There has been ongoing discussion about the resale value of electric vehicles (EVs) compared to internal combustion engine (ICE) cars. A closer look reveals that as EV adoption grows and uncertainty lingers among consumers about making the switch—coupled with limited and falling production of internal Combustion engine (ICE) cars—these market fluctuations are a natural response to supply and demand dynamics.
Meanwhile, in certain cases as referenced new ICE vehicles are experiencing similar depreciation trends, with values dropping by nearly 50% within just three years—comparable to what is observed in the EV market.
What this highlights is that vehicle depreciation is not exclusive to electric cars.
Therefore, concerns about resale value should not deter those looking to enjoy the significant benefits of EVs, including 78–80% savings on fuel costs and up to 45% reduction in maintenance expenses.
Jeremy Rifkin, the author of ‘Zero Marginal Cost Society’ predicted this in his book as bound to happen, the cost of production is bound to drop so low as we enter into the third industrial revolution. It means that the key 3 technologies will be democratized, many will have access at a lower cost. That is;
- Cheaper Transport – Electric Cars
- Cheaper Communication – internet and calls
- Cheaper Energy – Renewable Energy, solar wind etc which in turn will be uaed to power the transporation.
All these would bring the cost of production to its knees.
By David Kwame Gonza
Founder, Hybrid Motors Africa
Contact: +233 (0)551146946
Email: cars@hybridmotorsafrica.com
Website: www.hybridmotorsafrica.com
CALL US NOW FOR YOUR AFFORDABLE ELECTRIC VEHICLE IN GHANA, WEST AFRICA, UGANDA AND EAST AFRICA
Reference;
- https://www.torquenews.com/1084/i-paid-36k-my-2019-toyota-rav4-2022-now-two-years-later-dealer-says-its-only-worth-19k-whats
- Zero Marginal Cost Society (Jeremy Rifkin)