Tesla Model Y Has Highest Residual Value among EVs, Study Shows

Tesla Model Y has the highest residual value among EVs, a German study shows. In four years of ownership, the car retains 64% of its original value, which is the best among all models.

Residual value is an important indicator

All cars on the market have a lot of differences. This is very important as consumers can find a vehicle that is ideally suited to their needs and budget. However, whichever vehicle is chosen for purchase, one of its most important indicators is the residual value. This value pertains to the future cash value of a car after some period of use.

A German company researched the residual value of cars

Since 2010, the German company Focus Online, in cooperation with Bähr & Fess Forecasts, has been preparing vehicle residual value forecasts over a period of four years. This forecast was made using current data from as recent as June 2023. The online portal, along with experts, presented rough estimates of how much certain car models would be worth in four years.

According to Focus, the average first year depreciation of new passenger cars of all classes, at a mileage of 15,000 kilometers per year, is 24.2 percent. In subsequent years, the value declines by only about 5-6 percent. However, there is a big difference between individual brands and models. In studies and calculations, winners are determined in two categories: the best in the area of relative residual value (in percentage) and the best in the area of absolute residual value (in euros).

Tesla Model Y has the best residual value

The winners in euros (absolute residual value) are the new vehicles that lose the least in just four years, converted into euros and cents. However, the absolute residual value indicates what percentage of the original retail price will still be available in 2027. By percentage, the winners are those models that have retained the highest percentage of their original value over four years.

According to the data received for June 2023, the basic version of the Tesla Model Y RWD took first place. The calculation showed that the car had a projected residual value of 64 percent four years after purchase. Tesla Model Y is the vehicle with the most stable cost. By June 2027, the car is predicted to lose only 17,020 euros compared to the price in Germany as of June this year (47,568 euros). No other car can offer this.

Vehicles that compete with Model Y

Tesla Model Y was the leader in the study. In second place is the Exotic Fisker Ocean. The vehicle has a projected residual value of 59.5% after four years. The researchers note that this is mainly due to car being offered at an especially competitive price in the basic version. Mercedes EQS, meanwhile, in four years can be sold for half the purchase price.

Focus did not provide averages for the EV segment as a whole. However, it indicates that the expected residual value for many cars is sometimes disappointingly low. The Smart EQ Fortwo is mentioned as an example, which in four years can be sold for just 38 percent of its sales price.