Study finds electric vehicles lose value more quickly than gasoline-powered cars

In what could be a troubling sign for the electric vehicle market, a recent study found that prices of used EVs dropped far more than comparably aged gas-powered vehicles. NBC News' Christine Romans reports.
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#ElectricVehicle #Automobile #Value

[@Thrawn90]

Did I seriously just hear a full grown adult call his car an investment. 😮‍💨

[@sookainian]

I think his “investment” was meant for potential “fuel saving”… he is saving on fuel cost but losing more on depreciation

[@Madraxoo]

it is if hes using the car as part time gig job

[@rocketboostjump]

If you use it to go to work it's an investment. No car no job.

[@aj555541]

I came here to say this!!

[@kingcatx2]

@@rocketboostjump car dependency in the US is criminal.

[@mendezcreative]

Cars aren’t investments guys. Smh

[@UDKUntukDikenang]

Exactly

[@mikeshafer]

Thank you!

[@PBorn-cm3sj]

Not investment, but you don't want your cars depreciated too fast. 😅

[@davidpar2]

That goes double for electric ones

[@FrankGallagherr]

Yeah idiots

[@nickg2561]

"I want to sell it because the value is plummeting" .....that is the stupidest statement I have ever heard.

[@occamsrazorblades]

Ah. The buy high, sell low investor. I make good money off of them.

[@Anhedonis]

If the value is plummeting, then it is still plummeting, which means it’s better to sell before it hits bottom. Or to put it another way, if your $80 Enron stock plummets to $40, you are still better off selling it at $40 than at $0. Now if the guy said he wants to sell because the asset has hit rock bottom and can’t depreciate any further, then yeah, that would be dumb.

[@WindFireAllThatKindOfThing]

It's how I scored my house in '11 for a song. Not gonna lie, I LOVED the sub-prime mortgage crash. Got to watch landlords and flippers lose their arses, and poor people with 2 jobs actually able to make rent for once. The economy didn't 'crash' for you if you made less than 100k then.

[@shaider1982]

​@@occamsrazorblades perhaps is more like meeting a reasonable cutloss

[@kxmode]

Sounds like bitcoin/NFT investor

[@mikeshafer]

On the plus side, the purchase price of used EVs is fantastic !

[@patgnz3690]

😂 he called his car an investment 🤦🏻‍♂️

[@seattlekarim964]

This needed a study?

[@cubedtothex]

Mistake #1, buying a car as an investment.

[@samgriess438]

how do i deliver for my company then?

[@cowarddonnie-ji5yz]

​@@samgriess438I don't think you understand accounting

[@samgriess438]

@@cowarddonnie-ji5yz i dont think you understand the statement vehicles are investments for COMPANIES

[@cowarddonnie-ji5yz]

@@samgriess438 again, I'm not sure you even understand basic accounting, vehicles are never listed under INVESTMENTS in ANY COMPANIES on earth.

[@samgriess438]

@@cowarddonnie-ji5yz apparently you have never ran a company, you know how to run your ignorant mouth and thats about it

[@bengaltiger96]

Spoiler alert: for the most part, cars are not an investment. Not a good one, anyway.

[@dariuszcisowski]

It's an iPhone on wheels 😂🚗

[@SLIMRISKY]

Alamo, enterprise, national, hertz, would argue your statement

[@kevn33]

Yeah I was thinking the same thing. If that's how this guy is investing his money he's got Big problems.

[@guybeingaguy]

UPS, Fed Ex and the entire delivery industry would argue your statement.

[@guybeingaguy]

@@dariuszcisowski You’re not wrong. Read my other comment…. What if the car essentially didn’t even have a computer OR battery. Battery is a USB you plug in. Check! Phone has driving apps and Bluetooths to the car and off you go. The car is just like a box on wheels. All the good stuff you brought with you. Don’t want your wife driving your car, EVER? Block her number, car won’t start. Dream big and smoke weed often!

[@aavvcc]

The only time I would call a car an investment would be if it was part of a car collectors’ fleet.

[@LamarA-bq1zz]

Didn't take a rocket scientist to figure that out.

