The Refresh Problem: How Rapid EV Updates Leave SUV Owners Underwater on Loans
Tesla's 2024 Model Y refresh caused 25-35% depreciation on recent models within months, proving EV depreciation risk is a real budget line item.
The widely held assumption that EVs depreciate less than gas cars doesn't hold up against rapid model refresh cycles. When Tesla announced the Model Y Highland refresh in 2024, used values for 2021–2023 models dropped 25–35% within months, leaving sticker-price buyers underwater on loans before the balance declined. The author argues owners should budget for depreciation risk the same way they budget for maintenance—it's not a worst-case scenario, it's the actual cost of buying into a brand that updates faster than loans decline.
The widely held assumption that EVs depreciate less than gas cars doesn't account for rapid model refreshes: when Tesla announced the Model Y Highland refresh in 2024, used-car values for 2021–2023 models dropped 25–35% within months, leaving owners who paid sticker under water on loans they hadn't finished. Treat depreciation risk as a line item in your EV budget the same way you budget for a tire rotation — it's not a worst-case scenario, it's the actual cost of buying into a brand that updates its lineup faster than the loan balance declines.