Electric vehicle resale values show narrowing gap with gasoline cars

New analysis suggests that the perceived rapid depreciation of used electric vehicles (EVs) compared to gasoline cars is being overstated. While a gap in residual value has historically deterred buyers, accounting for inflation, purchase subsidies, and acquisition taxes reduces the gap between battery electric vehicles (BEVs) and gasoline models from 12.9 to 7.7 percentage points in 2025.

Market dynamics, such as price reductions on new EV models, significantly impact the value of used units. When manufacturers lower prices for new models, the resale value of existing used models drops automatically. When comparing used EVs against current new car prices, the residual value gap narrows to just 2.6 percentage points.

When selecting an electric vehicle, consumers should distinguish between nominal autonomy provided by manufacturers and useful autonomy, which reflects real-world range influenced by driving style, temperature, and terrain. Useful autonomy typically represents 80% to 90% of the nominal value. Choosing a vehicle should involve analyzing driving profiles—urban, mixed, or long-distance—and calculating the total cost of ownership (TCO).