[@PeterSedesse]

" I want to sell my Tesla because the value has dropped so much " This is probably the dumbest thing you can say. Just drive it until the wheels fall off. Warren Buffett was driving 20 year old cars....

[@CyrusTheVirus187]

After someone sees him on the news saying that, they'll offer him 3 dollars max for his tesla

[@monicarenee7949]

I plan to drive my model 3 for about 10+ years total like I did my Honda civic. My Honda I bought for like 16k and it was only worth like 2k when I was done with it lol I definitely don’t buy cars to sell them

[@CyrusTheVirus187]

@monicarenee7949 we only live once switch up cars like we switch up women I mean are you going to eat just one kind of food for 10 years too ? Or say only one word for 10 years ? Or don't move for 10 years ? It's 10 years you might not have soo buy diff cars like you do with your meals

[@CyrusTheVirus187]

@monicarenee7949 tbh you guys are the sharpest tool in the shed ahha I bought 3 cars for 5k in 2020 and they all work perfectly and they're not no bandwagon teslas haha

[@realnapster1522]

@@monicarenee7949it won’t last that long 😅

[@georgemaximus694]

Why is buying a car considered an “investment”. Do people buy cars thinking they can sell it for a profit?

[@aavvcc]

Probably. They are equating it with real estate.

[@olivergoncalves1217]

George, it can be an investment if your buying the right car. In this case, we would have to compare apples to oranges, which no one likes to do. It is however, a long-term investment which you can get more out of if you can do your own basic work, oil, breaks, alternators, belts, etc. It's a long-term bet where the payout isn't huge but can work in your favour in a number of ways.

[@CyrusTheVirus187]

For the low iq people , yes they think it's a profit like new pokemon cards hahaa

[@thanosianthemadtitanic]

​@olivergoncalves1217 thats more of a covience than a investment and any real investor wouldnt conflate the to.

[@Hugo-py2ce]

Im so sick of this news media.

[@koda3967]

Bye! 👋🏼👋🏼

[@Hugo-py2ce]

@@koda3967 bye bye news media👋👋

[@WindFireAllThatKindOfThing]

It's for sale, you know. Pay the right dudes and they'll say whatever you want

[@d.carter3850]

In other news, water is wet... and later, we'll answer the question, is ice cold?!

[@HarmonixsLoL]

Ice loses it's coldness overtime. As soon as you take it out the freezer, it loses value lol

[@almontoya5703]

Once battery becomes on par, that'll change

[@derekschneider8922]

But they had the chance to experience the newest technology before anyone else. Pay the price

[@fleabag2mr.151]

A vehicle is not an investment so never, ever buy a new vehicle. Buy a 3 year old low mile vehicle instead at half the price.

[@user-rk3ho3lc5q]

That joke of a guy is calling his Tesla an "investment." lol

[@thanosianthemadtitanic]

no joke one of the guys i knew call his tesla the same thing. He legit spent his house money on it. Craziest thing ever heard of.

[@peppermintaviation]

Felipe, you haven't lost anything until you actually sell it. It's like the gains or losses in your stock market portfolio...they are not real/realized until you actually sell the stocks. Also, name any other car that has reliable updates AFTER you buy it...things like the integrated turn signal camera view on your center display...all improvements after you bought the car.

[@mitchnn]

Badly flaw report. The depreciation in past year cannot be used as assumption for future devaluation. The large depreciation was mainly cause by manufacturer steep discount price due to the excessive price increase 2-3 years ago.

[@maxpayne7419]

Consumers don’t think about depreciation on an EV. It’s a MASSIVE hidden tax.

[@js6728]

and yes, but you need to include a battery exchange in the sale of the vehicle, 1 or 2 of them, when they are eligible.

[@silvy7394]

Broh we aint worrying about 30 years later when you need to replace the battery.

[@thanosianthemadtitanic]

stares in horror at eletric maserati and bmw i7😮

[@jaym9846]

Whatever energy is readily available, man will find ways to exhaust it at fast as possible.

