DETROIT — Electric vehicles in the United States lost value at a faster clip in 2025 than many traditional gasoline-powered cars, reflecting shifting demand, rapid technology advances and policy changes that have reshaped the auto market, industry analysts said.
Across the used-vehicle landscape, EVs have seen steep declines in resale value compared with earlier years, data and market analyses indicate. The trend is being driven by an influx of newer models, faster technological obsolescence and weaker consumer incentives, especially after the expiration of federal tax credits in late 2025.
EVs also lost value after the Trump administration canceled a federal tax credit.
Industry analysts tracking secondhand markets reported some of the largest declines among used EVs, with values falling as much as 28% over the past year for certain models.
Hitting the Brakes
Among the EVs losing the most value, small and prestige models topped the list:
• Audi Q8 e-tron — Depreciation nearing 72%, one of the steepest drops among mainstream electric vehicles.
• Jaguar I-Pace — Roughly 72% loss in value, reflecting soft demand for high-end EV luxury crossovers.
• Tesla Model S — Down about 63% in resale value compared with original pricing.
• Nissan Leaf (SV Plus) — Declines of more than 64% in older used units.
• Tesla Model X — Nearly 59% depreciation, one of the larger losses among premium EVs.
Industry analysts say the faster depreciation stems in part from the rapid pace of battery and range improvements, which make older EVs less attractive to buyers. At the same time, a large supply of off-lease EVs entering the market has put downward pressure on prices.
ICE vs. EVs
Compared with traditional internal-combustion vehicles — which typically lose roughly 45% of their value over five years — EV depreciation rates in some segments have exceeded 55% over similar ownership periods, according to pricing analyses.
Auto dealers and buyers alike say the shifting resale dynamics are prompting a reassessment of EV ownership costs and trade-in values. For buyers, lower used EV prices can improve affordability, but for owners planning to trade in or sell, the erosion of value represents a financial challenge.
