Tesla Model 3 Vs. Hyundai Ioniq 6 Vs. Polestar 2: Which Has The Best Resale Value?

They are all electric, they are all sedans, and they all lose money faster than a gas car ever would. The question is which one loses the least. Electric vehicles depreciate faster than their gas-powered equivalents. iSeeCars data shows an average five-year depreciation of 58.8 percent for EVs in the United States, compared to roughly 41.5 percent for all vehicles. If you are shopping for the Tesla Model 3, Hyundai Ioniq 6, or Polestar 2, understanding which one holds its value best is an important part of the ownership equation.

The benchmark: Tesla Model 3

The Model 3 is the resale king of this group, and it is not particularly close. iSeeCars puts its five-year depreciation at 54.5 percent, retaining 45.5 percent of its original value, the best figure among all Tesla models and one of the strongest in the EV sedan segment. The Model 3 also won a JD Power 2026 ALG Residual Value Award, reinforcing its position at the top of the class.

That said, 54.5 percent depreciation over five years is still brutal compared to gas sedans, which average 38.9 percent over the same period. And the Model 3 is not immune to market shocks. Tesla's aggressive price cuts in 2023 and 2024 hammered used values across the lineup, with late-model used cars suddenly competing against cheaper new ones.

What props up the Model 3's resale is sheer demand. Tesla still accounts for over 45 percent of all EVs sold in the U.S., meaning a massive buyer pool already comfortable with the Supercharger network is willing to buy used. That brand gravity keeps Model 3 prices higher than almost any competitor.

The contender: Hyundai Ioniq 6

The Ioniq 6 depreciates faster. iSeeCars pegs its five-year loss at 60.4 percent, nearly six points worse than the Model 3. Recharged forecasts the 2025 model settling in the mid-50s percent depreciation range over five years, marginally better than earlier model years but still well behind Tesla.

The Ioniq 6's problem is not the car itself. It has excellent efficiency, 800-volt charging, and Hyundai's generous warranty. The problem is the sedan body style in a market that prefers crossovers, a smaller used-car buyer pool than Tesla's, and a brand that does not yet carry the same EV cachet. The silver lining is that steep depreciation makes the Ioniq 6 a compelling used buy. A two-to-three-year-old example with low mileage and years of battery warranty remaining can be had for a fraction of its original sticker.

The underdog: Polestar 2

The Polestar 2 finishes last, but barely. Its five-year depreciation sits at 60.6 percent per iSeeCars, just two-tenths of a point behind the Ioniq 6. Recharged noted roughly 53 percent depreciation at the three-year mark in broader studies.

The Polestar 2's challenge is brand awareness. It is a Volvo subsidiary selling a niche Scandinavian EV sedan against the most recognized EV brand on the planet. Recharged put it plainly: smaller brand footprint means softer demand and steeper early depreciation. Early 2021 and 2022 models that stickered in the low-to-mid $50,000s now regularly appear in the high $20,000s and low $30,000s. By 2026, used prices will have largely stabilized, meaning most of the damage is done, and the curve is flattening for second owners.

The variable nobody talks about enough

Battery health is the single most important factor in used EV resale, and it overrides every brand advantage. Two identical Model 3s can have wildly different real-world range depending on charging habits. Tesla packs tend to degrade at roughly 1 percent per year, better than the EV average of about 1.8 percent. Hyundai's 10-year/100,000-mile battery warranty provides a longer safety net than Tesla's 8-year/120,000-mile warranty on the Model 3 Long Range, which helps buyer confidence in the used market.

The bottom line

The Tesla Model 3 holds its value best, retaining roughly 45.5 percent after five years compared to about 39.5 percent for the Ioniq 6 and Polestar 2. Brand recognition, Supercharger infrastructure, and sheer volume of Tesla buyers in the used market keep its floor higher than either competitor. But all three lose value significantly faster than equivalent gas sedans, and all three become increasingly attractive the moment someone else absorbs that first-owner hit.

If you are buying new and plan to sell within 5 years, the Model 3 is the best choice. If you are buying used, the Ioniq 6 and Polestar 2 offer more car for less money precisely because they depreciated harder. The best resale value and the best deal are not always the same car.

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This story was originally published April 17, 2026 at 3:00 PM.