The average vehicle coming off a three-year lease has lost 52 percent of its value, but a Model 3 only loses about 10 percent, one study finds.
On average, your average new sedan depreciates 39 percent in its first three years. Trucks go down 34 percent. But electric vehicles drop an astonishing 52 percent, according to iSeeCars, which evaluated values of cars coming off lease.
The outlier is the Tesla Model 3—both compared to other EVs and the market as a whole—which iSeeCars estimates is worth only 10 percent less coming off lease after three years than when it was new.
Tesla’s technological advantages—real and perceived—are a big reason the 3 keeps so much of its value. They help keep the Model S and X above average as well.
For people who buy new vehicles, expected depreciation can be an important factor in trying to estimate what their shiny new object will be worth in a few years. The U.S. used-car market in recent years has seen electric vehicles suffer from particularly high depreciation rates, but there’s at least one EV that’s done playing by the rules.