Luxury EVs Are Losing Value Fast, and Even Rolls-Royce Can't Escape

Electric vehicles are dropping in value faster than any other type of car, and the trend now extends to the most exclusive names in the industry. A new report shows that even Rolls-Royce, a brand long associated with strong resale values, is seeing its first electric model suffer significant depreciation.

The Rolls-Royce Spectre, the company's first all-electric car, was built to showcase the quietest and smoothest ride possible using an EV powertrain. But on the used market, it's losing value at a rate that makes its gas-powered siblings look like safer investments. After two years, a Spectre that cost around $460,000 new can sell for roughly $350,000, a drop of about 24%.

If the car was loaded with options and priced near $530,000, the loss can reach 34%.

For comparison, the gas-powered Rolls-Royce Ghost loses about 18% over the same period, and the Cullinan SUV drops around 17%. The Spectre isn't alone among luxury EVs either. The 2025 Cadillac Escalade IQ has already lost a third of its value in just one year.

Industry observers say EV depreciation is driven by rapid improvements in battery technology, which make older models seem outdated quickly. Luxury EVs face a double hit because high-end cars already tend to lose value steeply. Even so, analysts note that buyers who can afford a $400,000 car may not be worried about resale value.

The bigger question is whether the Spectre's electric powertrain can uphold the brand's legacy, which has long been tied to its powerful V12 engines. While the Spectre delivers a smooth and quiet ride, some argue it lacks the defining character that made Rolls-Royce iconic.

Sources: CarEdge, Kelley Blue Book, Rolls-Royce.