[@guybeingaguy]

Not 100% sure but I thought there was no govt incentive on used EV’s . Only the original buyer gets all the financial “perks”

[@Anhedonis]

No, there is, and the battery source is not a factor. But it’s less than half for new, domestic sourced batteries.

[@user-jb2om7cm8m]

You nailed it- especially when the original buyers were mainly corporate fleets. Tax write offs, Carbon credits, ESG scores, etc etc... the added value of all the perks, is ultimately what they lose when they sell the car- for whatever people think it's actually worth.

[@guybeingaguy]

@@user-jb2om7cm8m I would argue “mainly corporate fleets” Here in Fort Lauderdale/Miami they are EVERYWHERE! The see and be seen, latest fad Starbucks mocha something crowd. Went to Atlanta, same thing. I’d Imagine all the other big metro areas are the same. The only way your claim to have the tiniest chance is if corporations changed the ENTIRE FLEET. I don’t know of ONE that has.

[@silvy7394]

No you get a credit for buying a used EV too now.

[@rauserbegins5850]

Guy buys brand new car; is horrified at how fast it loses value. 🤣🤣🤣

[@wavargasmolina]

What about the maintenance costs?

[@glenclarkchidley3637]

Why do people refer to their car as an “investment”? That has never been true!

[@mikecleartalk]

Technology development. Tesla can make their car cheaper. First cell phone was like $4000 with a brick size.

[@Sidicas]

You buy low, sell high. Not buy high and sell low. What you doin, silly people.

[@hansolo8225]

Cars are depreciating assets. Be smart and buy a reliable used car.

[@andis9076]

I'm scare of battery replacement bill when buying used EV car, which almost the price of the used car itself.

[@evgrid2628]

Nobody want used worn out batteries. Way, way to expensive to replace

[@scottstevens2752]

Who would buy those piles of crap?

[@TimJoseph08031990]

Luxury and exotic cars also depreciate a lot.

[@jessieheeet]

Meanwhile, hybrids are being sold over MSRP.

[@PelosiStockPortfolio]

On one hand they say it is bad that used EV prices drop so much. On the other hand they will say that EVs are too expensive to afford. Just more FUD

[@ntsejfamyaj]

A good 1/3 of the cost is the battery. So you'll obviously need to consider depreciation related to battery life and future replacement. Duh? So buying a used EV with a replaced the battery could hilariously be cheaper than a new one.

[@BryceLovesTech]

With a $4000 used EV tax credit I’ve had a dozen friends buy used Teslas. There’s some incredible values out there.

[@oaka7616]

On this day, the first guy talking about losing $30,000 on his investment car was the dumbest person in the US.

[@DavidStewart-np3cj]

Yes we know cars are not a investment. But that being said, you don't just throw money when a Maxima does the same thing, looks as just as good

[@Purple-Shadow916]

I dont buy cars to invest, I buy them to take me to places.

[@geraldkohar]

It is a common knowledge that buying a new car has never been an investment. As soon as you take it out of the dealer, the value drop by at least 15%.

[@xentaza]

Haha imagine driving a five hour destination just to recharge a car for 30mins to an hour

[@kennymiles1481]

The lack of retractable sunroof is what turns me away from Tesla. They used to have it and choose to go away from it. I just can't do a car without one.

[@jeraldb2868]

0-60 in 2.9 seconds and $65k-$30k in 2.9 months 😂😂😂

[@iancollins8159]

Same with gas cars but the difference is EV's last longer

[@retailornothing9210]

@@iancollins8159 EV’s haven’t been on the market that long for you to make that ‘space cadet’ assumption about gas cars. EV batteries are half-life. …and besides, no EV will out last my classic 1992 Toyota.

[@iancollins8159]

@retailornothing9210 Dude you drive a 92 toyota!! Who's the "space cadet"???🤣🤣🤣 Gimme a call on your "rotary house phone" so we can discuss this!🤣🤣🤣🤣

[@CyrusTheVirus187]

​@@iancollins8159not with weather changes or if someone threw a magnet on your car

[@2seep]

@@iancollins8159my man Gasoline cars have been proven to last over 300k miles with proper maintenance. EVs at thought to last longer because it has almost 0 maintenance. Once the better degrades the car is practically junk.

