Electric cars have become a staple on the streets in recent years. As the EV market has grown, the depreciation patterns of these vehicles have also become a hot topic for both buyers and sellers. In this article, we’ll dive deeper into the current depreciation changes for electric cars, with a special focus on the luxury segment and the upcoming changes in the market.
Why electric cars depreciate faster than expected
Electric vehicles (EVs) are currently depreciating faster than many expected. A major factor in this is the mismatch between the leasing market and the private market. While many companies lease electric cars because of tax benefits, private buyers are often hesitant to spend large sums on a second-hand EV. This creates an oversupply of ex-lease cars in the second-hand market, which causes a rapid depreciation.
The Depreciation of Luxury EVs: A Surprising Trend
An interesting trend in the EV market is that luxury electric vehicles like the Porsche Taycan are depreciating faster than expected. Research shows that used Taycans are significantly cheaper than comparable models, like the Audi e-tron GT. Despite Porsche’s reputation, the e-tron GT seems to hold its value better. This is partly due to the rarity of the Audi, which is less often found for sale used.
The impact of leasing on the value of electric cars
A large part of the current second-hand electric cars come from lease contracts. When these cars return to the market at the end of their lease period, they are often offered in large numbers. This leads to a surplus of second-hand EVs, which drives down prices. Especially more expensive models, such as the Tesla Model S and the Jaguar I-Pace, quickly lose value as a result.
Subsidy programs and their impact on EV prices
In the Netherlands, subsidies such as the SEPP scheme have long ensured a growing interest in electric vehicles. However, these subsidies expire in 2025, which affects the prices of both new and second-hand electric cars. In addition, the introduction of bpm (tax on passenger cars and motorcycles) on electric cars will further increase the new prices in the coming years.
Depreciation by brand: who loses the most?
Not all brands are equally affected by depreciation. Recent data shows that expensive models from Tesla, BMW, Mercedes and Porsche are losing value much faster than expected. For example, a BMW i7 lost more than 50,000 euros in value in just one year. For the Porsche Taycan, this loss can even be as much as 72,000 euros, depending on the version and mileage.
Why luxury EVs struggle to retain their value
A major reason for the rapid depreciation of luxury electric vehicles is the lack of demand in the second-hand segment. Although these cars are technically advanced, the high purchase price deters many private buyers. In addition, many consumers prefer to opt for cheaper, mass-market EVs, such as the Kia e-Niro or the Hyundai Kona Electric, which offer better value for money.
Porsche Taycan: surprisingly affordable on the second-hand market
Despite its premium image and powerful performance, the Porsche Taycan is surprisingly affordable on the used market. A well-maintained Taycan can be purchased for less than €65,000, which is considerably lower than the original price of €169,000. This offers buyers an exciting opportunity to own a luxury EV for a fraction of the original price.
Tesla's Price Cuts and Their Impact on the Market
Tesla has been aggressively cutting prices in recent years to keep sales high. This has had a major impact on the used car market, where many older Tesla models have quickly depreciated. This strategy has forced competitors like BMW and Mercedes to cut prices to stay competitive, increasing depreciation pressure on their vehicles.
Is Now the Right Time to Buy a Used EV?
With the current market conditions and the sharp drop in second-hand prices, it is a good time to purchase a luxury second-hand EV. In particular, models such as the Mercedes EQS and BMW i7 are now available for less than half their original value. However, buyers should expect further price drops in the near future, especially with the arrival of bpm and the end of subsidies.
What to expect from the changes in 2025: BPM and SEPP subsidies
In 2025, there will be significant changes in the tax legislation for electric cars in the Netherlands. The introduction of BPM and the disappearance of the SEPP subsidy will increase the prices of new EVs by at least 3,600 euros. This makes it attractive for consumers to purchase a new electric car before these changes.
How to maximize the value of your electric car?
For those who currently own an electric vehicle, it’s important to think strategically about selling. With high depreciation rates on luxury models remaining high, it may be wise to sell now before the market becomes more saturated. However, for buyers, this presents an opportunity to purchase a luxury EV at attractive prices that may have seemed out of reach just a few years ago.
Outlook: Will depreciation rates normalize?
Whether EV depreciation rates will stabilize remains unclear. As technology improves and demand for EVs continues to rise, it’s possible that depreciation will decline. For now, however, the market appears saturated, especially in the premium segment, meaning that pricing pressure is likely to remain for some time.
Buy now or wait for the 2025 tax changes?
For potential buyers, the question is whether to strike now or wait until 2025. While new EV prices are likely to rise due to the introduction of bpm, second-hand models may continue to fall in price. For those looking for a luxury model at a competitive price, now may be the best time to buy a second-hand EV.
Conclusion
The electric car market is currently in flux, with significant depreciation on luxury models such as the Porsche Taycan, BMW i7 and Mercedes EQS. For buyers, this is an ideal opportunity to purchase a luxury EV at an affordable price. However, with the upcoming changes to Dutch tax law in 2025, it may also be wise to quickly purchase a new electric car before prices rise. Whether you opt for new or used, the electric car offers a promising moment in the current market.
