5 1 percent drop in value. Eeeyouch!
But here is the thing. A used EV is practically worthless, especially if it is already older the 5 to 1 years. After all, a used car buyer doesn’t want to buy a car that will cost them from $5,000 to $25,000 to replace the battery pack, a repair that isn’t just a guess at some point.
So, you are going to spend $30,000 or more on a used EV and know for a fact that you are going to incur an huge EV battery replacement bill at any moment? It’d be a bit foolish to buy a car knowing that cost is just around the corner.
Of course, gas-powered cars also take a hefty loss on value as the years pass, too, granted. However, for a gas car, that value only really starts tumbling after five years being on the road. Not just two.
Another pressure that EVs face is government subsidies. The EV car industry simply can’t survice without billions in subsidies from every major government in the western world. And right now, prices are suffering because EV makers are engaging in price wars because no one wants an EV and new EVs are piling up at the dealerships.
Your best be is to simply avoid EVs like the plague.
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