⚡ Hong Kong Electric Vehicle Used Market Value Fluctuations (Editor's In-Depth Analysis)

The popularity of electric vehicles in Hong Kong has been very rapid in recent years, especially models such as Tesla, BYD, BMW i Series, and Porsche Taycan, which can be seen everywhere on the streets.
However, the editor has observed a phenomenon: many electric vehicles depreciate faster in the second-hand market than fuel vehicles , and the price drop can even be as high as 40%-50% in the first two years.

Today, I will use the Hong Kong market as an example to analyze why this happens and how to reduce losses when buying and selling EVs.

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1️⃣ Current Status of Hong Kong’s Secondhand Electric Vehicle Market (2025)

The editor has compiled some real market data (from used car dealership quotes in mid-2025):

📌 Editor's observation:

• The price of pure electric vehicles is falling faster than that of hybrid and fuel vehicles , especially luxury brands, which have seen an astonishing drop.
• The decline in affordable EVs (such as BYD) was relatively mild, but still faster than that of fuel vehicles of the same price.

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2️⃣ Why are the second-hand prices of EVs in Hong Kong so volatile?

① Battery life and replacement cost

• The biggest concern for Hong Kong buyers regarding used EVs is battery degradation .
• If the battery health (SOH) is lower than 80%, the battery life will be significantly reduced and the resale price will drop sharply.
• Replacing the battery pack is expensive (approximately $120,000-$200,000 for Tesla, $80,000-$150,000 for other brands).

② New car technology updates quickly

• EV technology is advancing very rapidly. For example, the range, charging speed, and assisted driving systems are updated every year.
• When new models are launched, older models, even if they are relatively new, will be considered "outdated technology."

③ Policy and tax impact

• The government's "one-for-one" program boosted new car sales, indirectly increasing supply and pushing down prices in the used market.
• The exemption of first registration tax for new energy vehicles makes new car prices more attractive, making it difficult for used cars to maintain high prices.

④ Brand and maintenance network

• Some new brands (especially those from mainland China) have incomplete after-sales networks in Hong Kong, causing second-hand buyers to worry about parts supply and maintenance.
• Luxury brand EVs have expensive parts and repairs, so the price second-hand buyers are willing to pay is naturally lower.

⑤ Market demand structure

• Many people in Hong Kong buy EVs for the "one-for-one" tax incentives rather than for long-term use, resulting in a large number of cars flooding the used market after 2-3 years.

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3️⃣ Difference in second-hand price compared to fuel vehicles

📌 Editor's conclusion:

• The price of EVs in the used market is more easily affected by a single major factor (such as battery status) and is highly volatile.
• The value of fuel vehicles is more stable because technology changes slowly and the maintenance system is mature.

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4️⃣ Real Case Analysis

My friend A bought a Tesla Model 3 LR ($399,000) in 2021. When he wanted to trade it in in 2024, the dealership only offered $210,000. Reasons:

1. The "one-for-one" discount when buying cars that year boosted new car sales.
2. The new 2024 Model 3 has longer range and an updated interior, making the old model less attractive.
3. There is a large supply of similar cars in the second-hand market, and the room for negotiation is reduced.

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5️⃣ How to reduce EV depreciation risk (Editor’s Tip)

① Choose brands and models with strong value retention

• Tesla, BMW, and BYD are relatively well accepted in the Hong Kong second-hand market.
• Avoid brands with inconsistent after-sales service and hard-to-find parts.

② Pay attention to battery maintenance and testing

• Check the battery health (SOH) regularly and keep the test report.
• Avoid long-term high-power fast charging and long-term low battery.

③ Avoid buying before major technological changes

• If a brand is about to introduce a major change (such as new battery technology or a major styling overhaul), the old model will immediately lose value.

④ Make good use of the "one-for-one" and leasing models

• If you plan to use the car for a short period of time, you can consider leasing or a one-for-one deal and then replace the car after 2-3 years to lock in the cost.

⑤ Resale timing

• Avoid selling your old model immediately after the new model comes into the market.
• If there is a sudden increase in used market supply (e.g. a large number of leased vehicles being retired), the sale can be postponed.

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6️⃣ Future Trend Forecast (2025-2030)

The editor speculates based on market trends:

Short-term (1-3 years)

• EV used prices remain volatile, particularly due to battery health and new vehicle technology.
• The decline in low- to mid-priced EVs ($200,000-$300,000) will be smaller than that of high-end EVs.

Medium term (3-5 years)

• As second-hand buyers become more familiar with EVs and battery testing technology matures, market confidence improves and the decline slows.
• The government may introduce subsidies for second-hand EV purchases to stimulate demand.

Long-term (more than 5 years)

• When battery technology stabilizes and replacement costs decrease, EV depreciation rates are expected to approach those of fuel vehicles.
• High-end EVs will still see rapid price drops due to the characteristics of the luxury car market.

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📌 Editor's Summary

The value fluctuations in Hong Kong's used electric vehicle market mainly come from the rapid iteration of technology and the uncertainty of battery health .
In the short term, EVs will depreciate faster than fuel vehicles, but as infrastructure, maintenance networks, and battery technology mature, this gap will gradually narrow.

Editor's suggestion:

1. Choose a brand : Choose a brand that has high acceptance in the second-hand market.
2. Check the battery : Take good care of the battery and keep complete records.
3. Seize the opportunity : avoid selling cars during the release period of new models and the peak period of market supply.
4. Calculate the total cost : Don’t just look at depreciation, but also calculate the full-cycle costs such as fuel, electricity, and maintenance costs.