Depreciation: The Biggest Cost Risk When Buying a Car
Depreciation is by far the largest single item in a car's total costs — larger than fuel, insurance, and maintenance combined. A new car typically loses 30 to 40% of its value in the first three years. For EV buyers, the question is particularly relevant: Do electric cars depreciate faster than combustion engines?
The Current Residual Value Situation for EVs
EV residual values have stabilized significantly from 2024 to 2026. After a slump in 2023, when Tesla's massive price cuts unsettled the used car market, prices have recovered. Battery warranties of 8 years or 160,000 kilometers from most manufacturers significantly support residual values.
Typical Residual Values After 5 Years and 75,000 km
Premium segment (Tesla Model 3/Y, BMW iX1, Mercedes EQA): Residual values are 45 to 55% of new price, comparable to premium combustion cars. Compact class (VW ID.3, Hyundai Ioniq 5, MG4): Residual values of 40 to 48%, slightly below comparable combustion cars. Small cars (Renault Zoe, Fiat 500e, Opel Corsa-e): Residual values of 35 to 45%, with the widest variation here.
Factors That Influence Residual Value
Battery degradation is the most important EV-specific factor. Modern batteries typically lose 5 to 10% of their capacity after 5 years. Vehicles with demonstrably good battery health achieve higher used prices. The charging infrastructure in the region influences demand. In areas with good charging infrastructure, residual values are higher.
Combustion Cars: Residual Value Under Pressure
Interestingly, combustion car residual values are increasingly under pressure. The EU combustion engine ban from 2035 and rising CO2 costs burden long-term resale values. Diesel vehicles in particular suffer from driving bans and image loss. For a realistic TCO comparison, you should therefore also use more conservative residual values for the combustion car.
Strategies for Residual Value Optimization
Those who want to minimize depreciation should choose popular brands and models (Tesla, VW, BMW achieve higher residual values). Light or neutral colors are preferred for resale. Preserve battery health through gentle charging: do not constantly charge to 100% and reduce fast charging. Alternatively, leasing offers a way to completely transfer the residual value risk to the manufacturer.
Conclusion: No Reason to Panic
EV depreciation is no longer a dealbreaker. In 2026, it is at a level approaching that of combustion cars. For TCO calculations, we recommend: calculate the EV with 40 to 50% residual value after 5 years, combustion cars with 45 to 55%. The trend speaks in favor of EVs long-term, as rising demand in the used car market supports prices.