Summary

• Electric vehicles face the worst depreciation rates.
• Used EVs like the Porsche Taycan and Mustang Mach-E offer substantial savings after three years.
• Japanese cars are cost-effective and reliable alternatives for budget-conscious buyers.

The automotive landscape has changed a lot over the last decade, from the surge in demand for SUVs, to the rise of electric vehicles. One thing that’s certain is depreciation. Electric cars are mainstream now, but they’re still the worst depreciating vehicles. Thankfully, they level out in year three, making these EVs a bargain for used car buyers.

Even though these are much more affordable than their original MSRP, some are still expensive by used car standards. If you’re on a budget, a cheap and reliable Japan-made car could save you a lot of money in repair bills.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, Kelley Blue Book, CarEdge, and Edmunds. We ranked these cars by depreciation, from least to most.

10 Volkswagen ID.4

Depreciation: 53.6%

Acting as a German alternative to the Tesla Model Y, the Volkswagen ID.4 is a spacious and practical electric SUV. The problem, however, is it’s not as good and was originally expensive at $41,190. Inside, the ID.4 is typically VW, with a lot of plastic trim and basic seats. The minimalist steering wheel looks like a toy, but two digital displays help bring the cabin to life.

Performance Specifications

That said, a claimed 260 miles of range makes this an ideal family SUV for the school run and road trips. After falling over 53% in three years, a used ID.4 is a great deal at $19,113, according to Kelly Blue Book‘s fair purchase price.

Best features

• 260 miles range
• Spacious cabin
• German reliability

9 Mustang Mach-E

Depreciation: 54.5%

When Ford announced a Mustang-inspired SUV, we didn’t expect it to be electric. Despite the lack of a V8 engine, the Mach-E brings an exciting option to an otherwise dull selection of electric SUVs. It keeps the iconic tri-bar light design the Mustang is known for, and the sloping roof and broad shoulders create a sexy silhouette.

Performance Specifications

The interior has a huge portrait touchscreen which makes viewing easier, and has fun games installed. Where a slow 0-60 mph sprint lets it down, a respectable 230 miles of range brings it back up to standards. For $23,372 used, you’ll get a lot of attention driving down the street in this athletic SUV.

Best features

• Sporty design
• Self-driving technology
• Good range

8 Tesla Model S

Depreciation: 57.8%

Costing almost $100,000 new, a used Tesla Model S is a bargain at $40,609. That’s still a lot of cash to fork out on a three-year-old car, but that gets you one of the most impressive EVs available. Even the base model gets 670 hp and can reach 60 mph from a standstill in 3.1 seconds.

Performance Specifications

Best features

• Astonishing performance
• Long range even on standard models
• Rapid charging

7 Chevrolet Bolt

Depreciation: 58.6%

They say good things come in small packages. Well, this electric city car packs keyless entry and start, Apple CarPlay/Android Auto and 259 miles of range. It’s unusual to have so much range in cars this size, since most long-distance drivers typically buy bigger cars. Depending on how you drive, this battery could last well over a week before needing a recharge.

Performance Specifications

Best features

• DC fast charging in Premier trim
• One-pedal driving
• 259-mile range

6 Tesla Model Y

Depreciation: 58.9%

The Tesla Model Y gained pop as an affordable EV with advanced technology, impressive range and ultra-fast charging on one of America’s best charging networks — tesla superchargers. It slotted into the range between the compact Model 3 sedan and seven-seat Model X to bring a mid-sized SUV that’s easier to manage through narrow city streets.

we expect Tesla values to plummet further

Performance Specifications

It depreciated massively in its first year, and continued to drop in the following years, with a three-year-old Model Y costing $27,406 compared to $66,793 when new. Without getting too political, we expect Tesla values to plummet further, following Musks recent TV coverage and fueled hatred towards the eccentric CEO.

Best features

• Autopilot
• Connected mobile app
• Acoustic glass

5 Porsche Taycan

Depreciation: 59.7%

The Porsche Taycan was the brand’s first mainstream EV. Keeping its Porsche soul, this sports sedan comes in various guises, maxing out at 162 mph. To be more realistic, we’ve used the entry-level Taycan, which still has 402 hp and can reach an electronically limited 143 mph.

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Performance Specifications

That performance came at an eye-watering cost of $102,100. Thankfully for used car buyers, depreciate floored the Taycan, losing almost $61,000 in just three years. Ouch. Now, for a smidgen over $40,000, you could get one of the fastest, most reliable and luxurious electric cars available.

Best features

• Drive mode selector
• Handles like a sports car
• Two-speed transmission replicates real gear shifts

4 Polestar 2

Depreciation: 60.7%

Polestar isn’t a new name; it used to be the performance arm of Volvo before becoming a standalone EV producer. However, it’s clearly sticking to its Volvo roots when it comes to design. The Polestar 2 is a niche EV that is most popular with executives. The Polestar 2 has classy sedan styling and is the first car to operate a Google-based system.

Performance Specifications

Though there’s nothing particularly exciting about the 2, it is a great electric car with quick charging times and regenerative braking to extend EV battery range on long commutes. Plus, it’s excellent value-for-money at $24,039 when the starting MSRP was $61,200.

Best features

• Adaptive cruise control
• Regenerative braking
• Vegan-friendly leather

3 BMW i3

Depreciation: 62.1%

Another compact electric car is the BMW i3. This one was an early EV, and many people laughed at its unique design and suicide doors. As time went on, budget and eco-conscious buyers realized they could get an efficient car with heated front seats and cruise control as standard and an available moonroof.

Performance Specifications

Boxy dimensions aside, the i3 is pretty spacious inside, and those doors are more practical than traditional ones when climbing into the rear seats. Once over $45,000, a used i3 now sells for $17,211.

Best features

• Heated front seats
• Sports driving mode
• Navigation with live traffic updates

2 Nissan Leaf

Depreciation: 63%

Before the i3 came the Nissan Leaf — an even more affordable small car with similar levels of standard equipment. It began life at $32,620 and has fallen to $12,058. It taps out at 92 mph, but nobody needs to go that fast in an EV.

Performance Specifications

The future of the long-standing Leaf is at risk, since the Honda and Nissan merger has been canceled. We truly hope the Japanese automaker finds a solution to its financial problems to continue making value-based cars. Perhaps the 63% depreciation on the Leaf is the cause.

Best features

• Affordable entry to EV life
• HVAC timer
• One-pedal driving

1 Audi e-tron

Depreciation: 65.8%

The worst depreciating EV over three years is the Audi e-tron. It’s a fatal combination of being a luxury SUV, electric vehicle, and now redundant. This 65.8% loss in value is Audi’s own doing by releasing the Q4, Q6, and Q8 e-tron models.

Performance Specifications

Regardless, the Audi e-tron remains a stunning luxury EV with plenty of space and even more power. You can’t argue with this package for $22,991, but the 222-mile range leaves a lot to be desired compared to similarly priced EVs.

Best features

• Plenty of power
• Premium badge
• Roomy cabin