Used electric vehicles lost the most value over the last 12 months

As consumers receive their tax refunds, used car sales typically rise. With so many choices, what to buy?

If you’ve ever thought about buying an electric vehicle, a new analysis from iSeeCars suggests there has never been a better time than now. The analysis of over 800,000 five-year-old used car sales from March 2024 to February 2025 highlights a market where EVs are losing nearly 59% of their value, contrasting sharply with the roughly 40% depreciation seen in trucks and hybrids.

The study found that EVs, once hailed as the future of automotive technology, are now depreciating faster than all other vehicle types, with an average loss of 58.8% of their original value after five years. This figure is significantly higher than the overall industry average of 45.6%, and represents a sharp increase from the 49.1% depreciation observed in 2023. Models like the Jaguar I-PACE, Tesla Model S, and Nissan LEAF are among the worst performers, with the I-PACE losing a staggering 72.2% of its value.

"Even Tesla’s Model 3, with the lowest rate of depreciation among electric vehicles, is over 10% higher than the industry average, and it only gets worse from there for EVs," Karl Brauer, executive analyst at iSeeCars, said in a press release accompanying the report.

Trucks and hybrids: Value champions

But maybe you don’t want to purchase a vehicle that is quickly shedding value, even though you may get a bargain price. Trucks abnd hybrids could be a smart choice, retaining their value far better than other vehicle segments. 

Trucks, particularly midsize models like the Toyota Tacoma and Ford Ranger, are losing only around 40.4% of their value after five years. Hybrids, led by Toyota models like the RAV4 Hybrid and Prius, are seeing similar depreciation rates, averaging 40.7%.

“Proving that not all alternative fuel vehicles lose money, hybrids sit at the opposite end of the residual value spectrum compared to electric vehicles,” said Brauer. “These models offer increased fuel efficiency and zero range anxiety, with more consumers hopping on the hybrid bandwagon every day, while helping them hold their value.”