[@andresrivera4965]

Bought a model 3 for 55k 2 years ago and elon musk decides to lower the price of new ones plummeting the value of my car. The problem with this is as someone who likes to trade in cars every 2-3 years now i cant

[@monicarenee7949]

He said he would be lowering the price of model 3s, the goal was to always get to a 35k model 3. I say this as someone who bought a model 3 in 2018 when they first came out. I don’t get why this is news to everyone, especially Tesla owners.

[@SuPeRCIViC619]

Cars are not an investment, they’re a depreciating asset. Learn the difference 🤦‍♂️

[@SequoiaGuy09]

Hybrid car is much better! In Cambodia people sell their Prius and Prius being bought again so Prius has high value

[@bencarter2308]

Maybe resale is lower. But Tesla have the least expensive maintenance over 10 years of ownership according to Consumer Reports just released. Also, the battery and engine have a much longer lifetime on average than ICE engines.

[@Charlay_Charlay]

Its not an investment....it never was.

[@Alec15000]

It’s because of the tax credit too.

[@crasuswolf]

Remember Hertz?

[@HomesteadEngineering]

This is a very misleading story. The "loss of value" is mainly due to Tesla reducing their cost and then reducing their prices for NEW cars. That make it look like a loss of value relative to what you paid for it. If you look at the difference between a NEW Tesla and USED Tesla there is very little loss. The point is, EV's are loosing value because NEW EV's are coming down in price. Once the price reduction levels out to a steady state, they will hold their value better than ICE.

[@monicarenee7949]

Exactly, and that was always Elon’s plan, to be able to reduce the price over time. It’s a good thing lol

[@ntsecrets]

Just wait for the next gas shortage

[@Anhedonis]

Red flag warning. In these studies, the comparison is for the transaction price of the vehicle when it is purchased vs when it is sold 3, 4, or 5 years later. The trouble is the tax incentives cut down the price of the vehicle by say, $7500. So these studies should be using the net cost instead of the transaction cost. So EVs purchased for $40,000 and sold years later for $20,000 would show a 50% depreciation, when really it should be more like a 33% depreciation because the car went from 32,500 to 20,000 instead of 40,000 to 20,000.

[@nbagoats4819]

When they drown you with technology you began to lose the reason behind owning a car in the first place. To get from point A to point B.

[@thanosianthemadtitanic]

when was a car ever a inevstment?

[@maxpayne7419]

I’ll stick to my ICE vehicle that depreciates at a normal rate, and costs MUCH less than a comparable EV.

[@ChiRusNkFUSA]

By the US media though….

[@ibmtpx24]

0:37 "This investment, I will lose over 30,000 dollars." Oh you funny boy calling an EV an investment.

[@jeffperteet2327]

Do better designers

[@howardjessica7704]

Yup. An IPhone on wheels can be made cheaper than the previous one. So, yeah tech tends to get cheaper. Remember how much cd players cost at one point? Earlier adapter’s gripe

[@olivergoncalves1217]

Its the battery issue. No one want's to get stuck replacing a 10K battery on an electric car.

[@kevn33]

The last first gen Volt battery I quoted was $15,000 and possibly up to a year wait. That's overhauling the battery which only includes the three (brand new) battery sections. Some of the wiring harnesses that get corroded are discontinued and cannot be repaired since the terminals are not available. That pretty much brings the overhaul to a screeching halt. But you'd get your old rusty battery tray back, old modules, old contactor assembly and everything else back. It's not like you're getting a whole complete new battery assembly, that would probably cost $30,000. The worst part about the situation is that the car is only worth about $5,000, but now it's worth next to nothing because it needs batteries. So far the second generation Volt batteries are holding up much better than the first generation.

