EV Depreciation Calculator
How fast do EVs lose value in New Zealand? Our depreciation calculator estimates what your EV or car will be worth in years to come, with honest New Zealand resale data estimates.
Updated 3 June 2026
Summary
- Depreciation, the value your car loses over time, is usually the single biggest cost of owning one, bigger than fuel, charging, financing or road user charges.
- Our calculator estimates what an EV or car bought new could be worth in years to come, so you can see the real hit before you buy.
- This is a consumer tool, not a tax schedule. If you want IRD diminishing-value depreciation rates for a business asset, this is not that.
- This answers the question a normal person actually asks - what will my car be worth when I come to sell it? We know this is a common question, as our car valuation tool is a popular MoneyHub resource.
- Important: This is an estimate for comparison, not a valuation. Real resale value depends on the model, mileage, condition, battery health and the market on the day.
EV Depreciation Calculator
Worth after 5 years
Total value lost
Biggest drop, the first year alone
Average loss a year
The Bottom Line
Know This
EVs have depreciated faster than petrol cars in New Zealand recently. The end of the Clean Car Discount and the arrival of road user charges pushed some new EVs down 40 to 50% in their first year, against 30 to 35% for a typical petrol car. It varies hugely by model, though: a strong holder like a Tesla keeps far more than a less sought-after model. Buying a 2 to 3 year old EV lets someone else absorb the steepest drop.
Our View
Depreciation is usually the single biggest cost of owning a car, larger than fuel, charging or RUC. For EVs especially, the smart money is often a 2 to 3 year old example that has already taken the hit, or buying new only if you will keep it long enough to outrun the early drop. Check resale demand for the exact model before you buy, because the gap between the best and worst is enormous.
An estimate to help you compare, not a valuation. Real resale value depends on the model, mileage, condition, battery health and the market on the day. Average NZ travel is 12,000 to 15,000km a year; high mileage lowers resale. The depreciation rates behind this tool are drawn from published New Zealand and international resale data, listed under "Data sources" in the guide below.
Do EVs Depreciate Faster than a Non-EV?
In most cases, yes. The end of the Clean Car Discount and the arrival of road user charges knocked EV resale values, and a flood of cheap new EVs (and price cuts from the likes of Tesla) pulled used values down with them. Historically, before the March 2026 Iran issues, some new EVs had lost 40 to 50% in their first year, against 30 to 35% for a typical petrol car per our research, as prices were discounted per this Reddit post.
But the gap between models is enormous. A sought-after EV like a Tesla Model 3 or Model Y has held around 60% of its value at three years, according to data we reviewed, in the same league as a strong petrol car. A less popular model can lose far more. So the brand and demand for the specific model matter more than whether it is electric. Our guide to cars that hold their value explains this reality in detail.
Some further insights:
But the gap between models is enormous. A sought-after EV like a Tesla Model 3 or Model Y has held around 60% of its value at three years, according to data we reviewed, in the same league as a strong petrol car. A less popular model can lose far more. So the brand and demand for the specific model matter more than whether it is electric. Our guide to cars that hold their value explains this reality in detail.
Some further insights:
- Two things make EV depreciation look worse in dollars than it really is. Firstly, EVs often start at a higher price, so even the same percentage loss is more money. Secondly, early EVs had short ranges, while newer long-range models are holding up better as the used market matures.
- Because most of the loss happens in the first two to three years, the steep early drop that hurts a new-car buyer is exactly what makes a used EV a good value. Someone else has absorbed the worst of it - for example, the battery still has years of warranty, and you get most of the range and features at a fraction of the price.
- A second-generation Nissan Leaf with the bigger battery, or a three-year-old mainstream EV, often makes far more financial sense than buying new.
- If you do buy new, a popular approach is to consider keeping it long enough to outrun the early drop, and choose a model with proven resale demand.
What Affects EV Resale Value Most?
Generally:
- Model and brand demand: Reliable, sought-after models (and in NZ, utes and popular small cars) hold value best. Luxury and niche models tend to fall hardest.
- Mileage: The New Zealand sweet spot is around 12,000-15,000km per year. High mileage drops value faster.
- Battery health (EVs): Verifiable battery health protects resale - most EVs carry an 8-year battery warranty, which reassures buyers.
- Condition and service history: Tidy, well-documented cars sell for more. Our guide to selling a car has further tips.
- The market on the day: Incentives, fuel prices and new-model launches all move used values.
How We Set These Calculator Rates, and Where the Numbers Came From
The depreciation rates in this calculator are estimates blended from published New Zealand and international resale data, not figures MoneyHub generates itself. Here is what we drew on, so you can check the sources yourself:
From these, we set four simple profiles - a heavier first-year drop followed by a steadier annual decline. They are deliberately broad, because resale value varies enormously by model, mileage, condition and the market on the day.
Assumptions and sources
- carVertical (NZ) put the New Zealand picture plainly - petrol cars typically lose around 30-35% of their value in their first year. In comparison, some EVs have recently dropped by 40 to 50% following the end of the Clean Car Discount in 2023 and the introduction of road user charges shortly after.
- Driven Car Guide (NZ) reported NZ EV trade-in values, with first-year EV losses at around 40% and a flooded used market pulling private-sale prices lower still.
- Carvira (international) found that EVs have tended to lose roughly 60 to 70% of their value over five years, compared with about 55 to 65% for comparable petrol cars, with the gap narrowing as the used market matures.
From these, we set four simple profiles - a heavier first-year drop followed by a steadier annual decline. They are deliberately broad, because resale value varies enormously by model, mileage, condition and the market on the day.
Assumptions and sources
- The calculator uses a typical depreciation curve with a steeper first-year drop, followed by a steadier annual decline, determined by the vehicle profile you choose. It is an estimate, not a model-specific valuation.
- "Electric vehicle (typical)" reflects the faster depreciation seen in New Zealand recently; "holds value (e.g. Tesla)" reflects stronger performers; the petrol and strong-holder profiles cover conventional cars.
- Figures exclude on-road costs and assume average use. Real value depends on the specific car and market.
Frequently Asked Questions
How much does an EV depreciate in New Zealand?
Recently, faster than petrol cars, with some new EVs losing 40 to 50% in the first year against 30 to 35% for a typical petrol car given the market moving around after government policy changes. It varies widely by model, so use the calculator with the profile that best fits the car you are looking at.
Do all EVs lose value quickly?
No - Strong performers like a Tesla Model 3 or Model Y have held around 60% of their value at three years, while less popular models have fallen further. Demand for the specific model matters more than whether it is electric.
Is it better to buy a used EV?
Often, yes, because the steepest loss is in the first two to three years, a used EV lets someone else take that hit while you still get most of the range, features and remaining battery warranty.
Why do EVs depreciate faster?
Rapid technology improvement makes older models less desirable, government incentives have shifted, new-model price cuts drag used values down, and some buyers still worry about battery life. These pressures are easing as the used market matures.
Does depreciation make an EV more expensive than a petrol car overall?
It can offset the lower running costs. EVs are cheaper to fuel but have lost more value recently, so always weigh both together. Our EV Transition Calculator covers the running-cost side.
Related Resources
TBC
Reminder: This is a guide only, not financial advice. Depreciation estimates are indicative and subject to market changes. Always check the actual resale demand for the specific model before you buy. Our car valuations guide has further details.
TBC
Reminder: This is a guide only, not financial advice. Depreciation estimates are indicative and subject to market changes. Always check the actual resale demand for the specific model before you buy. Our car valuations guide has further details.
