The EV depreciation problem explained (and how dealers are conquering it)

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Welcome to the Market Pulse, your cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.

Electric vehicles (EVs) are holding resale value unevenly: Conventional hybrids are holding their resale value better over time, while plug-in hybrids are seeing steeper drops in trade-in and used-car pricing.
Stellantis is exiting its U.S. plug-in hybrid (PHEV) lineup: Late in 2025, Stellantis leaned on heavy incentives to clear PHEV inventory ahead of its now-confirmed phase-out.
But dealers are reacting by limiting EV risk, not exiting the segment: Stores are tightening inventory standards, repricing more often, and being more selective about which EV units are worth holding.

(Source: Stellantis / Cox Automotive / KBB / Edmunds / Black Book / iSeeCars)

EV depreciation is reshaping how dealers think about risk in 2026.

As 2026 begins, dealers are paying closer attention to how different electrified vehicles hold value, because that’s where the pressure is showing up first.

Here’s what the data shows: Conventional hybrids continue to hold value best (about 38% depreciation over five years, meaning they retain roughly 62% of MSRP).

Plug-in hybrids, meanwhile, lose value faster (closer to 50% depreciation).

But Stellantis $STLA ( ▼ 4.22% ) PHEVs sit even lower, with modeled losses approaching 60%+ following their planned phase-out for the 2026 model year.

Why this matters: These drops apply across EV nameplates, not just Stellantis, and are front-loaded, meaning most of the value loss happens early in ownership, which is why trade values and retail pricing adjust first, well before inventory builds or demand visibly slows.

As Rob Lisowski, General Sales Manager at Gallatin CDJR, explained:

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“When incentives and lease support are strong, and the customer has easy charging access, they can be a home run. When incentives soften—or when customers are uncertain about charging, reliability headlines, or long-term support—buyers tend to shift back to gas and traditional hybrids quickly.”

Rob Lisowski

And you can see that sensitivity reflected in used EV pricing…

(Chart: Manheim Used EV Value Index, YoY % change)

The Manheim Used EV Value Index shows sharp swings over the past few years, with values dropping more than 20% YoY in 2023, stabilizing in 2025, and remaining volatile.

That volatility increases caution around trades and holding periods, even when demand hasn’t disappeared.

Now layer in Stellantis’ decision to phase out its current North American PHEV lineup.

And naturally, with $8,000–$10,000+ in incentives thrown at those models toward the end of 2025, and the discontinuation now public, the market is reassessing PHEV risk relative to conventional hybrids.

NOTE TO DEALERS:

Mike McVeigh, a CDJR dealer, told us the shift by Stellantis didn’t catch them off guard because they weren’t waiting for an announcement.

Instead, they started paying attention when ’26 ordering options didn’t open, incentives had to do the heavy lifting, and the federal EV tax credit went away.

Why this is worth noting:

When I asked him what advice he’d share with other dealers, he said, “Positioning inventory is key. New and used. No more blindly ordering because the factory rep begged you to.”

His point: Miss those signals, or order blindly, and you end up holding cars tougher to move than most.

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Building on how EV depreciation is showing up at retail, Lisowski also shared how his team is navigating EV risk.

Here are his team’s Dos and Don’ts.

Do: Match scarce plug-in inventory to the buyers who actually want it.

Going forward, Lisowski says demand for used PHEVs will just be narrower and more specific than before, not totally gone.

He even noted that certain buyers are actively looking for clean Wrangler 4xe and Pacifica Hybrid units, especially one-owner vehicles with clear service and recall history.

The key: “Low-mile, clean-history units with full reconditioning are retail plays. Anything with questionable history, higher miles, or heavy spend should be evaluated quickly to avoid aging risk.”

Do: Treat certainty as the product you’re really selling.

Lisowski said hesitation at retail usually has less to do with price and more to do with unanswered questions.

“Practically, used shoppers pay for certainty,” he said. “The more transparent we are with history, updates, and reconditioning, the better these vehicles hold at retail.”

Why this matters: Clarity around recalls, updates, and reconditioning directly eases questions around EV pricing, while eliminating any potential deal friction.

Don’t: Cut corners on recalls or stop-sale work.

Shortcuts around recalls and campaigns show up immediately at retail, which is why they’re one of his team’s #1 priorities.

“First, [ensure] tight recall and stop-sale discipline with clean documentation. No shortcuts. Complete the campaigns, document the repairs, and disclose clearly to build confidence.”

This tactic goes hand-in-hand with Lisowski’s beliefs on certainty. Because gaps in documentation amplify resale risk faster than pricing ever will.

We’re barely two weeks into January.

That means there are still 350-plus days left in this year for another OEM (Nissan, Honda, Toyota, Kia, take your pick) to quietly tighten ordering, pull support, or rethink a product line that’s gotten harder to explain on the lot.

And when that happens, the question will be whether your store saw it coming.

Some dealers (like Mike) spotted the Stellantis shift early.

But others got caught treating it like normal year-end noise and kept moving.

Here’s my point: A signal is a signal is a signal. And ignoring one just because it doesn’t sit under your rooftop only delays the lesson.