Electric vehicles (EVs) are often hailed as the future of transportation. However, when it comes to their resale value, they may not hold up as well as their gasoline counterparts. EV’s, after all, are just glorified computers with wheels and motors that you can sit in and drive around. Their used resale values will as time passes have much more in common with used computers than with their petrol based brethren.

Rapid Technological Advancements

Just like computers, EVs are subject to rapid technological advancements. When a new computer model is released with a faster processor, more memory, or better graphics, the value of older models drops. Similarly, as advancements in battery technology lead to EVs with longer ranges and shorter charging times, older models may become less desirable, leading to a decrease in their resale value.

Battery Degradation

Another factor to consider is battery degradation. In a computer, if the battery life diminishes over time, it can be a significant drawback for potential buyers. The same applies to EVs. The battery is one of the most critical components of an EV, and its health directly impacts the vehicle’s range. As the battery ages and its capacity to hold a charge decreases, so does the vehicle’s resale value.

High Replacement Costs

The cost of replacing a battery in an EV can be quite high, similar to replacing a major component in a computer. This can deter potential buyers of used EVs, thereby driving down the resale value.

Software Updates

Both computers and EVs rely heavily on software, and older models may not support the latest updates. This lack of support can lead to decreased functionality and security risks in computers, and similar issues can arise in EVs. For instance, newer models may come with advanced features like improved autopilot or energy efficiency, which are not available in older models.

While EVs offer numerous benefits such as reduced emissions and lower fuel costs, their resale value is likely to be impacted by factors such as rapid technological advancements, battery degradation, high replacement costs, and outdated software. These are common issues in the world of used computers, and it’s reasonable to expect that used EVs will follow a similar trajectory. As with any technology, it’s essential for consumers to consider these factors when investing in an EV.

None of this should dissuade you from getting an EV, they do make not only financial sense but also environmental sense as well, just take into a account that they will depreciate at a very high rate when making the purchase. It also means that the used EV market might be holding some very good bargains as long as you get the battery tested prior to purchase.