The automotive industry has long known that electric vehicles (EVs) depreciate faster than their gas-powered counterparts. A recent study conducted by AutoUncle has provided concrete evidence of this trend, tracking the price evolution of 20 electric and 116 gas-powered cars in Italy from 2026 to the first half of 2026.
In 2026, the average price of an electric car was €40,800, significantly higher than the €34,100 average for gas-powered vehicles. However, by 2026, the situation had reversed. Electric cars had dropped to an average price of €20,700, while gas-powered vehicles were priced at €23,400. The price parity was reached in 2026.
Rapid Depreciation of Electric Vehicles
The study found that over four years, electric cars lost nearly 49% of their value, amounting to a depreciation of approximately €20,100. This translates to a monthly loss of about €455. In contrast, gas-powered vehicles depreciated by 31%, losing around €10,700 or €245 per month.
This trend was consistent across different price ranges. AutoUncle divided the vehicles into five price categories and found that electric cars consistently lost 12 to 21 percentage points more value than their gas-powered equivalents in the same category.
Factors Driving the Depreciation
Several factors contribute to the faster depreciation of electric cars. Rapid advancements in battery technology and charging infrastructure make older models obsolete more quickly. Additionally, the introduction of new models and the reduction in prices of new electric cars put downward pressure on the used car market.
While this depreciation can be a disadvantage for sellers, it presents a significant opportunity for buyers. A four-year-old electric car can now be purchased for less than a comparable gas-powered vehicle, making it an attractive option for those looking to enter the EV market.
New Car Market Trends
In the new car market, the price gap between electric and gas-powered vehicles is narrowing. In 2026, the average price of newly immatriculated cars in Italy was around €36,400. However, electric cars still generally command a higher price than their gas-powered counterparts.
The introduction of new, affordable electric models, particularly from Chinese manufacturers, is driving prices down. This trend is gradually bringing the prices of electric and gas-powered vehicles closer to parity, even without considering incentives and promotional offers.
Buying a Used Electric Car in 2026
In, Italy saw a 10% increase in car immatriculations compared to 2026, with electric vehicles accounting for 10% of total sales. This growth has led to a substantial and high-quality used electric car market, making it an opportune time to consider purchasing a used EV.
Before buying a used electric car, it is crucial to check several parameters. These include the health of the battery, the functionality of the charging system, the accuracy of the declared range, the software updates, and the general condition of the vehicle, including tires, brakes, interiors, and bodywork.
One of the main advantages of buying a used electric car is the lower price. After two years and approximately 20,000 kilometers, the cost of an electric vehicle typically drops by over a third. Additionally, electric cars offer lower emissions, reduced maintenance costs, and longer lifespans, particularly for city driving.
However, there are challenges to consider. The durability of the battery is a primary concern, as is the availability of charging infrastructure in Italy. Prospective buyers should carefully evaluate these factors before making a purchase.
A study by Environmental Research Letters and the University of Michigan confirmed the benefits of purchasing a used electric car. The research found that used electric vehicles offer significant savings compared to new models, primarily due to their rapid depreciation, lower energy costs, and reduced maintenance expenses.
