New data shows that electric vehicles continue to depreciate faster than other segments, with the Ford Mustang Mach-E ranking among the worst performers over a five-year period.
Despite signs of stabilization in the overall used car market, EV resale values remain under pressure.
Mach-E Among the Worst Performers in EV Depreciation
According to data from iSeeCars, the Ford Mustang Mach-E has lost an average of $22,976, or 60.8% of its original value, over five years.
This places the Mach-E eighth among the vehicles with the highest depreciation, alongside several other EVs and luxury models.
Other vehicles with similarly high depreciation rates include:
- Nissan Leaf
- Volkswagen ID.4
- Tesla Model S
- Tesla Model X
All of these models recorded depreciation rates of over 60% during the same period, according to Ford Authority.
EVs Continue to Depreciate Faster Than Other Segments
Electric vehicles as a category recorded the steepest depreciation of any segment, with an average decline of 57.2% over five years.
By comparison:
- Hybrid vehicles: 35.4% depreciation
- Overall market average: significantly lower than EVs
Historically, concerns around battery longevity and replacement costs have weighed on EV resale values, although real-world data increasingly suggests these concerns may be overstated.
Used Car Market Shows Signs of Stabilization
While EVs continue to underperform in resale value, the broader used car market is beginning to stabilize.
Average five-year depreciation across all vehicles dropped to 41.8% in 2026, representing a 3.7% improvement year-over-year.
Analysts attribute this shift to:
- Stronger demand in the used car market
- Limited supply of vehicles
- Rising new car prices
- Softer consumer confidence
These factors have helped support residual values across most vehicle segments.
EVs Remain an Outlier in Value Retention
Despite overall market improvements, EVs continue to lag behind.
On average, electric vehicles depreciate more than 15 percentage points higher than the industry average.
In contrast:
- Trucks and hybrids lead in value retention
- Strong demand and familiarity support their resale values
As EV adoption grows and technology improves, depreciation trends will remain a key factor for buyers, especially when deciding between buying and leasing.
Final Take
The data highlights a clear trend: while the EV market continues to grow, resale value remains a challenge.
For buyers, this creates opportunities in the used EV market.
For sellers, it reinforces the importance of pricing strategy, timing, and presentation.
Explore now: EV listings, List your EV, EvValley homepage.
