Electric vehicles lose more than just charge. They also lose value – at a rate that dovetails with their loss of charge and the time it takes – and so, wastes – to recharge them.
Not even Lexus is immune from this hemorrhaging of value. The brand’s name is italicized because of all brands, Lexus has for decades enjoyed the lowest depreciation rate of any brand. More finely, people who own Lexus vehicles have not bled money as quickly – in the form of less-rapidly depleting worth of their vehicles. Lexus models are as “blue chip” as it gets when it comes to vehicles, which inevitably lose value as they age and the miles accrue.
But Lexus-badged vehicles lose it less fast.
The popular Lexus RX350, for instance, tops the list of value-holding luxury-badged vehicles. The RX, which dates back to 1998, is known to be of value because these crossovers commonly run reliably for 20 years or even longer than that.
Lexus devices, on the other hand . . . .
The RZ, for instance. This device is projected to be worth less than half – 45 percent – of its original MSRP value (if you want to use that word) of $42,800 after five years. That means if you bought one of these devices today, by 2030, you can look forward to it being worth about $20,000. Looked at another way, owning this device for five years will cost you about $4,000 each year in shedding value, which works out to about about $330 per month over five years. There was a time – it was not all that long ago – when that sum paid out over a five year stretch would purchase you a car.
Now it loses you the equivalent of one.
The Lexus device is not by any stretch unique in this respect. Devices in general depreciate about 30 percent faster than the average vehicle. This creates yet another incentive to not buy a device that is a function of the chief reason most people do not want a device, which is the time wastage involved. Apologists for devices are delusional in this respect. They will say things like: I don’t have to wait for my device to charge; it charges overnight while I sleep! This being like the finding something else to do while you wait for the plumber who says he’ll be there sometime between noon and five that afternoon. The point being that while you may be doing something else – including sleeping – you are nonetheless still waiting.
If you are waiting overnight for your device to charge up, you will have an additional problem if an unanticipated need to drive comes up in the middle of the night, such as an emergency need to get somewhere else quickly. The odds of this occurring are admittedly slight but they are not nonexistent. They are nonexistent when you have a vehicle in the garage that has a tankful of gas. It is ready to go at any time, no wait – and no having to plan around it.
There is value in that.
Even the 15-20 minute – at commercial charging stations – that is touted as “fast” by EV apologists is preposterous in that there is almost no one who would put up with a wait that long at a fast-food drive-thru as a for-instance. Most people have a time budget. They don’t have to waste, in other words – when they could be doing something else, such as getting to where they need to be as opposed to waiting to get going.
There are other – related – factors that account for the double-digits more rapid depreciation of devices. The big one being related to the use of those so-called “fast” chargers, which have the ironic effect of shortening the service life of a device’s battery pack. Anyone who has ever dealt with batteries knows about this already. Slow-charging is easier on the battery while subjecting a battery to fast-charging isn’t. Once again, the time cost. You can either wait longer – and extend the service life of the battery. Or you can wait a bit less – at the cost of having to buy a new battery sooner.
Of course, a device that is say five years old is suspect for just this reason. Potential buyers – if they are not fools – know that a five-year-old battery may not have five more years of useful life left and the worst part is there’s really no way to tell. Not until it’s already too late.
Then you’re the one who is left holding the bag.
The final factor – as regards the startling depreciation of the Lexus device (and for that matter, Mercedes devices and other devices sold by luxury brands) is that at the end of the day they are just devices. A Lexus V8 – or any other engine – is a finely engineered machine. A battery pack is a battery pack – and probably sourced from the same factory in Chyna. Why pay extra for a device with a “Lexus” or “Mercedes” badge?
Why, indeed.
. . .
If you like what you’ve found here please consider supporting EPautos.
We have a couple EV chargers at the shop. The Level 1 are basically worthless. Almost the same as plugging it into a standard wall outlet. Level 2 is typically about 2-3 hours. I understand Level 3 does exist but I’ve never seen one. Apparently some of the public charging stations in the city are having issues with the local shi*bags cutting the cables off of them. Neat.
Hi Cheddar,
I have one on deck about this subject; stay tuned!
Now I don’t sweat depreciation too much because I drive my cars until they fall apart. What I do sweat very much is that you can’t drive an EV until it falls apart.
You see, the batteries in EVs degrade rather quickly; in fact, by 10 years and 100,000 miles, they’re pretty much done for. They degrade even faster when temperatures fall below 55 degrees and rise above 72 degrees, not to mention when they’re fast charged. On top of that, the batteries cost more than the value of the car itself—that is, if batteries are still available for your EV.
You also can’t drive an EV for a long time because of all the software that they use. After 10 years, your EV may not be able to handle another software upgrade without bricking, or your vehicle’s software may no longer be supported.
