Man Shops Mercedes EV. Then He Sees How Much It Depreciates In Just 2 Years

If you want a car that retains its value and are considering buying a brand-new electric car, you may want to think again. At least that's what one car enthusiast says.

Teddy (@houseofauto) recently posted a video in which he points out that EVs are rapidly losing value.

Teddy begins with a 2022 Audi E-Tron GT Premium Plus with 43,000 miles that’s selling for $37,500. When the car debuted, its MSRP was $102,400. In just a few years, it's depreciated 64%.

Then Teddy points to a 2024 Mercedes-Benz EQE 350+ RWD going for $36,500 with only 14,000 miles on it. Cars.com reports that this model had a suggested MSRP of $78,000 when it first dropped, yet another massive value freefall in just a couple of years.

“It’s only two years old and as you can see it’s original MSRP was almost $90,000, and you can have it today for $36,000,” he says of the 350+ model. “It is a two year old EQE with 14,000 miles. This is borderline brand-new."

Used Gasoline-Powered Vehicles Retain Value

Teddy then highlighted the disparity between the values of used gas-powered vehicles. He showed 2024 Mercedes-Benz E 350 4MATIC with 28,000 miles going for $49,000. Motor1 found other dealers asking as much as $63,000 for the same model.

To further underscore the depreciation discrepancy between EVs and gas-powered vehicles, Teddy points to the Audi R8 which, he says, the E-Tron was marketed to replace. He shows a 2021 R8 Quattro V10 Performance Spyder with AWD priced at roughly quadruple the asking price of the E-Tron.

He says the same goes for Porsche’s own electric speed demon, the Taycan. Teddy found a 2021 Taycan going for $44,000 with under 30,000 miles. Its base model sold for $81,000, per Kelley Blue Book, but now goes for $48,000. And this same level of devaluation occurs with pricier, trim levels. KBB writes that the Turbo S Sedan 4D, which initially commanded a $189,000 price can now be had for around $90,500. Some that go for even much less than that amount. Motor1 found a Turbo S priced at $73,000.

Just like Audi and Mercedes, Teddy noticed that used Porsches with gas-powered engines are also selling for a lot more money. To drive that point home, he says he found a pre-owned 2018 green Panamera 4S with 82,000 miles that’s going for $41,000.

Gallery: 2024 Mercedes-Benz EQE SUV

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Why Are Used EV Prices Dropping So Rapidly?

As Car and Driver points out, a lot of automakers are offering steep discounts on used EVs. Much of this has to do with a federal tax incentive loophole that allowed people leasing electric cars to have rebates directly incorporated into their monthly payments. This allowed EV buyers to have discounts appended immediately to their monthly car notes.

Last September, Experian reported that 58% of all new EVs were leased rather than purchased. Now this is resulting in a staggering amount of previously leased electric cars on dealer lots.

Now that those lease terms are expiring, the market is getting flooded with used EVs. And due to the laws of supply and demand, since supply is up, sellers are getting competitive with pricing to offload inventory.

This is good news if you're in the market for a used EV. But it may mean that you'll take a financial hit if you buy a new one.

Motor1 has reached out to Teddy via Instagram direct message and Mercedes-Benz via email for further information. We'll be sure to update this if he responds.