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The gap reflects how buyers price vehicles used, not simply the presence of a battery. Upfront pricing, demand, brand reputation, confidence in battery life, incentives, fuel costs and local policies can all change resale value. A percentage loss also hides the dollar impact: a cheaper EV can lose a higher percentage but fewer dollars than a high-priced luxury SUV.
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What the latest comparison actually measures
iSeeCars’ 2026 study analyzed more than 950,000 five-year-old used cars sold in the United States from March 2025 through February 2026. It compared each vehicle’s observed used-market price with its original MSRP, reporting both the percentage and dollar difference. The results describe that sample and period; they are not a guaranteed future price for your car.
| Category or vehicle | Five-year depreciation | Average dollar difference from MSRP |
|---|---|---|
| Electric vehicles (average) | 57.2% | Not stated in the study summary |
| SUVs (average) | 44.9% | Not stated in the study summary |
| Nissan LEAF | 63.1% | $17,743 |
| INFINITI QX80 | 62.8% | $52,631 |
| Land Rover Range Rover | 61.7% | $69,856 |
| Tesla Model 3 | 54.6% | Not stated in the study summary |
| Porsche Taycan | 54.7% | Not stated in the study summary |
Those figures come from the iSeeCars 2026 depreciation study. “SUV” is a broad body-style category, so the 44.9% figure is not a controlled, model-for-model comparison with a particular luxury electric car. It is best read as evidence that the sampled EV segment had weaker average retention than the sampled SUV segment.
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Why a higher percentage loss does not always mean a bigger financial loss
Depreciation is calculated against the vehicle’s starting price. A 60% loss on a $35,000 car and a 60% loss on a $110,000 car produce very different checks when the vehicle is sold or traded.
The LEAF illustrates the difference. Its 63.1% five-year decline represented an average $17,743 gap from MSRP in the iSeeCars sample. The Range Rover lost 61.7%, a slightly lower percentage, but the average dollar gap was $69,856 because the original vehicle cost much more. The QX80 combined a 62.8% percentage decline with a $52,631 dollar difference.
When comparing two cars, record both measures. A high percentage loss matters to an owner who paid the original price, while the dollar figure matters for equity, trade-in value and the amount of cash needed to replace the vehicle.
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Why EVs can lose value quickly
Higher starting prices can create more room to fall
iSeeCars Executive Analyst Karl Brauer said, “Electric vehicles consistently cost more than the equivalent gasoline or hybrid model.” That is an analyst’s explanation of a market pattern, not a claim about every trim or transaction. When a new EV carries a substantial premium, a used buyer may demand a larger discount before accepting the remaining warranty, mileage and condition.
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List price is not the same as the price a first owner paid. Manufacturer incentives, dealer discounts and regional programs can lower the transaction price without changing the published MSRP used in a depreciation calculation. A vehicle bought after a large incentive can therefore have a different real-world loss than an MSRP-based percentage suggests.
Used buyers may value the technology differently
Luxury and EVs often advertise advanced equipment, but used shoppers do not assign equal value to every feature. Brauer described luxury vehicles as offering “an appealing blend of upscale styling, premium interior materials, and the latest in automotive technology,” while noting that used buyers do not necessarily value those traits enough to prevent high depreciation. The same principle applies to an EV whose original price reflects equipment that a second owner considers optional rather than essential.
Demand is also model-specific. A recognizable charging system, strong reliability record, practical range and an active buyer community can support a model’s resale. A less familiar vehicle may need a steeper price cut even if its specifications look impressive on paper.
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The International Energy Agency says growing confidence in battery lifetimes could support EV resale values. That wording matters: it identifies a potential influence, not proof that battery concern alone caused any particular model’s depreciation. Buyers weigh the remaining battery warranty, degradation information, charging access and the cost of ownership alongside the vehicle’s age and mileage.
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Brand image and demand can work in the opposite direction. The IEA notes that some battery-electric models retain value better when their brands have strong demand. Two EVs with similar range and age can therefore have very different used prices.
Supply, incentives and operating economics keep moving
iSeeCars reported that overall five-year depreciation improved from 45.6% in its 2025 results to 41.8% in 2026. EV depreciation moved from 58.8% to 57.2%, a smaller change. Brauer attributed the broad improvement to rising used-car demand and/or insufficient supply over the prior 12 months, while also pointing to new-car price increases and consumer confidence as possible influences. The report does not establish one universal cause.
The IEA identifies other forces that can shift relative ownership economics: fuel prices, access rules for low-emissions zones, taxes or parking fees aimed at internal-combustion vehicles, and purchase subsidies. A policy change can raise or reduce demand for a used EV in one country or city without producing the same result elsewhere.