And then there’s the issue of your EV randomly going into auto-da-fe mode…
Morning, Bryce!
I think the subtle – and serious – problem with EVs is that they are only plausibly practical if regularly “fast” charged, because otherwise you will be spending many hours each week waiting for the thing to charge up. But if you make regular use of commercial “fast” chargers, it will accelerate the degradation of the battery.
Catch meet 22.
EVs are for people who want their cars to keep them on a leash.
I’d say the numbers you quote are still rather optimistic, Eric.
Much of the most recent data on used EV prices in Europe, for example, shows depreciation of 40-50% within 2-3 years.
Which puts the total cost of ownership – something EV owners used to boast about just how ‘cheap’ it was, because ‘solar panels’ and ‘charging at low night tariff at home’ – way, way above a comparable ICE vehicle.
And given the number of used EVs is only increasing, this situation is about to get worse, still.
But then again, Elon said your Tesla would APPRECIATE in value, because it could serve as a fully autonomous robo-taxi while you were at work!
He wouldn’t lie, surely!
Until EV’s are just as reliable as gas guzzlers, and can handle the long, dark, cold Winters in these parts, those making them can keep them! Also, who wants to fork over how many thousands for a battery? No thanks. And yeah, Burn is right: These EV’s and other truly are butt ugly. There are a few in these parts, not many, but they are unmistakable when you see them. Also, if we are going to go futuristic, I want a George Jettson car that floats above the road, not these hunks of junk that they are trying to foist up on the rest of us.
As Arnold says in Predator “You are (that is) one ugly MFer.
Another dose of stupid:
https://www.presstv.ir/Detail/2025/05/31/748966/Chile-US-diplomatic-near-breakdown-amid-Israel-s-genocidal-war-in-Gaza
>The punitive measures include canceling Chile’s participation in the US Visa Waiver Program, increasing tariffs on Chilean exports, suspending student visa interviews, and even closing the US consulate in Santiago.
https://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/copper-production-country/
>In 2024, Chile produced 5.3 million metric tons of copper, making it the world’s largest copper producing country with about 23 percent of the total global copper output.
Great, let’s drive up the price of copper whilst we decree an “all electric” future for the U.S.
—
I live in north Florida part of the year and I was imagining wide device adoption by the dummy blues in Tampa or Miami and then experience a hurricane evacuation order.
In theory a fully charged device might make it to Dayton, but probably most would fail north of Palm Beach.
But image 100,000 EVs all hitting Daytona Beach or Melbourne (best case) all needing a charge. There won’t be a single one making it to St Augustine.
If I had to leave my TDi would get me to St Louis!
Daytona not Dayton!!
Go back a few years, and the potentential device owners would spout misguided Internet-inspired plans to game the warranty plans of the manufacturers to get at least one “free” battery replacement before trading the vehicle at a normal 10-12 year cycle.
Strictly anecdotal evidence, but I heard it repeatedly before everything shut down in the pandemic.
For starters; does the front end of that Lexus remind you of a snow shovel with built in lights? It does to me and it’s one ugly looking front end.
Perhaps the main reason the Auto companies are embracing the EV tar baby is that cars became too reliable. If you live in a state that does not salt the roads in winter your car could last for decades if you maintained it well. EV’s on the other hand will not last for decades without needing several expensive new battery packs that may not even be available in 10 years. When that happens you buy a new one and the auto companies made another sale. At least on a Baker you can put in 6 volt golf cart batteries as those Edison batteries are hard to find now.
Ugly is the new automotive aesthetic.
How else do you explain a Cybertruck. How do you explain any of the SUV’s & CUV’s that all have the same basic shape as a turd.
What passes for “design” now has a distinct Soviet aesthetic.
https://tinyurl.com/25h9jaxz
How else do you explain the popularity of Crocs?
Not long before I moved away from Atlanta, I observed a black man wearing yellow crocs. He looked like Daffy Duck.
Another look I cannot stand is the styling of devices. They are trying to make them look futuristic but to me look worse than the Ford Taurus when it was new. The Taurus was futuristic looking enough to have been in a futuristic movie called Robo Cop. I cannot imagine any device in a futuristic movie except maybe the cyber truck, even then, the cyber truck should be something driven where there is no other form of life.
A buddy at work crowed about his new Taurus, he was always a first adopter. Asked him if he got that free Ford car cover. “? Sparkey, what deal is that?” “Well, Ford felt so bad about selling those UGLY as F cars, you’re due a free cover!” Eh eh eh.
Yes, for long life. My “driver” this week is the 1991 Silverado 350 V8 truck. Kids took the 2018 Jeep to California, best bet than either of the Land Rovers or the 09 Acura with the dead AC. Ornimental AC not the most reliable. Second failure in the Acura while the truck soldiers on 10 year old 134a conversion. Even better the 03 Escape, AC never failed.