EVs and luxury vehicles depreciate faster in resale value than others over 5 years

[Tahoe Man]

One of the claims I keep seeing on EV boards is how they don't depreciate as fast but it seems that is only in comparison to high-end vehicles.




Cars with the worst resale value in 2022

So I wonder if the speculation about the R1T/S maintaining value is misguided. Thoughts?

Generally buyers want some sort of self justification/pretext when they make a pricey purchase, so slower depreciation fits that narrative - whether if it is correct or not, doesn't matter. Same goes with the other excuses such as less moving parts, longevity, lower operating costs, yada yada yada.

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[Donald Stanfield]

Historically inflation isn't high, especially over the 5 years period under study here; and inflation hits all vehicle values equally.

I think you're right that, in essence, a 5 year old EV is going to depreciate because the technology changes so rapidly. Once the R2 is out (probably in 2030 (just kidding)) the R1 will probably see a drop in value.

My understanding is that the R2 will be lower performance and lower cost than the R1. If that’s the case I’m not sure it will really be a hit to the value of the R1’s.