[@heyaisdabomb]

@@kevn33well the volt is the worst of all worlds. In a well built EV, you will get 150,000 to 200,000 miles before you need a battery replacement, while the average ICE car will only last 132,000 miles. So… it’s not the battery cost, it’s all of the FUD that the gas and oil industry has created with mis-information to confuse the average consumer. This was predictable. EV’s are slated to be cheaper to produce than ICE cars by 2026, and we will see a decline from there even further. There are no more ice cars new under $20,000, but we will see sub $20,000 evs in the near future, and batteries will continue to drop. We have a moorse law in reverse happening for battery costs., which is in part why the new car prices keep coming down. They can still make the same profits because they keep getting cheaper to produce. The early adopters in a new technology always pay for the R and D.

[@olivergoncalves1217]

@@kevn33 15k, huh? ouch. Apparently electric cars are going to become a big problem for our electrical grid once ownership hits the 30% mark (give or take) as we don't generate enough electricity to charge all these cars. We should be focusing on HYBIRD cars at this time for at least another 20 years or so. Apparently you can't easily extinguish a battery fire either and this is causing problems for firefighters.

[@Chad_Max]

It’s batteries, insurance, cost of repairs, etc. The average consumer will never go from $5/gal of gas and $80 oil changes to the thousands of dollars that it costs to fix an EV…

[@olivergoncalves1217]

@@Chad_Max Yes. I bought a new combustible jan 2023. was looking at ev's but the dollars to ownership ratio made no sense to me. There was no way an ev was going to save me money, and lets consider how poorly a battery behaves in our cold climate...! We need 10 more years before ev costs are at the right point for mass ownership.

[@maxpayne7419]

The overall cost of EVs is staggering. I don’t understand why anyone would buy one.

[@monicarenee7949]

I’ve saved money with my EV. I don’t understand how it’s staggering. I don’t pay for gas or oil changes and my only maintenance has been getting tires rotated. I’ve had my car 6 years. In 6 years the value has depreciated to about 40% its original value, which is exactly what you’d expect for any car.

[@DG-hw8it]

Different charging plugs worldwide don't help neither! 🍔

[@oraimo3728]

Yall needed a study?

[@RiSkyNick]

Never treat a car as an investment. It's just a necessary evil of modern life...

[@Yodaddy303]

It’s an investment in transportation to seek funds.

[@johnshen1918]

Battery life affects resale value - duh

[@benben6054]

You don’t need a study you see it

[@luiscuba803]

I heard 10k and up just to replace the battery.

[@Purple-Shadow916]

My Q50 hybrid cost 16 grand for parts only and the battery is tiny compared to Tesla. SMH

[@Anhedonis]

Comes with the territory of being an early adopter. It will continue this way until batteries become dirt cheap.

[@delta_glider4362]

@@Anhedonis It wouldn't be dirt cheap and it recicling is so dirty that e-car green energy makes me laugh

[@CyrusTheVirus187]

Auto zone sells battery for 100 bucks

[@YT-glockstreamer]

That's why I waited to get a ev now I can get a ev 2014 for 12000 I'm so excited love it

[@silvy7394]

This is funny given my EV's value over the last 2 years almost doubled. I could sell it for more than I bought it right now. If course I havent because I like it, and my car isnt an investment. I bought it and plan on driving it for the next 40 years until it breaks down.

[@CyrusTheVirus187]

Haha in the next 40 years I plan on driving 40 different more cars I mean we only live once are you only going to eat one thing for the rest of your life too ? Or say one word only ?

[@silvy7394]

@@CyrusTheVirus187 Why would I buy a new vehicle? I plan to get an SUV for towing a trailer, but otherwise I like my car and have no need to replace it. Newer ones still do the exact same thing on 4 tires.

[@victorlin4645]

I don't know why it's so hard for people to think just a few years down the road and not just the current range anxiety / charging infrastructure issues. All EVs will have a MASSIVE battery replacement cost of tens of thousands of dollars WAY before a quality gasoline / diesel car will face a similar repair cost in transmission or engine. So yeah, OF COURSE any EV will depreciate by a huge margin just from this fact alone.

[@mihadalzayat6957]

I will never ever own another gasoline car again.

[@user-wx9nt1fv9z]

Who want a EV. When there are a lot of classic cars.. there are people out there with classic car collecting. Classics car are like art museum.

