Question 1

How much does an EV depreciate in Australia?

Accepted Answer

The average new EV in Australia loses roughly 50-55% of its value over five years, with the steepest drop in the first year (around 15-20%). Australian EV depreciation has historically run a little higher than the equivalent petrol car because of rapid model refreshes, falling new-EV prices (notably Tesla in 2023-2025) and limited second-hand demand, though residuals on popular models like the BYD Atto 3 and Tesla Model Y have stabilised as the market matures.

Question 2

Which EVs hold their value best in Australia?

Accepted Answer

As of 2026 the strongest five-year residuals belong to the Tesla Model Y (around 55% retained), Tesla Model 3 (50-52%), BYD Seal (48-50%) and BYD Atto 3 (45-48%). The heaviest losers are short-range first-generation EVs such as the Nissan Leaf (25-30% retained at five years) and entry-level small-battery city EVs. Range, brand confidence and a mature local dealer network are the biggest drivers of resale value.

Question 3

Do EVs depreciate faster than petrol cars?

Accepted Answer

On average, yes — by about 5-10 percentage points over five years in Australia. The gap is narrowing as battery durability proves better than feared and the second-hand EV market grows. The biggest exceptions are premium European petrol cars, which often depreciate harder than a mainstream EV. Use this calculator to compare a specific EV against the petrol alternative you are cross-shopping.

Question 4

How is EV depreciation calculated?

Accepted Answer

Depreciation is the difference between the purchase price and the residual (resale) value at a future date. This calculator applies a per-model, year-by-year residual curve drawn from Australian used-listing data: year 1 is the steepest, then the curve flattens. The chart shows residual value each year and the cumulative value lost, so you can see exactly when the steepest losses occur.

Question 5

Does the EV battery degrade and lower resale value?

Accepted Answer

Yes, but less than most owners fear. Modern LFP and nickel-manganese batteries typically retain 85-90% of capacity at five years under normal Australian driving. Battery health does affect price — a verified state-of-health report can lift resale value. Long warranties (BYD and MG offer 7-10 years on the battery) transfer to the next owner and protect resale.

Year	Resale value	Value lost that year	Cumulative lost
End of year 1	$40,320	$7,680	$7,680
End of year 2	$35,040	$5,280	$12,960
End of year 3	$30,720	$4,320	$17,280
End of year 4	$27,840	$2,880	$20,160
End of year 5	$26,400	$1,440	$21,600

EV Depreciation Calculator Australia 2026

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