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In the United States, electric vehicles depreciated more than the overall car market in iSeeCars’ five-year study published in 2026: 57.2% versus 41.8%. That makes EVs the weaker group on average in this sample, but it does not show that every EV loses more value than every gasoline car—or provide a matched comparison of equivalent models.
What the latest U.S. comparison says
iSeeCars analyzed more than 950,000 five-year-old used cars sold from March 2025 through February 2026. Its measure is depreciation over five years: EVs lost 57.2% of their value, compared with 41.8% for the overall market. In other words, the EV segment depreciated 15.4 percentage points more than the market-wide figure.
The comparison is useful for understanding broad resale trends, but its categories are not a controlled EV-versus-gas test. The overall market includes multiple powertrains, body styles, and models; the study does not establish how an EV compares with a directly equivalent gasoline model. iSeeCars Executive Analyst Karl Brauer described EVs as losing more value than any other segment and outpacing the industry average by more than 15 percentage points, referring to this U.S. study and period. See iSeeCars’ 2026 depreciation study.
Powertrain alone does not explain the ranking
In the same iSeeCars study, five-year depreciation was 35.4% for hybrids and 34.2% for trucks. Those are different kinds of categories—one a powertrain and the other a body type—so they are not direct substitutes for a matched EV-versus-ICE comparison. They do show why a single headline about “EVs versus ICE” can conceal variation among vehicle types.
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Resale trends differ by region and year
The U.S. result is not a universal rule. The International Energy Agency (IEA) reports that battery-electric vehicle (BEV) value retention across five European markets declined from about 50% in 2022 to 35% in 2025. Overall-market retention in those markets fell from around 60% to 50% over the same period. In China, three-year-old electric cars retained about 46% of their value in 2024, compared with about 55% for the broader used-car market.
These are retention rates from regional market comparisons, not the same measure or sample as iSeeCars’ U.S. five-year depreciation results. A retention rate expresses resale value as a share of the original purchase value: under the IEA’s definition, a 70% rate means the vehicle sells at an average discount of 30% from its original price. The IEA chart uses values for the last month of each year and could not adjust for differences in the average age of vehicles sold. It also identifies U.S. 2025 retention figures as estimates because of data availability. Read the IEA regional retention comparison.
Why EV resale values can fall faster
There is no single cause that applies to every EV or market. The IEA points to factors specific to the periods and regions it discusses:
- New models and technology: In China, rapid battery-technology advances made newer EVs more attractive, while concerns about battery health and the cost of major repairs made older models less appealing.
- New-car price cuts: In the United States, the IEA identifies Tesla price cuts as one factor in the sharp reversal in used EV values in 2023. Lower new-car prices can make a used example less competitive.
- Incentive changes: The IEA also cites the expiration of used-EV tax incentives in 2025 as an influence on the U.S. market.
- Supply and demand shifts: Pandemic-era supply constraints supported used-car retention broadly in several European markets in 2022. As supply and demand rebalanced, retention fell, with BEVs weakening more noticeably.
Discounting, incentives, used-vehicle supply, buyer expectations about batteries, and a model’s popularity can all change resale outcomes. The factors above explain the markets and periods covered by the IEA; they should not be treated as a diagnosis for every individual vehicle.
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The IEA’s Global EV Outlook 2026 discusses these market-specific trends.
What model-level evidence can—and cannot—tell you
Segment averages do not predict the resale price of a particular car. Model popularity and condition matter, and awards or forecasts should not be mistaken for completed sales. Kelley Blue Book’s 2025 Best Resale Value Awards included the Tesla Model 3, Rivian R1S, Porsche Taycan, Lexus RZ, and Rivian R1T among category winners. The awards draw on KBB’s Residual Value Guide for 2025 model-year vehicles: its residuals are projected future auction values for vehicles in average condition with 75,000 miles after five years, not guaranteed prices or observed outcomes for every car. See KBB’s 2025 award announcement.
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Depreciation is not the same as total ownership cost
A car that depreciates faster may still cost less or more to own overall, depending on purchase price, energy, maintenance, insurance, incentives, and how long it is kept. A University of Michigan Center for Sustainable Systems analysis of 260,000 U.S. used-car listings collected in 2024 found that BEVs depreciated more rapidly during the first several years, then followed similar patterns afterward. The study also calculated total cost of ownership, but that separate result should not be read as a resale-only conclusion. Its listing-based analysis is not the same as iSeeCars’ study of vehicles sold. Read the University of Michigan analysis.
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How to apply the comparison to a car you may buy
- Compare the specific EV with a similar gasoline model, rather than applying the segment average to both vehicles.
- Keep the comparison consistent: use the same market, model year or vehicle age, holding period, and valuation method. A depreciation percentage from observed sales is not interchangeable with a retention estimate or a projected residual value.
- Look at the individual EV’s battery health and condition. A qualified inspection or model-specific battery-health report can help assess that car, though it cannot guarantee its future resale price.
- Include the expected ownership period and total costs in your decision. Resale depreciation is one part of the calculation, not the whole answer.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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