EV depreciation vs the rest

Depreciation is the silent cost of owning a car. The day you take ownership, there is a 20% loss in value due to VAT. Over time, the value of the vehicle also decreases with age, mileage and people's perception of long-term maintenance costs.

Not all vehicles are created equal. For example, a 4-year-old BMW generally has high depreciation because many people like to sell their cars just before the maintenance plan expires. Land Rover is another brand that suffers from high depreciation because people view it as an unreliable brand, with high repair costs. True or not, customers don't want to own an old Land Rover so they don't hold their value.

The latest car to have depreciation issues is the Tesla Cybertruck, where customers are reporting 35-45% value loss after only two years. What makes this more interesting is that during the initial launch of the vehicle there were supply shortages, which resulted in a black market for the Cybertruck at 2 to 3 times the retail price.

EV's in general don't have great resale value. I think this is due to customers worrying about the cost of replacing an expensive battery after ten years. The Cybertruck is also a very unique-looking car, which means there are only a limited number of people who want to buy them. High supply and low demand have resulted in low resale values. Ouch.