1-Year-Old EVs that Are Significantly Affordable Than New Models

Explore these Electric Vehicles with the Highest First-Year Depreciation for Substantial Savings on Pre-Owned Models.

If you’re aiming to economize on the purchase of an electric vehicle (EV), considering a slightly used model—a year old, as defined by iSeeCars—could be a smarter choice than purchasing a brand-new one. This strategy is particularly beneficial because EVs experience significant depreciation, more so than hybrids or vehicles with traditional internal combustion engines (ICE).

The current resale value of EVs is influenced by several factors, including the fast-paced technological advancements in battery and electric powertrain technology, as well as significant price reductions on Tesla models by Elon Musk, which have contributed to a general devaluation of EVs. It’s a well-known fact that vehicles typically experience their most substantial depreciation in the first five years of ownership. Given these factors, opting for a one-year-old model among EVs with the highest rates of first-year depreciation could yield the most considerable savings.

1 Mercedes-Benz EQS

47.8 Percent Depreciation in the First Year (Average Price: $71,231)

Top-tier full-size luxury sedans typically do not retain their value well when resold, and when equipped with an electric powertrain, they can experience even more pronounced depreciation in the first year. The Mercedes-Benz EQS, the flagship model under the EQ series, mirrors this trend, similar to the S-Class. However, unlike the S-Class, the EQS is solely electric, indicating that owning this vehicle comes with significant financial drawbacks.

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Dropping nearly 50% in value within a single year is an unusual occurrence, and a significant factor could be the anticipated release of the 2025 model year EQS. The 2025 model is slated to receive a mid-cycle refresh, although it’s not expected to alter the EQS’s controversial “jellybean” shape, which hasn’t won over many enthusiasts. However, admirers of the EQS will appreciate its smooth operation and comfortable ride, even if the MBUX Hyperscreen dashboard is considered excessive, even for its intended demographic.

Advantages:

Exceptionally luxurious
Remarkably aerodynamic
Impressive range

Disadvantages:

The “jellybean” design has limited appeal
The MBUX Hyperscreen dashboard is overly complex
Unnatural feeling in the brakes

2 Nissan Leaf

45.7 Percent Depreciation Over One Year (Average Price: $18,756)

Why is an affordable electric vehicle like the Nissan Leaf featured on this list? Typically, budget-friendly cars don’t experience such a sharp decline in value in their first year, but the Leaf breaks the mold. Why is that the case? Although the Nissan Leaf is one of the most cost-effective new electric vehicles (EVs) on the market, it doesn’t qualify for the $7,500 federal tax credit because it’s manufactured in Japan. As a result, the Chevrolet Bolt and its EUV variant are the most affordable new EVs that buyers can actually purchase. So, what would motivate someone to choose the Leaf, which lags behind in range and is more costly than the Bolt models?

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Additionally, the Leaf encounters a distinctive issue related to this electric vehicle—its charging port. The Leaf is the only EV available in 2024 that still uses the outdated ChaDeMo DC charging standard, which is becoming increasingly rare at charging stations in the country. The Mitsubishi Outlander PHEV is the only other vehicle that retains the ChaDeMo port. Thus, it’s advisable to steer clear of purchasing the Leaf brand new, or even better, to avoid it altogether, given that the Bolt models present superior alternatives.

Advantages:

Budget-friendly pricing
Spacious for its size
Versatile design

Disadvantages:

Adequate, but not exceptional, range
The ChaDeMo charging port is becoming obsolete
The vehicle feels generally outdated

3 Kia EV6

33.3 Percent Depreciation in One Year (Average Price: $36,243)

One might wonder, isn’t the Kia EV6 a celebrated and well-regarded electric vehicle, similar to its Hyundai counterpart, the Ioniq 5? Indeed, it is acclaimed, but that doesn’t spare it from the significant first-year depreciation that many EVs are experiencing. The situation is exacerbated by the fact that the Tesla Model Y, its main competitor, has seen substantial price reductions in the past year. Additionally, as the EV6 is manufactured in South Korea, it doesn’t qualify for the $7,500 federal tax credit.

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The EV6 should not be considered a subpar electric vehicle. Although its initial cost may not be advantageous, the value it retains after a year likely is. With a modern and sporty appearance, the EV6’s design features a sharply inclined front, an energetic outline, and a variety of color options, which somewhat merge the characteristics of a hatchback, crossover, and wagon. The EV6’s E-GMP platform, which incorporates an 800-volt system that facilitates DC fast charging up to 350 kW and bidirectional charging, further enhances its appeal, allowing the EV6 to function as an external power source.

Advantages:

Smooth and eye-catching design
Clever 800-volt electrical system
Leading fast-charging speeds in its class

Disadvantages:

Standard Range versions are less competitive
Smaller cargo space compared to competitors
The stylish design slightly reduces visibility

4 Hyundai Ioniq 5

32.9 Percent Depreciation Over One Year (Average Price: $34,303)

Given that the Kia EV6 is on this list, it’s no shock that the Ioniq 5 shares a similar depreciation trajectory. The Ioniq 5 faces the challenge of intense pricing competition from Tesla and, like the EV6, is manufactured in South Korea, resulting in a higher cost than the Tesla Model Y it’s designed to compete against. However, purchasing the Ioniq 5 after it has aged a year offers significant value and innovative features at a more attractive price point.