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High MSRP magnifies every percentage point
Large luxury SUVs often start at much higher prices than mainstream vehicles. Even a resale percentage that looks ordinary can create a large dollar loss, as the Range Rover example shows. Buyers who focus only on percentage rankings can miss the financial exposure created by a six-figure starting price.
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Luxury features do not guarantee a resale premium
Premium materials, powerful engines, complex suspension systems and extensive electronics can make a new SUV attractive, but the used market may discount the cost of maintaining them. The original owner pays for the complete luxury experience; a later buyer may prioritize warranty coverage, running costs and a lower purchase price.
Model supply and incentives can overwhelm the badge
Resale is determined by the supply of comparable used vehicles and the number of shoppers willing to buy them. A heavily discounted new SUV, a large fleet supply or a change in consumer tastes can pressure used prices. That is why the QX80 and Range Rover can appear among high-depreciation vehicles even though the SUV category average is better than the EV average.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.EVs and SUVs that show the averages are not destiny
In the same iSeeCars analysis, the Tesla Model 3 depreciated 54.6% and the Porsche Taycan 54.7%, both below the 57.2% EV average. The Nissan LEAF’s 63.1% result was considerably worse. These examples show why a segment average should not be used as a quote for an individual model.
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Kelley Blue Book’s 2026 Best Resale Value Awards provide a different, forward-looking view. Its projections use statistical models based on millions of transactions and assume an average-condition vehicle with 75,000 miles after five years. The awards name the Tesla Model 3 as Electric Car winner, the Rivian R1S as Electric SUV winner, the Cadillac VISTIQ as Luxury Electric SUV winner and the Lexus RX as Luxury Midsize SUV winner.
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| Kelley Blue Book 2026 category | Winner | How to interpret it |
|---|---|---|
| Electric Car | Tesla Model 3 | Projected leader within that award category |
| Electric SUV | Rivian R1S | Projected leader within electric SUVs |
| Luxury Electric SUV | Cadillac VISTIQ | Projected leader within luxury electric SUVs |
| Luxury Midsize SUV | Lexus RX | Projected leader within luxury midsize SUVs |
KBB also projects that an average 2026 model-year vehicle will retain about 45% of its original value after five years. That estimate is not the same measurement as iSeeCars’ observed sales sample, and an award does not mean every trim will achieve the projection. See the methodology and category details in Kelley Blue Book’s 2026 awards announcement.
How to judge the resale value of a specific car
Segment averages are useful for context, but a purchase decision needs vehicle-specific evidence. Use the same comparison rules for an EV and a luxury SUV.
- Identify the exact vehicle. Record model year, trim, drivetrain, battery or engine configuration, options and vehicle class. “Electric SUV” or “luxury SUV” is too broad for a precise estimate.
- Use the real acquisition price. Keep MSRP separate from the transaction price after discounts, tax credits and dealer incentives. A depreciation percentage calculated from MSRP may overstate or understate your actual loss.
- Match mileage and condition. Compare estimates using similar odometer readings, accident history, tire condition, service records and cosmetic quality. KBB’s five-year projection assumes average condition and 75,000 miles; your car may differ materially.
- Check local supply. Search listings and recent valuation results in the area where you will sell. Regional incentives, charging availability and fuel prices can change demand.
- Separate observed and projected numbers. iSeeCars reports prices for vehicles that actually sold during its study period. KBB’s award figures are projections from its Residual Value Guide. Do not combine them as if they were one dataset.
- Get a current vehicle-specific estimate. Use a reputable valuation or trade-in service for the VIN, mileage and condition, then compare more than one offer. A current estimate is more useful than applying an EV or SUV average to your car.
Is a used EV a better deal?
A used EV can be a better deal for the buyer because the first owner absorbed a large share of the depreciation. The lower purchase price may provide access to newer safety equipment, lower energy costs or a longer remaining warranty than buying a new vehicle at the same budget. Whether it is actually the better choice depends on battery warranty coverage, charging access, insurance, local electricity and fuel prices, and the vehicle’s condition.
Do not assume that a steep historical decline guarantees a bargain or predicts another steep decline. Confirm the remaining battery and vehicle warranties, inspect charging equipment and service history, and compare the used price with current new-car incentives. A discount is valuable only if the car meets your needs and the ownership costs fit your location.
What could change the pattern
Resale markets respond to conditions rather than a permanent EV-versus-SUV law. Strong demand for a particular EV, better public understanding of battery longevity, restricted access for combustion vehicles, or higher fuel prices could support EV values. Conversely, purchase subsidies, aggressive new-car discounts or a sudden increase in used supply could narrow or widen the gap in a given market.
The practical conclusion is narrow but important: the iSeeCars 2026 averages show EVs depreciating faster than SUVs in that U.S. sample, while individual models cross the lines in both directions. Compare the exact car, the dollars at stake and the assumptions behind each valuation before deciding what to buy or when to sell.
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