As global economies grow more complex and unpredictable, many new-vehicle buyers are making more cautious choices. Instead of opting for a car based on aspirational desires, running costs and value retention have grown to be even more important factors influencing purchasing decisions in the U.S.
As of 2026, we are seeing some of the worst value retention rates affecting the premium and electrification segments. EVs in particular have fallen on hard times, primarily due to the discontinuation of the Clean Vehicle Tax Credit. Some brands are enjoying relative success with their electric vehicles, but staggering depreciation rates are still affecting the ownership experience.
How Depreciation Works In The U.S. Car Market
Car resale value represents the estimated market price a vehicle can command when sold or traded in later, essentially acting as the a salvageable portion of the original purchase price. For American consumers, this factor is a critical financial safeguard because a car is often one of the largest purchases a household makes, and its value can plummet by as much as 20 percent within the first year and 60 percent over five years.
By prioritizing models with high resale value, buyers ensure they have more positive equity to put toward their next down payment, reducing the overall cost of ownership. This consideration is especially vital in the U.S. market to avoid becoming underwater on an auto loan, a situation where the owner owes more to the bank than the car is actually worth due to steep depreciation.
EV Depreciation Remains A Serious Issue
Electric car resale values in the U.S. have struggled primarily due to the blistering pace of technological advancement, which effectively renders older models obsolete as newer versions arrive with significantly better range and faster charging speeds at similar price points. This rapid turnover is compounded by federal tax credits, which essentially lower the ceiling for used prices by subsidizing new ones. Aggressive MSRP cuts from major manufacturers also erase thousands in trade-in value overnight.
For the broader EV industry, these depreciation rates have created a unique market. They scare off some new-car buyers and lead to higher leasing costs as finance companies adjust to risk, but they are simultaneously fueling a quiet boom in the used market. By 2026, this glut of affordable second-hand EVs has become a primary driver for mass adoption, finally allowing budget-conscious consumers and apartment dwellers to transition away from internal combustion as the price gap between used gas and electric vehicles continues to narrow.
The Ford Mustang Mach-E Is The Budget EV That Can Do It All
There’s no other EV that ticks so many boxes as this aspirational SUV.
The Mustang Mach-E’s Problematic Value Retention
The 2026 Ford Mustang Mach-E may be one of the most popular electric vehicles on the market today, but it’s also one that suffers from one of the worst depreciation rates. According to Edmunds, the entry-level Select trim will lose $26,096 of its $37,795 base MSRP over five years. iSeeCars indicates a similar trajectory, suggesting the EV will lose $23,026 or 60.9 percent of its value over the same period.
While the Mach-E’s depreciation isn’t amazing, the EV SUV has received a lot of praise from existing owners. The 2026 model year currently holds a 4.7/5 average score on the Edmunds consumer review portal, based on 27 independent submissions. Key strengths of the model include its driving experience, acceleration, and interior practicality.
How Impactful The Mach-E Has Been For Ford
Ford introduced the Mustang Mach-E on November 17, 2019, but it only hit dealership floors for the 2021 model year. The Mach-E was a revolutionary pivot for the brand, marking the first time the iconic Mustang nameplate was applied to a four-door electric SUV. Its key customer base fits tech-forward families, and traditional Mustang fans who require more utility than a coupe provides, successfully bridging the gap between emotional performance and daily practicality.
The Mach-E has been a substantial success for Ford, totaling approximately 203,500 units sold in the U.S. since its launch through the end of 2025. However, 2026 Q1 sales reached 4,600 units, reflecting a 60.4 percent decrease compared to the same period in the previous year as the market faces increased competition and shifts in consumer demand. Despite this recent decline, the product remains revolutionary because it proved Ford could translate its most valuable icon into a digital-first, zero-emissions format, featuring industry-leading tech.
This 250,000-Mile Ford Mustang Mach-E Proves EVs Last Longer Than You Probably Think
With a little common sense, you can easily get 250,000 miles — or much more — out of an EV’s battery pack.
Poor Depreciation, But Great Value
The 2026 Ford Mustang Mach-E continues to center its cabin experience around a massive 15.5-inch SYNC 4A touchscreen and a 10.2-inch digital cluster, which are standard across all trims. For 2026, the interior remains highly functional with 29.7 cubic feet of rear cargo space and a standard heat pump to improve cabin warming efficiency.
