Which electric cars hold their value the best?

- By Tristan Young

5w ago
4.3K

With so many new electric cars coming to the market we investigate which EVs in five popular segments of the market will lose the least value when it comes time to sell.

Assuming you’ve got over your range anxiety and want to buy a fully electric car, your next biggest concern is most likely to be the cost of buying one.

Despite government grants designed to make EVs more attractive to buyers by offering a few thousand pounds off the list price, electric cars are still typically more expensive than their petrol or diesel equivalent.

However, in reality it’s not the list price of an EV (or any car) that buyers need to worry about, it’s the depreciation cost. In other words, the difference between the price you pay when it’s new and the price you can sell it for when you sell.

This depreciation in value is the start point for any finance for the car – in other words, it’s the factor that needs funding which is not the cost when the car is new. With around 90% of private new car buyers opting for a finance scheme, you can see why depreciation is a big issue.

In other words, you could find the scenario where a car with a higher list price costs less to finance per month than a less expensive car all because the more expensive car loses less value than the car with the lower list price.

YesAuto spoke to car valuation expert Dylan Setterfield, head of forecast strategy at Cap HPI, to find out which EV in each of five sectors of the market offered the lowest depreciation – in other words likely to give you the best deal.

The figures used by Setterfield show the predicted depreciation after three years and 30,000 miles.

Supermini

1. Mini Electric, £16,052

2. Honda e, £16,630

3. Peugeot e208, £16,666

Those looking for the electric supermini that best holds its value, then look no further than the EV version of the three-door Mini. Despite having a higher list price than either the Honda e or the Peugeot e208, the popularity, and therefore demand, for the Mini brand means it loses the least money over three years compared to its rivals.

Future value expert Setterfield added: “The Mini has its own unique style and the electric version maintains the tradition of being fun to own. It's quick, well designed and will appeal to all Mini fans. Its battery range of 145 miles is not the greatest in the sector, but will be enough for many. Strong used values mean it depreciates less than its rivals, albeit from a higher initial outlay.”

Family hatchback

1. Mazda MX-30, £15,175

2. MG 5, £17,228

3. Volkswagen ID3, £17,745

Of all the EVs listed in this feature, the Mazda MX-30 loses the least amount of money over three years and 30,000 miles. If you can live with the shorter range, you’ll save more than £2,500 in depreciation compared to the popular Volkswagen ID3. It’s also got the coolest doors of any electric car this side of a Tesla Model X.

“The Mazda MX-30 is another recent introduction,” according to Setterfield. “Its smaller battery makes this vehicle as light as many equivalent petrol and diesel models, which makes for improved ride and handling against its peers. However, it's lower range, of 125 miles, positions it as an economic choice; a second car.”

Small SUV

A full version of this article was first published on YesAuto UK.

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