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In iSeeCars’ 2026 U.S. study, five-year-old electric vehicles (EVs) had depreciated 57.2%, compared with 41.8% for the overall used-car market. That makes EVs the weaker group on average in this particular five-year sample—but it does not prove that every EV resells for less than every comparable gasoline car. The study compares EVs with the overall market, not matched EV and internal-combustion-engine (ICE) models.
What the U.S. five-year figures show
iSeeCars analyzed more than 950,000 five-year-old used cars sold in the United States from March 2025 through February 2026. Its segment-level estimate puts EV depreciation at 57.2%, against 41.8% for the overall market.
| Vehicle group | Five-year depreciation | What the figure represents |
|---|---|---|
| Electric vehicles | 57.2% | U.S. segment average in iSeeCars’ 2026 study of five-year-old cars sold March 2025–February 2026. |
| Overall used-car market | 41.8% | U.S. market average in the same study and period; it includes multiple powertrains and vehicle types. |
| Hybrids | 35.4% | U.S. segment average in the same study and period. |
| Trucks | 34.2% | U.S. segment average in the same study and period. |
These are depreciation estimates, not a guarantee of what a specific car will sell for. The overall-market figure is not an ICE-only benchmark, and the study does not isolate the effect of powertrain by comparing otherwise similar EV and gasoline models. iSeeCars Executive Analyst Karl Brauer said EVs were losing value faster than any other segment in the study, outpacing its industry average by more than 15 percentage points. iSeeCars’ 2026 analysis
Why “EV versus ICE” is not a one-size-fits-all comparison
A resale comparison depends on what is being measured and which vehicles are included. Depreciation is the decline from a vehicle’s original value; retention is the share of that value remaining. A study of actual used-car sales, a snapshot of listings, and a projection of future auction values can each tell a different story.
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- Match the market and dates. A U.S. estimate for cars sold over a particular year should not be treated as a global result or a forecast for a later year.
- Match age and holding period. Five-year depreciation is not directly comparable to a retention rate for three-year-old cars.
- Match the vehicle. Body style, model, trim, mileage, condition, and demand can matter as much as powertrain. A broad EV average cannot establish the likely resale value of a particular electric SUV versus a particular gasoline SUV.
- Check the evidence type. Realized sale prices, listing prices, and projected residual values are different measures, not interchangeable proof of resale performance.
How the picture changes by market and year
The International Energy Agency’s 2026 comparison shows that value retention has moved differently across regions and periods. In five European markets, the IEA reports that battery-electric vehicle (BEV) retention fell from about 50% in 2022 to 35% in 2025, while retention for the overall market fell from around 60% to 50%. In China, three-year-old electric-car retention was about 46% in 2024, compared with about 55% for the broader used market.
Retention means resale value as a share of original purchase value: in the IEA’s explanation, a 70% retention rate means the vehicle has lost 30% of its original value on average. These regional figures are not directly comparable with iSeeCars’ U.S. five-year depreciation results: the age groups, markets, time windows, and data sources differ. The IEA chart uses year-end values and could not adjust for the average age of vehicles sold. It also labels U.S. 2025 retention as an estimate because data were unavailable. IEA regional value-retention chart
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What may drive weaker EV resale values
The IEA points to factors specific to the markets and periods it discusses, rather than one universal cause for EV depreciation:
- New models and technology: In China, rapid battery-technology advances made newer EVs more attractive. Concerns about battery health and costly major repairs also weighed on older models.
- New-car pricing: The IEA identifies Tesla price cuts as a factor in the sharp U.S. used-value reversal in 2023. When new vehicles become cheaper, used examples may need to sell for less to remain competitive.
- Incentives and policy: The expiration of used-EV tax incentives in the United States in 2025 was another influence noted by the IEA. Eligibility and incentive rules can change, so buyers and sellers should check the rules in effect for their location and transaction.
- Supply and demand: Pandemic-era supply constraints lifted used-car retention broadly in several European markets in 2022. As supply and demand rebalanced, retention declined, with BEVs weakening more noticeably.
Discounting, used-car supply, battery expectations, policy incentives, and a model’s popularity can all shift resale outcomes. The IEA’s explanations describe the markets and periods it analyzed; they should not be applied as a diagnosis of every EV or every year. IEA, Global EV Outlook 2026
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Model-level awards are useful, but not a matched comparison
Kelley Blue Book’s 2025 Best Resale Value awards named the Tesla Model 3, Rivian R1S, Porsche Taycan, Lexus RZ, and Rivian R1T among category winners. The awards are based on projected residual values for 2025 model-year vehicles, not realized prices for every car and not direct comparisons against equivalent ICE models. KBB describes its residuals as projected future auction values for vehicles in average condition with 75,000 miles after five years. They can help show that EV resale prospects vary by model, but they do not overturn or confirm the broad segment averages. Kelley Blue Book’s 2025 award announcement
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What resale means for total ownership cost
Depreciation is only one part of what it costs to own a vehicle. A University of Michigan analysis published January 27, 2026, used 260,000 U.S. used-car listings collected in 2024 and found that BEVs depreciated more rapidly in the first several years, then followed similar patterns afterward. The study also calculated total cost of ownership, which is a separate result: it should not be treated as a resale-only conclusion or as proof that one powertrain is cheaper for every buyer. University of Michigan Center for Sustainable Systems analysis
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How to apply the evidence to a car you may buy or sell
- Compare close substitutes. Look at the same model year, body style, trim level, mileage range, condition, and local market where possible. A national EV average is a starting point, not a quote for an individual vehicle.
- Use recent local transactions where available. Confirm whether a figure reflects completed sales, asking prices, or a projected residual. Do not read a listing price as proof that the car sold for that amount.
- Account for new-car pricing and incentives. Check current manufacturer discounts and applicable local incentives; changes can alter the value proposition of a new car relative to a used one.
- Assess the specific EV’s battery and condition. A model-specific battery-health assessment and a qualified inspection can help evaluate an individual used EV. Neither guarantees its future resale price.
- Estimate your likely ownership period. A five-year average may be less relevant if you expect to sell after two years or keep the vehicle well beyond five.
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