That electric car you may be considering could deliver a shock.
A report by Kelley Blue Book, commissioned by USA Today, found that electric vehicles tend to lose significantly more of their value in the first five years of ownership than conventional gas-powered cars do.
The KBB study more or less corroborates similar research done in England, according to Autoblog.com.
According to the Kelley Blue Book study, a new Chevrolet Spark electric vehicle will only be worth 28 percent of its $28,300 sticker price after five years.
That compares with a 40 percent residual value on the gas-powered Spark after five years.
An electric-powered Ford Focus will be worth 20 percent of its $36,000 sticker price after five years, while the gas-powered version will retain 36 percent of its original price.
Customers in the niche electric-vehicle market will buy new vehicles, the study found, but are reluctant to purchase used ones.
An electric vehicle’s battery pack, which can weaken after 100,000 miles, can cost thousands to replace.
“Pure electrics have been slow to catch on in the resale market,” Eric Ibara, director of KBB’s residual consulting, told USA Today.