Most depreciation content tells you the 5-year number and stops there. That’s not actually the useful question if you already own the car — what you need is where you sit on the curve right now, and whether waiting another year helps or hurts. Here’s the one number that’s actually measured, and an honest, transparently-built model for everything in between.
Key Numbers
- The only rigorously measured EV depreciation figure is iSeeCars’ 5-year study: EVs lose 57.2% of value by year five (2026 data), against a 41.8% market average.
- That number isn’t stable year to year — iSeeCars’ own historical data shows EV 5-year depreciation at 67.1% (2019) → 49.1% (2023) → 58.8% (2025) → 57.2% (2026) — it worsened before it improved.
- There is no official, publicly measured year-by-year EV depreciation curve — only 3-year and 5-year totals get studied at scale. Anything showing “year 1, year 2, year 3” percentages is a modeled estimate, including the one on this page.
- New-vehicle depreciation for any car, gas or electric, is heavily front-loaded — the steepest single drop happens the moment a car is registered and becomes “used.”
Short Answer
The only hard, measured EV depreciation number is the 5-year total: 57.2% (iSeeCars, 2026). Everything about the shape of the curve between year zero and year five is a reasonable model, not an official study — this page builds one that’s mathematically anchored to that real number rather than an assumed constant rate. The general pattern holds regardless of the exact model: the steepest single drop happens in year one, the curve flattens meaningfully by year three, and selling right before a major reason for value to drop further (an out-of-warranty repair risk, a new model-year range jump) usually beats selling reactively after it happens.
The One Number That’s Actually Measured
Every specific EV depreciation claim you’ll see traces back, directly or indirectly, to iSeeCars’ 5-Year Depreciation Study, which analyzes real transaction prices on hundreds of thousands of 5-year-old used vehicles. The 2026 edition put EVs at 57.2% average loss over five years, against 41.8% for the overall market — worst of any major vehicle segment. What most coverage leaves out is that this number moves meaningfully year to year:
| Study year | EV 5-year depreciation |
|---|---|
| 2019 | 67.1% |
| 2023 | 49.1% |
| 2025 | 58.8% |
| 2026 | 57.2% |
The pattern isn’t a straight line of improvement — it got notably better through the early 2020s, then worsened again in 2025 before ticking back down slightly. That volatility itself is a reason to treat any single-year EV depreciation figure as a snapshot of market conditions, not a fixed law of physics for your specific car.
Building an Honest Year-by-Year Model
Because no large-scale study publishes an official year 1/2/3/4 breakdown, we built our own — anchored to the one real number we have rather than an assumed constant. Working backward from the measured 57.2% five-year loss, and starting from the commonly observed pattern that new vehicles lose roughly 20–22% of value the moment they become used, the annual retention rate for years two through five that mathematically reconciles with the real 5-year figure works out to roughly 14% per year.
| Year | Modeled value retained | Example on a $45,000 EV |
|---|---|---|
| New | 100% | $45,000 |
| 1 | 78% | $35,100 |
| 2 | ~67% | $30,195 |
| 3 | ~58% | $25,965 |
| 4 | ~50% | $22,320 |
| 5 | ~43% | $19,215 |
This model lands within a fraction of a percentage point of the real measured 5-year figure by construction — that’s the point of anchoring it, rather than just repeating an unverified year-by-year claim from elsewhere. Treat every row except year 5 as a reasonable estimate for a typical mainstream EV, not a guarantee for your specific make, model, mileage, or region — our broader depreciation research covers the real spread between models, since a Tesla and a first-generation Nissan Leaf do not sit on the same curve.
Why the Curve Is Front-Loaded
- The new-car premium evaporates instantly. This applies to every vehicle, gas or electric — the moment a car is registered, it’s “used,” and used buyers won’t pay new-car pricing regardless of actual condition.
- EV-specific tech turnover is faster than the broader car market. Range, charging speed, and driver-assistance features have moved quickly generation to generation, making a 3-year-old EV feel more dated relative to the current lineup than a 3-year-old gas car typically does.
- Battery-anxiety discount, not always battery reality. Buyers price in a fear of degradation and future battery replacement cost that, per real fleet degradation data, is usually smaller in practice than the discount they’re applying — meaning some of the early depreciation is buyer psychology, not measured pack health.
Estimate Where Your EV Sits
When Selling Actually Makes Strategic Sense
- Before your traction battery warranty expires (typically 8 years/100,000 miles) — a car still under battery warranty is worth more to a buyer than the same car a year past it, regardless of the pack’s actual condition.
- Before a major model-year update lands on your specific model — a significant range, charging speed, or design refresh on the current generation can make the outgoing version look dated overnight, accelerating depreciation beyond the normal curve.
- Before, not after, a known reliability or recall issue becomes public knowledge — value drops faster once a documented problem is widely known than while it’s still relatively obscure.
- If you’re the kind of owner CPO buyers value — a documented service history and good State of Health reading can be worth pursuing before selling, since our CPO programs research shows battery-warranty transfer is usually automatic by VIN age regardless — but a clean inspection report still helps buyer confidence and negotiating position.
FAQ
Is it better to sell privately or trade in?
Private sales typically net more money but take more time and effort; trade-ins are faster and lower-hassle but usually net less. The gap between the two is worth checking for your specific situation before deciding, since it varies by model and local demand.
Does higher mileage accelerate EV depreciation more than for gas cars?
Mileage matters for both, but for EVs it’s frequently used as a rough proxy for battery cycle count, which can make high-mileage EVs face an extra discount beyond what the same mileage would cost a comparable gas car — checking actual battery health directly, rather than relying on mileage alone, gives a fairer picture.
Will my EV’s specific model depreciate faster or slower than this model shows?
Likely differently — Tesla models have historically held value better than many other mainstream EVs, while some early-generation and luxury EVs have depreciated well beyond the segment average. This model represents a broad industry pattern, not your specific vehicle.
Does waiting for battery degradation data to look better help resale value?
It can, if your specific vehicle has a strong measured State of Health — but depreciation from age and generational tech turnover tends to outweigh whatever benefit comes from simply having more logged, favorable degradation data over time.
Is now (2026) a good time to sell a used EV?
The used EV market has genuinely tightened compared to a couple of years ago, but conditions shift — check current listings for your specific model rather than relying on a general market sentiment to time your individual sale.
The Short Version
The only real, measured EV depreciation number is the 5-year total — 57.2% as of the 2026 iSeeCars study, and that figure itself has moved meaningfully year to year rather than following a fixed trend. Everything about the shape of the curve in between is a reasonable model, and this one is built by anchoring backward from that real number rather than repeating an unverified year-by-year claim. The practical takeaway holds regardless of the exact percentages: the steepest drop happens immediately, the curve flattens by year three, and selling ahead of a specific value-eroding event — a warranty expiration, a major model refresh, a reliability story going public — beats selling reactively after it.
About the author: Written by Shurah, who researches and writes independently on the real cost of EV ownership — charging, maintenance, and total cost of ownership — backed by primary data and original calculations rather than recycled lists.
