Why Resale Values Look So Low
Many drivers notice that luxury EVs, like the Mercedes EQS, can lose more than half their sticker price in just a few years. At first glance, that looks alarming compared to traditional gas cars. But the real story is more complex.
Much of the “drop” is inflated by high original MSRPs and new-car incentives. Tax credits, rebates, and discounts mean few people actually pay the full sticker price. Once those are factored in, depreciation is closer to what we see with other luxury vehicles.
A Win for Used Buyers
For shoppers in the used market, falling resale values are great news. A car that once cost $120,000 might now be available for $35,000–$40,000 with low mileage. Buyers are getting premium EVs with most of their warranty intact at prices similar to mid-range gas cars.
That makes EV ownership more accessible, especially for people who wouldn’t otherwise consider one new. Lower entry costs accelerate adoption, which is good for the entire EV ecosystem.
Why It’s Temporary
Experts suggest depreciation will stabilize as the market matures. Right now, EV tech is improving quickly, which makes older models feel outdated. Range is increasing, charging networks are expanding, and repair infrastructure is growing. As batteries continue to prove their longevity—many last well over 150,000 miles with minimal degradation—buyer confidence in used EVs will strengthen.
In mature EV markets like Norway, resale values are already much healthier because demand is so strong. As adoption grows elsewhere, resale prices are expected to balance out.
The Takeaway
If you plan to flip cars every two years, steep EV depreciation can sting. But if you buy used or keep cars long term, it’s a massive advantage.
Today’s low resale values may feel like a problem, but in reality, they’re paving the way for more affordable EVs and faster transition from gas.
