When consumers buy hybrid or electric cars, they typically do so with a greater purpose. Either they wish to help the planet by limiting the burning of fossil fuels and reducing emissions, or they want to save money at the pump. Many would consider themselves early adopters of new technologies, always eager to try the latest tech. But are hybrids and EVs better for your wallet? Considering resale value, are they a risky purchase? We will take a look at how hybrids and electric vehicles perform when it comes to the latest depreciation numbers.
CarEdge has calculated the annual depreciation of popular car models on sale in the United States. This free data available on the CarEdge Research Hub is extremely valuable for car shoppers. With these insights, it’s possible to determine which cars have historically been relatively good investments, and which ones have been underperformers.
Head to the free Research Hub for all of today’s car depreciation numbers.
Let’s Start with the Worst
Let’s start with the bad news for electric vehicle owners: some models are performing poorly in terms of value retention. Topping the list is the Tesla Model X, which retains just 43.15% of its value after five years, meaning it depreciates by 57%. The Tesla Model S follows closely with a 5-year residual value of 43.49%. Similarly, the Nissan LEAF depreciates by more than half, with a 5-year residual value of just 45.56%. These EVs, despite their fuel efficiency, lose significant value over time, outpacing any potential fuel savings.
The Better Performers
On the other end of the spectrum, some hybrids and electrics hold their value exceptionally well. Leading the pack is the Toyota Prius, with a remarkable 5-year residual value of 68.92%, making it one of the best vehicles for resale, hybrid or otherwise. The 2025 Toyota Camry, now exclusively available as a hybrid, also shines with a 5-year residual value of 65.09%. Both models offer exceptional fuel efficiency and long-term financial value, making them solid investments for those who prioritize fuel savings and resale value.
What About Tesla?
No article about hybrids or electric cars would be complete without a commentary on Tesla. With such, we will tell you that the Tesla Model S – the only Tesla qualifying for 5-year results – ranks 75th overall among luxury cars. The Model S, which cost roughly $90,000 when purchased in 2019, is today worth 43% of it’s value as new, being worth about $40,000 in 2024. Losing $50,000 of value is never fun, but that was the cost of being an early-adopter five years ago. Our take is that Tesla deserves credit for producing a fully-electric car, and still having it be worth something meaningful with its technology 5 years old, and after you’ve put some significant miles on it.
The Bottom Line
Our take on whether hybrids and electric cars offer good resale value can be summed up with a classic “it depends.” Some models, like the Toyota Prius and Camry Hybrid, have proven to retain their value remarkably well, making them smart investments when paired with fuel savings. On the other hand, vehicles like the Nissan LEAF and Tesla Model X suffer significant depreciation over time, despite their tech-savvy appeal. The smart car shopper will always do their homework, assess depreciation trends, and choose wisely to maximize value retention over time.
Check our the complete rankings of the cars with the best and worst depreciation, updated for 2025.
