Figure 7: 1 Year Depreciation History - Whole Sample (2002-2025)
chassis maintenance costs higher then vehicle residual cost after 8-10 year. Research on BEV vehicles show a battery useful life of 8-10 years, with costs Together with Chineses OEMs, also arrives new EV and Hybrids vehicles. Electric vehicles on average over the past several years, particularly during 2022-2024. This faster depreciation is driven by high new EV price volatility, rapid technological subsidies on new car pricing, and a high share of EV leasing that has increased used vehicle supply. On top of that, battery life expectancy and extra weights may turn While depreciation varies widely by model and segment, used EV values have generally fallen more sharply than those of comparable ICE vehicles, though this are indirectly affecting the ICE used car market, but in a selective rather than systemic way. Competitive pressure is strongest in urban, compact, and premium segments where EVs act as close substitutes, leading to softer ICE residuals in EV Looking at our sample, it seems evident that Chinese OEM cars have shown high rates of depreciation, at least in their first wave into the Brazilian market. In Figs 7-8, we show the average depreciation of ars in our sample vs Chinese models, for types of cars. We see that, throughout most of the sample and most of the time, Chinese cars have shown a higher degree of depreciation than their peers.