With the quickly growing popularity of BMW electric vehicles, prospective buyers have a lot of questions about their operation and whether or not they’re worth a purchase. You likely already know about many of the benefits that electric cars offer, such as their environmental friendliness, their low costs of operation and repair, and their increasing range.
Here at BMW of Peabody, our dealers receive many questions about how electric vehicles retain their value.
Depreciation and Electric Cars
All new vehicles undergo a phenomenon known as depreciation, which can be defined as the gradual loss in value of an asset. The most extreme depreciation occurs during the first few years of ownership, when a vehicle can lose up to 25 percent of its value.
Electric vehicles depreciate just as gasoline-powered vehicles do. Though they offer various types of savings in the form of efficiency and fewer and less expensive repairs, electric vehicles typically lose more than $5,700 off their original value per year of ownership, according to Forbes.
If you want to avoid the most depreciation on an electric car, consider a pre-owned BMW model instead of new.
Overall Cost of Ownership
Now that you know electric vehicles retain their value just as well as gasoline powered vehicles, you may be wondering if they are worth the cost. The overall answer is an enthusiastic yes, according to the same Forbes article. Most states, including Massachusetts, have hefty financial and tax incentives for purchasing an EV vehicle, which helps to offset the cost of depreciation.
In fact, Massachusetts has a MOR-EV Rebate Program, which gives a $2,500 rebate toward the purchase of a fuel cell electric vehicle up to $50,000.
