Driving a new car off the lot takes off 20 percent immediately upon leaving the dealership, so it goes, but for EV owners looking for some green for being green, they may wish they’d bought a Toyota Camry instead.
At the request of USA Today, Kelley Blue Book projected the residual values of EVs over a five-year period in comparison (for most cases) with their diesel, gasoline and hybrid brethren. The results? A much lower overall residual value for the pure electric models according to KBB Director of Residual Consulting Eric Ibara. One of the worst offenders mentioned, the 2013 Nissan Leaf (which has no petrol-driven sibling at all) will hold only 13 percent of its $28,000 base price by 2018, while a Sentra SL will keep 36 percent of its $19,500 base in the same period.
The causes? Discounts, incentives and federal tax credits, for one; though owners might not feel the pain as hard when they return their lease to the dealership thanks to heaping helpings of these financial goodies, the overall effect hurts residual values in the same way too much candy hurts your little one’s tummy and teeth. The other is that consumers want to own a new EV more than they want to pick up a Leaf that may need a new battery sooner than later.
Those who opt for plug-in hybrids, such as the Chevrolet Volt or Porsche Panamera E-Hybrid, will fare better come re-signing at the dealership; the latter will keep 37 percent of its value versus 41 percent for the gasoline-only model. Overall, however, the EV market is still in its growing pains, and will remain so for the foreseeable future.