The $37,795 Select trim features Black Onyx ActiveX synthetic leather upholstery and an eight-way power driver’s seat. Standard convenience includes dual-zone automatic climate control and a six-speaker audio system with SiriusXM 360L. While it features a comprehensive suite of safety tech, more advanced convenience features like the 360-degree camera and BlueCruise hands-free driving are housed in the optional Technology Package for $995.
The Premium trim significantly elevates interior comfort for $40,595. This adds heated and ventilated front seats, a heated steering wheel, and a memory system for the driver’s seat and side mirrors. Entertainment is upgraded to a 10-speaker Bang and Olufsen sound system featuring Beosonic technology and a subwoofer. This trim also introduces multicolor ambient lighting as standard and offers a panoramic fixed-glass roof as an available option for $1,875.
The performance-oriented GT trim shifts the interior toward a sportier aesthetic for $53,395. This adds Ford Performance front sport seats featuring Miko reflective inserts and Copper Metallic stitching. It retains the Premium trim’s high-end amenities, such as the upgraded sound system and heated steering wheel, while adding unique GT-specific metal door scuff plates. For a more distinctive look, the GT offers the $2,495 California Special package, which introduces a Navy Pier interior with blue and gray stitching and Rave Blue accents.
The $57,690 Rally trim is tailored for off-pavement adventures, featuring a unique Oxford White steering wheel and interior trim pieces that match its rally-inspired exterior. Like the GT, it comes standard with bolstered Ford Performance front seats and the full suite of entertainment tech. A standout convenience feature for the Rally is its unique RallySport Drive Mode integration, which provides specific performance data on the central display, and it includes the Technology Package as standard equipment to assist with both trail and highway navigation.
These EVs Offer Better Range Than A Mustang Mach-E For Less Money
EV buyers looking to get the most range for their buck should check out these ten models instead of just going for the ever-popular Mustang Mach-E.
The Mach-E’s Potent Performance Outputs
The base rear-wheel-drive model features a single permanent-magnet motor located on the rear axle, with a 266 horsepower and 387 pound-feet output. This achieves a 5.8-second 0 to 60 MPH time and 112 MPH top speed. Adding the extended battery pack increases power to 290 hp, but the added weight increases the acceleration time to 6.3 seconds. Thankfully, you benefit from a slightly higher 124 MPH top speed.
The dual-motor configuration with the standard battery pack increases the output to 325 hp and 500 lb-ft, which gets you from 0 to 60 MPH in 5.2 seconds with a 112 MPH top speed.
- Base Trim Engine
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EV
- Base Trim Transmission
-
Automatic
- Base Trim Drivetrain
-
Rear-Wheel Drive
- Base Trim Horsepower
-
264 HP
- Base Trim Torque
-
387 lb.-ft.
- Base Trim Fuel Economy Equivalent (city/highway/combined)
-
106/98/102 mpge
- Base Trim Battery Type
-
Lithium iron phosphate (LFP)
- Make
-
Ford
- Model
-
Mustang Mach-E
Adding the extended battery pack results in a 365 hp and 500 lb-ft output, resulting in a 4.1-second 0 to 60 MPH time and 124 MPH top speed.
The GT is the performance-oriented model, benefiting from 480 hp and 600 lb-ft state-of-tune, 3.8-second 0 to 60 MPH time, and 120 MPH top speed. Upgrading to the Rally or GT Performance package increases torque to 700 lb-ft, which reduces the 0 to 60 MPH time to 3.3 seconds with a 124 MPH top speed.
Fuel Cost Savings Make Up For The Depreciation
One of the most efficient options of the Mustang Mach-E is the base rear-wheel-drive variant with the standard 72 kWh battery pack. The EPA estimates that this will only cover 260 miles on a single charge, but you benefit from an attractive 32 kWh per 100-mile energy consumption estimate.
The 91 kWh extended battery pack interestingly improves efficiency to 31 kWh per 100 miles and extends the range to 300 miles per charge. The base dual-motor configuration covers just 240 miles on a single charge and returns a 34 kWh per 100-mile consumption average.
Applying the extended battery pack to this model increases the range to 280 miles, but improves energy consumption to 37 kWh per 100 miles. The GT returns 280 miles on a single charge and a 37 kWh per 100-mile energy consumption average. The Rally covers 255 miles on a single charge and achieves a 30 kWh per 100-mile consumption average.