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In a recent shift in the automotive market, electric vehicles (EVs), particularly those from Tesla, have seen the largest drops in resale values. This trend was most notably observed in the United States, where Tesla's significant market share contributes to these observed declines.
According to market data from April 2025, the Tesla Model S experienced a 15.8% depreciation, losing approximately $8,800 in value over the past 12 months. The Model X SUV saw an even steeper decline, losing $9,500 in value, or 15.5%, during the same period. The Model Y, which was partially affected by a refreshed model introduction in spring 2025, depreciated by 13.6%.
Other luxury EVs, such as the Porsche Taycan, Maserati Levante, and Lincoln Aviator, also showed significant losses in resale value. This trend is not exclusive to the US market, as the wider EV market shows a mixed picture, with electric passenger cars retaining value well but electric crossovers struggling with resale.
In contrast, conventional SUVs and trucks have shown more resilience in resale values. Canada's market, for example, has demonstrated resilient residual values among SUVs and trucks, with strong brand performance, such as Toyota. However, overall, there is a mild slump in average residual values for 2025 compared to prior years.
In Europe, plug-in hybrids (PHEVs) have struggled, with drops of 7.5 percentage points (pp) in Italy, 4pp in the UK, and 0.8pp in Spain compared to 12 months ago. Despite this, petrol cars led the market in April, retaining an average of 49.2% of their original list price value, followed by hybrid electric vehicles (HEVs) at 49.4% and diesel cars at 48.6%.
In terms of resale speed, plug-in hybrids and electric vehicles were among the fastest-selling cars, with PHEV models selling in an average of 60.3 days, followed closely by diesel cars at 60.6 days.
It is important to note that the average number of days needed to sell a used car in April increased to 64.4 days. Additionally, the average residual value (RV) of 36-month-old cars at 60,000km in Austria, Germany, Italy, Spain, Switzerland, and the UK decreased year-on-year. The UK suffered its lowest RV performance since August 2024, with an average trade value of 50.7%, while Austria saw its lowest RV since December 2024, at 47.7%.
In Italy, electric vehicles experienced the steepest year-on-year RV decline, dropping 4.6 percentage points (pp) to 48.4%. Germany saw a 2.6pp year-on-year decline in RVs, while Switzerland slumped 4pp year on year to 43.7% in average trade values.
Despite these declines, it is worth noting that battery-electric vehicles (BEVs) showed roughly average performances compared to other powertrains in the six markets assessed. In terms of days needed to sell, BEVs took 61.6 days, followed by petrol cars after 67.9 days and HEVs after 72.2 days.
In summary, electric powertrains, particularly Tesla's EV lineup, have experienced the biggest residual value drops at 36 months and 60,000 km in early to mid-2025, particularly in the US market. Conventional SUVs and trucks remain more resilient in residuals, with Canada showing less dramatic value losses in those segments.
Given the stated decline in resale values of electric vehicles, particularly those from Tesla, individuals might want to reconsider their financial decisions when purchasing these vehicles, as they may not retain their value as well as conventional vehicles like SUVs and trucks. Additionally, understanding the resale values of various powertrains, such as battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), petrol cars, and hybrid electric vehicles (HEVs), can help minimize financial risk and make informed financial decisions when purchasing a new vehicle.
