You hear all kinds of talks about EV resale value.
Some say EVs have no resale value.
Others claim the market is tricky and unpredictable.
The truth is that in Singapore, resale value is deeply connected to COE prices.
This means how much your car is worth after a few years depends a lot on COE.
How Depreciation and COE Price Connect
Say you bought your EV at $160,000 and expect about $16,000 drop in value every year.
Another person bought the same EV but paid $180,000 and expects to lose $18,000 a year.
The current market price and COE is roughly around $100,000.
The person who bought at $160,000 has an advantage.
He can price his car better when selling because the market accepts that price range. But the person who bought at $180,000 almost has to sell at or below market price to find buyers.
Buyers do not want to pay more than the current market price.
Real-life Example of COE Impacting Resale
When COE was low, around $30,000 a few years back, buyers could get cars cheaper.
Now COE is around $100,000 and those cars have a much higher paper value, meaning they can ask higher prices when reselling.
But keep in mind, if COE drops or stays low, resale prices tend to drop too.
Resale price is really a reflection of supply and demand shaped by COE prices in Singapore.
This makes resale value hard to predict sometimes.
Supply and Demand Drive Resale Prices Too
Besides COE, market demand and supply also affect resale prices. If demand is very high or supply is low, resale prices increase even if COE dips.
Dealers and sellers carefully watch these trends and adjust prices.
Understanding this market dynamic helps buyers and sellers strike better deals.
Why People Think EVs Have Lower Resale Than Petrol Cars: Is It True?
Many petrol car owners think EVs lose value faster.
A good way to look at it is comparing iPhone 17 and iPhone 14.
Newer EV models with better tech come out quickly, making older ones feel out-dated faster. IPhone 14 phone value will drop when iPhone 17 comes out.
This also means the quantum of the vehicle will drop too. Those that cannot afford $180,000 with downpayment of $70,000.
Can look at a 5 Year old car, of $90,000, with a lesser downpayment - $36,000.
EVs also depreciate faster because of rapid tech progress and the COE cycles that control car ownership in Singapore.
And because EV market is younger and less mature compared to petrol cars, price fluctuations are bigger.
So yes, EV resale value is generally lower at the moment.
But it is improving fast as more people want EVs and understand their value over time.
Important Tips for EV Owners and Buyers
- Watch COE cycles and market trends before buying or selling your EV.
- Buying at a lower price gives you a better cushion against depreciation.
- Keep your battery and service records up to date to improve resale price.
- Understand that resale is real but it follows COE, supply demand, and battery condition.
Wrapping Up
The EV resale market in Singapore is still fresh and unpredictable but strongly tied to COE and market forces.
Learn about these and you can get smarter buying and selling your EV.