While shopping for big values like it is the purchase of a car, depreciation rate is something the highly need to be take in consideration. Car models going from affordable to mid-range, are often tracking close together. Because of that it’s rarely a significant factor. On the other hand when it is about premium and electric vehicles, it’s something which can, apparently, be considerate.
A new study shows that the Tesla Model S is leading vehicle value retention in the luxury sedan segment by an impressive margin, beating its gas-powered counterparts like the Audi A8, Mercedes S-Class and BMW 7 Series.
Model S is losing only 28% after 50.000 miles.
The new study was released today by Autolist. The buyer intelligence firm looked at over 1.6 million data points from January 1, 2012 to August 31, 2016 and compared the depreciation of vehicles in each segment over the number of miles driven.
Autolist wrote to Electrek that when putting the depreciation in context, whereas a Tesla (Model S) will on average lose 28% of its value after being driven 50k miles, a Mercedes S-Class will lose 38%, a BMW 7-series will lose 40%, and an Audi A8 will lose 41%. As a result, Tesla owners end up with considerably more money in their pocket, it was said in the mail to Electrek
The study expanded the results all the way to 100,000 miles driven and found that the Model S maintains its lead: In a class of its own Tesla has the slowest depreciation rate in its segment, even when it is compared to class leading gas powered vehicles
This is interesting while its take in consideration that Tesla Model S losses the $7,500 in value the first day solely. It is based on the fact that no one would buy the car used without a discount equivalent to the federal tax rebate. They would simply buy it new from Tesla and get the rebate themselves. State rebates only make the handicap worse for Tesla. Even so, this electric vehicle is so great at retaining its value that it erases any trace of this disadvantage over gasoline-power cars in its segment.
Based on the study other electric vehicles are not standing as well as Tesla: their depreciation goes at a far quicker rate than their gas powered competition. The Chevy Volt, the BMW i3 and the Nissan LEAF are trailing far behind in term of value retention in their own segment in relation to gasoline powered cars.
Like explained before, the federal tax rebate effect is likely at play here. While it’s great for Tesla owners and not so much for LEAF, i3 and Volt owners, it’s reversed situation for buyers of used cars.
The study looked at used car prices for each model since the beginning of the year and found that used Model S buyers are paying a 5% premium on the already strong value retention of the vehicle, but LEAF, i3 and Volt owners are getting significant discounts: The market prices reflect a premium on top of Tesla’s already strong value retention; other EVs see a discount relative to their already weak value retention.
The study results are, therefore, important to consider for both options while buying new car looking at the used car market.