Depreciation of a vehicle refers to the difference between the value of a vehicle when you buy it and when you sell it, with those that depreciate less, offering more of a return later down the line. Many factors feed into deprecation rate from how popular a model is, how well kept the vehicle is and how old the vehicle at the time of sale. The biggest depreciation of vehicles tends to be felt in the first 1-3 years of ownership, with a third of the value being lost the moment it is driven off the forecourt. Thankfully electric vehicles can be a good solution for anyone worried about depreciation.
Popularity is Rising
One thing is certain, the popularity of electric vehicles is rising, with a climb in numbers on the roads every year. In 2019, 72,770 new plugin cars were registered in the UK, which was a significant increase from the previous year’s 60,155! As more and more legislation are passed to reduce greenhouse gases, and EV chargers become more accessible, easier to install at homes and properties, they are only going to be more in demand!
Compared to Other Fuels
The deprecation of electric vehicles stacks up well compared to petrol cars, which tend to lose their value the fastest, with diesel cars following closely behind thanks in part to the recent controversy surrounding the diesel emissions scandals. With the UK set to ban the sale of new petrol and diesel cars in 2035, any vehicle running on these fuels is likely to see a drastic drop in demand and price. On the flip side, electric vehicles are likely to be the most sought-after type of car, running only on renewable energy that can be refilled using an EV charger at home, work or when out and about.
The increase in energy tariffs which offer cheap off-peak prices for renewable energy, is also helping renewable vehicles hold onto their value. Whether its an EV charger installed at home, or at work, this shows a demand in the market for these vehicles both commercially and residentially.