Electric Cars May Depreciate More Than Expected

Contrary to popular belief, the electric car could be more expensive to run than its gas equivalents.

According to a study by Mitsubishi, which surprisingly is getting ready to launch its own electric car, high purchase price and rapid depreciation are what may make electric cars uncompetitive financially.

All new-car buyers take a hit on depreciation, as much as 20 percent the minute it's driven off the dealer lot.

With an EV, the battery pack often accounts for a much larger percentage of the car's original value. The problem is that no one knows how long the EV's battery will retain a charge.

Nissan has said that the Leaf battery might only hold 80 or 70 percent of its original charge after ten years. This makes the car worth considerably less.

But there are other benefits to going gasoline free - like no tailpipe emissions.

Considering other EV tradeoffs, such as range and infrastructure, depreciation is another thing EV buyers will have to take into account before purchasing.

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