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Although the Ioniq 5 and the Kia EV6 are built on the same platform, they each possess distinct characteristics. While the EV6 opts for a more athletic aesthetic, the Ioniq 5 is widely praised for its retrofuturistic design. The vehicle’s interior is well-crafted to resemble the comfort of home, and it benefits from an 800-volt electrical system that supports DC fast charging up to 350 kW and has the capability for bidirectional charging. It’s these elements, combined with its smart interior design and distinctive exterior appearance, that have garnered the Ioniq 5 a considerable following.

Advantages:

Unique retrofuturistic design
Innovative interior layout
Advanced 800-volt electrical system

Disadvantages:

Cargo area is smaller compared to competitors
Requires wires for smartphone integration, which is unexpected
The Standard Range model falls short in competitive range

5 Volkswagen ID.4

32.9 Percent Depreciation in One Year (Average Price: $31,870)

The Volkswagen ID.4 is a straightforward electric crossover. It doesn’t particularly stand out, but it’s not without merit. In terms of design, the ID.4 presents a pleasing, if not particularly bold, appearance, and its focus on comfort and a refined driving experience makes it suitable for families. However, the interior, while visually appealing with its minimalist approach, has been criticized for having a suboptimal infotainment system. It’s recommended to test this feature personally before committing to the purchase of an ID.4.

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The ID.4’s already attractive prices for gently used models become even more appealing, as it qualifies for a $4,000 tax credit for pre-owned electric vehicles (EVs), effectively reducing the average price to $27,000. Additionally, it’s worth considering that a brand-new 2024 ID.4 is eligible for a $7,500 federal tax credit, suggesting that the used ID.4’s value may experience a slight decrease in the future.

Advantages:

Undemanding character
Smooth and sophisticated driving experience
Adaptable interior layout

Disadvantages:

The entry-level model has a limited range
The infotainment system is not well-designed
Some competitors offer more upscale interiors

6 Ford Mustang Mach-E

29.8 Percent Depreciation Over One Year (Average Price: $38,543)

The Ford Mustang Mach-E’s introduction as an electric crossover stirred debate, not so much because of the vehicle’s capabilities, but because of the iconic name it carries. Attaching the Mustang name to any crossover, electric or otherwise, was always going to draw skepticism. Despite this, the Mach-E, beyond its name, is a capable and sporty electric crossover SUV that has made a competitive mark in its segment.

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It’s noteworthy that even the base models of the Mustang Mach-E offer strong range capabilities. Moreover, the Mustang Mach-E qualifies for a $4,000 tax credit for used electric vehicles (EVs), which is a beneficial incentive. However, new Mustang Mach-E models do not qualify for the $7,500 or even the reduced $3,750 tax credit for brand-new EVs that has been in place since January 2024. Therefore, it’s advisable to consider one-year-old Mustang Mach-E models to maximize savings.

Advantages:

Elegant design both inside and out
Enjoyable driving experience
Strong range for the class

Disadvantages:

Doesn’t live up to the ‘Mustang’ moniker
The ride quality at low speeds is somewhat harsh
The interior lacks the premium feel of some competitors

7 Chevrolet Bolt EUV

28.2 Percent Depreciation Over One Year (Average Price: $23,320)

We acknowledge that the Chevrolet Bolt twins have faced setbacks, but that doesn’t diminish the value of a one-year-old model as an affordable option. For those seeking an affordable EV, it’s better to look past the Nissan Leaf and consider the Chevrolet Bolt and Bolt EUV. The Bolt EUV experiences a slightly higher depreciation rate than the standard Bolt, but in the used car market, there’s minimal difference between the two. The Bolt EUV enhances the standard Bolt with a more rugged appearance, although this results in a minor reduction in range.

Despite its small exterior dimensions, the Bolt EUV offers a surprisingly roomy interior. While it may not be luxurious, it is thoughtfully designed and equipped with contemporary technology features, albeit not the most advanced or flashy by today’s standards. The vehicle also boasts a generous amount of space relative to its size and offers a commendable range for its class, even if it falls a bit short compared to the more basic Bolt model.

Advantages:

Among the most budget-friendly EVs in America
Robust styling enhances the appearance of this modest hatchback
Ample interior space

Disadvantages:

Sluggish DC charging rates
The interior lacks a high-end feel
Slight decrease in range compared to the Bolt EV

8 Chevrolet Bolt

28 Percent Depreciation Over One Year (Average Price: $22,229)

Like the Bolt EUV, the Bolt EV experiences significant depreciation. It presents a more straightforward and slightly more cost-effective option compared to the EUV, with one key advantage—range. The standard Bolt’s EPA-estimated range is 12 miles longer than the Bolt EUV, totaling 259 miles, which could be a decisive factor for some buyers. Additionally, the Bolt EV’s simpler design contributes to a marginally quicker acceleration, reaching 60 mph in 6.5 seconds compared to the Bolt EUV’s 7.0 seconds.

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The Bolt’s interior is, not unexpectedly, quite similar to that of the Bolt EUV, offering a functional and surprisingly roomy space given the vehicle’s compact dimensions. If the Bolt were still available for purchase, opting for a new model would be advisable, as it could qualify for a federal tax credit—worth inquiring with dealers to see if they have any remaining inventory. With the $7,500 federal tax credit applied, the Bolt’s final price could be as low as $19,000. However, even considering the $4,000 federal tax credit for used Bolts, the modest price variance suggests that buying new might be the better option.

Advantages: