Electric vehicles (EVs) have become a hot topic in recent years as more people are looking for eco-friendly and sustainable transportation options. However, a new study by ChooseMyCar.com suggests that purchasing an EV may not be a wise investment, especially when compared to gas-powered cars.
The study found that EVs depreciate in value at twice the rate of gas-powered cars, making them an expensive and poor investment over the long term. On average, EVs lost 51 percent of their purchase value in the three-year period between 2020 and 2023. In contrast, gas-powered cars lost 37 percent of their value during the same time frame.
Interestingly, the study found that the higher the original purchase price of the car, the greater the loss in value. The Tesla Model S, for example, loses nearly $32,000 in value in just three years, according to the study. Entry-level EVs like the Nissan Leaf also fared poorly, losing a whopping 58 percent of their value in three years.
These findings indicate that purchasing an EV may not be a sound financial decision. With gas-powered cars holding their value at a significantly higher rate, it may be more prudent to invest in a traditional car instead.
However, financial considerations aren’t the only reason why EVs may not be worth the investment. According to a recent J.D. Power survey, the percentage of car shoppers uninterested in purchasing any type of EV is increasing. The survey found that 21 percent of car shoppers in March 2023 were “very unlikely” to consider purchasing an EV in the next 12 months, the highest such response ever recorded by the group.
One of the biggest reasons cited for this lack of interest is the cost associated with owning an EV. While the cars themselves are already expensive, the cost of electricity is also increasing. Additionally, the time it takes to recharge an EV can be a significant inconvenience, particularly when compared to the quick and easy process of refueling a gas-powered car.
Furthermore, many consumers are concerned about the lack of charging station availability and limited driving distance per charge. With millions of Americans driving long distances on a daily basis, the fear of running out of power in the middle of nowhere is very real. Plus, the grid simply cannot handle the load of everyone charging their EVs daily, leading to the possibility of power outages and stranded EV drivers.
