Will Electric Vehicles or Traditional Gas Cars Have Better Resale Values?
The transition from gas powered vehicles to electric and hybrid vehicles is sweeping the nation. Although the change is good for environmental sustainability, it’s less clear whether EV or hybrid vehicle purchases are a good financial investment for vehicle owners. There is much debate surrounding whether an electric vehicle is a good purchase in comparison to a traditional gas-powered vehicle, as well as uncertainty surrounding future resale value of EV and hybrid vehicles.
Advancement in Batteries Makes New Electric Battery Models More Affordable
As it stands, current owners of older model electric vehicle are in a sticky situation. As improvements in battery technology in EVs and hybrids are being made, the price of the batteries are dropping. Since batteries in these vehicles make up more than 50 percent of the vehicle’s value, the overall price of electric-powered cars is coming down.
With the advancement of EV batteries in new and future models also comes a drop in resale value in older EV models. The lower quality and life expectancy of batteries in older models of electric vehicles make them harder to sell. In fact, the average resale value of these older EVs and hybrids is less than 40 percent of the original value.
Gas Powered Vehicles Hold Their Value Over Electric and Hybrid Models
In comparison, traditional gas-powered vehicles currently have a better resale value of 50 to 60 percent of their original valuation. Evidently, people still prefer gas-powered vehicles over EV. Some reasons might include concerns over charging stations, convenience, battery life and style.
Another factor affecting EV popularity are changes in consumer preferences. SUVs and trucks have significantly risen in desirability over sedans and cars, and there are still few options for EV and hybrid SUVs and trucks.
Hope for Hybrids and Electric Vehicles
The news is certainly not all bad for electric vehicles. With more companies committing to transitioning entirely to EV models in the not-so-distant future, the used EV market is sure to improve over time. Plus, more hybrid and electric vehicles are being designed to better appeal to current auto shoppers.
There are some battery-powered SUVs coming on the market to compete with the highly sought-after gas-powered models. With the improved battery life, EV Crossover models like the Tesla Model X are expected to keep their resale value.
Tesla is ahead of the game in resale value and depreciation. Other brands like Jaguar, GMC and Volvo are attempting to compete in the EV market in the future with all EV or hybrid models within the next couple decades. Problems and concerns over charging stations and battery life are sure to lessen as technology and infrastructure catches up to the proliferation of EVs.
The government’s added incentivizes like rebates and tax credits for the purchase of electric vehicles and charging equipment could persuade people to switch from gas powered vehicles to electric and hybrid. This uptick in demand may drive up the value of these vehicles.
When Is the Best Time to Sell My Car?
Regardless of whether you have an electric vehicle or a gas-powered car, now is a good time to sell. The prices of preowned vehicles are at historic highs after the pandemic, which is great news for people who want to sell their cars.
According to Edmunds, the shortage is expected to last until 2023. With the scarcity of even EVs and hybrids, you are likely to get a great price for your vehicle. If you are concerned about the value of your EV or hybrid decreasing, now is the time to sell!
Gas-powered vehicles will not be phased out for a long time. As long as the traditional car, truck and SUV industry continues to make a profit, they are going to keep pumping out new gas-fueled vehicles. Ultimately, the resale market for both EVs and conventional vehicles is up to auto consumers collectively.
If you are looking to sell your car, Easterns Automotive can help. We will buy your car and give you an offer within three business hours, whether you have a battery-powered or gas-powered car.
All you have to do is visit our website and complete a submission form that takes just five to seven minutes. Sell your vehicle today and purchase a high-quality preowned car, truck or SUV. If you have any questions about the resale value of your EV or hybrid, call us at (888) 650-4775.