UPDATE: The Cadillac Lyriq, the automaker’s first all-electric SUV, has seen a staggering depreciation of 53% in just two years, losing approximately $35,000 of its value. As of now, the resale value of a 2023 Lyriq hovers around $30,000, making it an opportune moment for buyers looking for a used electric vehicle.
According to Kelley Blue Book, this rapid decline in value is part of a broader trend affecting early electric vehicle (EV) models. The 2022 Tesla Model X has depreciated by 55.23%, shedding about $72,000, while the Tesla Model Y shows a depreciation of 56.64%, losing around $38,510. The Lucid Air has also been affected, with its value plummeting from $128,000 to roughly $58,000, marking a decline of 54.74%.
Why is the Cadillac Lyriq and other EVs depreciating so rapidly? Experts cite several factors. Typically, new cars lose about 20% of their value in the first year and 30% in the second, with ongoing depreciation of 8% to 12% annually. However, EVs are experiencing even steeper declines, with some losing as much as $600 a day.
One significant reason for the swift depreciation is advancements in range and battery technology. When the Lyriq debuted in 2022, it offered an EPA-estimated range of 312 miles on a full charge, but by 2025, competitors are expected to exceed that with ranges of up to 326 miles. As technology improves, older models quickly become outdated, impacting their resale value.
Moreover, price cuts and incentives for new EV models further contribute to the depreciation of older vehicles like the Lyriq. Newer models boast longer ranges, more efficient batteries, and faster charging options, making them more attractive to buyers.
Looking ahead, the future doesn’t appear promising for the Lyriq. Projections by iSeeCars indicate that the vehicle could lose 71.9% of its value after five years, and a staggering 84.2% over ten years. In comparison, the average five-year depreciation for traditional SUVs is around 49%.
For potential buyers, this depreciation trend could mean significant savings on a used Cadillac Lyriq or other EVs. As electric vehicles continue to evolve, now may be the best time to consider investing in a used model before values decline even further.
Stay tuned for more updates as this developing story unfolds.
