3 Electric SUVs With the Worst Resale Values
Electric SUVs are having their moment as they command headlines and hype across the automotive industry. But whether EV SUVs can retain their value over time remains to be seen. According to one report, three electric SUV nameplates offer poor resale value.
Which electric SUVs have the worst resale values?
The Ford Mustang Mach-E, Tesla Model Y, and Volvo XC40 Recharge rank among the worst electric SUVs for resale value. According to Insider, each model has dropped considerably in average list price over the last few years.
1. Ford Mustang Mach-E resale value down year-over-year
According to Insider, used Ford Mustang Mach-Es have dropped in price by 19.1 percent on average. Ford’s first controversial yet critically praised first electric vehicle has shown worse resale value than some of its rivals. According to Insider, its average list price has dropped from over $42,000 in 2021 to just $34,600 in February 2023.
2. Tesla Model Y prices dropped from 2020 to 2023
In a surprise twist, the used Tesla Model Y list prices have dropped by 21.7 percent since 2020. According to Insider, other used Tesla nameplates have seen price increases over the last few years. But while the Model S and Model X prices continue to balloon, the Model Y’s resale value appears to have gone stale.
3. Volvo XC40 Recharge among worst electric SUV resale values
Volvo XC40 Recharge resale values have dropped by 36.6 percent since 2022. It’s the worst of the bunch, according to Insider’s list, shrinking its average list price from 56,681 in 2021 to 35,693 in February 2023. That’s a price drop of more than $20,000.
Used electric SUV prices are unpredictable
Used EV SUV resale values vary considerably depending on make and model.
As Insider points out in its reporting, pre-owned prices for electric SUVs aren’t consistent. While some models flourish, others struggle – even within the same brand family. As the newest shiny toys on the automotive market, EV and electric SUV resale values remain in flux. For instance, some used Tesla models have seen market appreciation over the last few years, while others have dipped in price considerably.
Insider looked at average pre-owned listing prices for EVs produced in the last five years. Here are the worst electric SUV resale values according to the report.
Which electric SUVs have the best resale value?
The Tesla Model X, Hyundai Kona Electric, and Volkswagen ID.4 have the among the best resale values of electric SUVs.
The Volkswagen ID.4 has only lost a small fraction of its value. In fact, Volkswagen’s electric SUV rose in value in 2022 before dropping back in 2023. The ID.4 has lost about 5.4 percent of its resale value since 2021.
Tesla’s Model X and Hyundai’s Kona Electric have gained resale value. The Model X held steady, rising 0.1 percent in average list price between 2020 and 2023. The real winner, however, is the Kona Electric. The compact electric SUV’s resale value rose 10.5 percent between 2020 and 2023, according to Insider.
What influences electric SUV resale value?
Factors ranging from battery technology development to branding hype can affect the resale value of an electric SUV.
On the practical side, a model with a worse battery package and lesser range likely won’t hold onto as much value as an SUV with a better range. That effect might be in play with the Volvo XC40 Recharge, which lags behind rivals considerably in total electric range and has one of the lowest resale values among electric SUVs. We also don’t know exactly how long EV batteries will last – an uncertainty that could play a role in resale value.
On the emotional side, buyers like brands with cool identities. Tesla is a perfect example. The original EV startup has benefited from an endless hype cycle that keeps its models in the headlines and top of buyers’ minds. Whether deserving or not, this process can inflate Tesla’s resale values.
Pre-owned Electric SUV prices remain volatile. But market stabilization may be on the horizon as these types of vehicles become more commonplace and their technologies more proven. Drivers must ride out the electric SUV resale value storm until then.
