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Hybrid cars held their value the most in 2024, dropping just 1.7 per cent in 12 months, with EVs depreciating the most at 25 per cent.
Electric Cars
Electric vehicles (EVs) have been found to shed 25 per cent of value in 12 months, depreciating more than twice as fast as petrol-powered passenger vehicles and SUVs.
According to the report, a one-year-old EV can lose a quarter of its original recommended retail value, compared to an 11.5 per cent drop for petrol models.
Diesel-equipped vehicles, excluding light commercials such as utes and vans, were found to depreciate just five per cent in 12 months, while hybrids fared the best dropping just 1.7 per cent of their original price over the same timeframe.
The AADA attributes the steep depreciation of EVs to “aggressive OEM discounting”, with last year seeing substantial price cuts applied to major-brand EVs.
Australia’s best-selling EV, the Tesla Model Y, also saw a substantial price cut last year, dropping to $55,900 from $65,400.
Other brands that also slashed EV prices in 2023 include Peugeot, Jeep, Nissan, Polestar, GWM, and Ford.
The used-car data reflects this, as the two most popular used EVs sold in 2024 were the Tesla Model 3 (3341 sales) and MG4 (2694).
These brands include Zeekr, Smart, Geely, Chery, Leapmotor, Deepal, XPeng, and Skywell – most aggressively positioning their models below rivals from Toyota, Hyundai, Kia, and Ford.
Major brands also expanded their EV line-ups, or introduced them for the first time, in 2024, with the likes of the Toyota bZ4X, new-generation Porsche Macan, and Hyundai Ioniq 5 N all launching in 2024.
Finally, the pace of EV technology advancements have also played a part, said the AADA, with new models equipped with improved battery chemistry for increased driving ranges, better cooling for faster charging, and new features such as vehicle-to-load (V2L) and vehicle-to-grid (V2G) capabilities.
However, it remains to be seen if these will be ongoing factors affecting used EV prices.
Electric Cars Guide
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