[@brianszymanski2971]

Oh really...

[@timtim2668]

Of Course. New Technology for transportation. Momentarily. This will reverse soon. One more monumental shift or improvement in technology or battery technologies

[@bigdapramirez6157]

I can understand car dealers being mad but isn't this a good thing overall for consumers since prices will be cheaper? Unless these consumers wish to own it and sell it a few years down the road

[@trailerhaul8200]

Cars are not investment. But without cars, you can’t go make money to invest

[@danburns3759]

Ah, maybe because the manufacturers have huge discounts and incentives on new EVs. Demand for new EVs has plummeted, manufacturers are cutting production and laying off EV plant workers. A $7,500 government tax incentive is not getting it done either.

[@silvy7394]

Where does it say that? EV sales keep hitting records. Production keeps increasing to attempt to keep up with demand.

[@hpph1744]

Depreciating assets are not investments. ❤

[@deec9502]

Don't take investment advice from that guy.

[@denniscarver7681]

You research than test drive vehicles. How much does it cost to maintain, insure, operate. Than drive it maintain it for well got 1993 running.

[@Joseph_Ta_00]

Luxury car as an investment??

[@lindaweber5599]

Duh.

[@brucewilliams2106]

there was a time when the industry could have stnadardized batteries and made them easy to swap. Repubs killed that idea.

[@flamboyantstudioscom]

Sounds like buying a low mileage EV would be smart.

[@happytrails1963]

they drop so quickly

[@WindFireAllThatKindOfThing]

Just like a BMW

[@83dsvhtubb]

But you’re able save money by not buying gas

[@CyrusTheVirus187]

But your electricity bill will be higher than how much your gas cost ahhaha

[@turtsable]

If you think a car is an investment you deserve this hard lesson…

[@erich84502b]

😂😅when the batteries go dead for the last time they cost more for new batteries than a whole car. Many offload them like a total loss or write off writedown. You can replace batt sections for less😅😂

[@punapeter]

No kidding, no one buys your old VCRs either do they. USED Electronics? LOL I'll stick with my 92 year old 32' Chevy 4x4 Truck. I BUILT. Sewing machine cars? Well you can still use a 100 year tredle Singer too. New is not better, especially DISPOSABLE Tech Electric. I could sell my truck for double what I put into it. Each year it gets older it's worth more. In 8 years on it's 100th year birthday I'll stop driving it and mount it as Art.

[@TAL142]

Last time I sold my gas car. I got $150 for it. Actually this doesn't make sense at all. This is probably another attempt to keep gas car market going.

[@CyrusTheVirus187]

Duh they all talking from dealer ship parking lots

[@huntermurray3242]

good time to buy a used one then!!

[@HappySMilesforJoy]

Are comments removed just because they may counter this narrative. Is that honest reporting to stop or shape the dialogue the report may induce. It’s funny tho because I often see the same comments so many times and yet click “newest” you get some interesting gaps of commentary. Which is unusual unless it’s a news story that pushes a narrative. Odd that way huh

[@user-vp1sc7tt4m]

This is Click and News Bait. You drive a car off the lot and the value drops dramatically. That has always been the case. You never buy a car as an investment. Tesla's have maintained value in the past and some popular low production cars did as well. Time changes demand. Always treat a car as expendable. They are not investments.

[@mikeshafer]

It must be a slow news day if your only video is “new cars lose value fast”. Didn’t everyone learn in middle school that you should never buy a new car? Now I have bought a Tesla and a Rivian - both new - but I could afford them and they are so fast that I would be foolish to suffer with gas. Yet the media brings out one dude who complains about that one road trip he takes to Florida every year and how it will take him an extra two hours to make it, and another dude who wants to sell his Tesla because it’s losing value. Wow. Slow news day indeed.

[@BeachcomberNZ]

ICE vehicles usually have a life of at least 15 years and at least three owners over that time period. Current EV's will never have the same operational parameters, which makes them far more of an environmental drain than ICE vehicles. Virtually no current EV will ever get beyond a second owner, if that.