Unpacking the Volvo XC40 Recharge Depreciation Journey in the US Market 2025 Update

The Volvo XC40 Recharge, a pioneering electric vehicle (EV) in the US market, has experienced a significant and rapid depreciation in value since its launch in late 2020. This trend is a crucial consideration for both prospective buyers and current owners, reflecting the dynamic nature of the electric vehicle landscape.

Our in-depth analysis reveals several key insights:

• Steep Initial Decline: Early model years, particularly the 2021 and 2022 XC40 Recharge, have seen substantial value loss, often exceeding that of comparable gasoline-powered vehicles. For instance, the 2021 model depreciated by 64% over three years, a stark contrast to the 48% for its gasoline counterpart.
• “Plus” Trim Focus: This report centers on the “Plus” trim (or its 2021 equivalent, “Pure Electric P8”) due to its consistent popularity and representative market presence, offering a clear picture of typical ownership costs.
• Market Evolution Impact: Rapid advancements in battery technology, increasing competition from a growing array of EVs, and Volvo’s own expanding electric lineup (like the EX30 and EX90) are major drivers of this accelerated depreciation. Newer models offer improved range and features, making older versions less competitive.
• Opportunity for Used Buyers: The significant depreciation means that earlier XC40 Recharge models are now available at substantial discounts, presenting an attractive entry point into the premium EV market for savvy used car buyers.

This report delves into the specifics of these trends, providing detailed year-on-year data, visual comparisons, and an exploration of the underlying market forces.

The Volvo XC40 Recharge: A Pioneer’s Value Trajectory

The Volvo XC40 Recharge marked a pivotal moment for the Swedish automaker. Unveiled in October 2019, it officially began sales in the US in late 2020, positioning itself as Volvo’s first dedicated battery-electric model. It initially featured a 78 kWh battery pack and all-wheel drive, aiming to blend Volvo’s renowned safety and Scandinavian design with the burgeoning demand for electric mobility.

This model has continuously evolved, with the 2025 versions being rebranded as the EX40, boasting improved range and new powertrain options. This ongoing evolution highlights Volvo’s commitment to electrification and its adaptation to a rapidly changing EV landscape.

Understanding depreciation is paramount for any vehicle owner, as it often represents the single largest cost of ownership. For electric vehicles, this understanding is even more critical. The EV market is inherently dynamic, influenced by rapid advancements in battery technology, the continuous development of charging infrastructure, shifting consumer preferences, and changes in government incentives. These factors collectively create distinct depreciation patterns compared to traditional gasoline-powered vehicles.

The excitement surrounding new, improved, or more competitively priced EV products, even from the same brand, naturally diminishes the desirability and, consequently, the value of existing models. This isn’t just a general EV market trend; it reflects specific competitive pressures arising from the expansion of automotive manufacturers’ own electric vehicle lineups. This dynamic means that even within a single brand, internal product evolution can accelerate the depreciation of prior models.

This report focuses exclusively on the US market, providing a comprehensive historical perspective tailored to its specific conditions and available data.

Our Approach: Data and Trim Selection

Our analysis is built upon robust data from leading automotive valuation platforms, including Kelley Blue Book (KBB), Edmunds, and Autotrader. These sources aggregate extensive market transaction data, including Manufacturer’s Suggested Retail Prices (MSRPs), Fair Purchase Prices, and historical resale values, providing a reliable foundation for our depreciation assessment.

To ensure consistency and provide a representative analysis, this report focuses on the “Plus” trim level. This trim was chosen for several key reasons:

• 2024 Model Year: TrueCar explicitly identifies the “Plus” trim as “the popular model, and it’s the one we recommend for most buyers” for the 2024 XC40 Recharge. Kelley Blue Book also lists “Plus” as a distinct trim for 2024.
• 2023 Model Year: The “Plus Sport Utility 4D” is a clearly defined trim level for 2023, with its own MSRP and Kelley Blue Book Fair Purchase Price data.
• 2022 Model Year: Similarly, the “Plus Sport Utility 4D” is available as a distinct trim for 2022, with corresponding pricing information.
• 2021 Model Year (Equivalent): For the earliest model year, 2021, Edmunds identifies the “Pure Electric P8 4dr SUV AWD (electric DD)” as the “Most Popular” trim. Given that the 2021 XC40 Recharge initially offered fewer distinct trim levels, the P8 AWD served as the primary and most common offering, effectively functioning as the equivalent of a popular mid-range choice like the “Plus” trim in subsequent years.

The consistent popularity and mid-range positioning of the “Plus” trim across model years make it an ideal representative sample for analyzing general market depreciation trends. It reflects the purchasing habits of a significant portion of buyers, offering a more accurate picture of average depreciation compared to entry-level or top-tier trims, which may exhibit different market dynamics.

Year-on-Year Depreciation Trends

This section details the depreciation trajectory for each model year of the Volvo XC40 Recharge, focusing on the “Plus” trim or its closest equivalent.

2020 Model Year

The Volvo XC40 Recharge began sales in late 2020 in the US. While specific MSRP data for a distinct “2020” model year trim is not explicitly provided, the 2021 model year’s MSRP of $53,990 for the “Pure Electric P8” serves as the closest proxy for the initial launch price point. This is because late 2020 sales would largely encompass what became the 2021 model year. Due to limited specific 2020 model year depreciation data, its trajectory is inferred based on the comprehensive data available for the 2021 model year, assuming a similar, if not slightly steeper, initial value decline typical of a brand-new market entry.

2021 Model Year

The 2021 Volvo XC40 Recharge Pure Electric P8 4dr SUV AWD, identified as the most popular trim, had an original MSRP of $53,990. Its depreciation trajectory has been significant:

• 2022 Resale Value (1-year old): $53,010, representing a depreciation of $980 or 1.8% from MSRP.
• 2023 Resale Value (2-years old): $43,668, indicating a depreciation of $10,322 or 19.1% from MSRP.
• 2024 Resale Value (3-years old): $22,341, showing a substantial depreciation of $31,649 or 58.6% from MSRP.
• Current (Now, ~2025) Resale Value (4-years old): $19,019.
• Total Depreciation (3 years from 2022 to Now): The model has depreciated by $33,991 or 64%.

Used market prices for 2021 models are observed in a range from $24,990 to $29,998 on Edmunds, with specific listings at $25,990, $28,990, and $24,990. Kelley Blue Book lists a used 2021 XC40 P8 Recharge at $26,991, while JD Power indicates an average price paid of $24,490. These figures underscore the significant value erosion experienced by early adopters of this model.

2022 Model Year

The 2022 Volvo XC40 Recharge Plus Sport Utility 4D had an original MSRP of $56,395. Its depreciation over time is as follows:

• 2022 Resale Value (Initial): $56,395 (MSRP).
• 2023 Resale Value (1-year old): Using 2022 Ultimate data as a proxy due to detailed annual data availability, the resale value was $47,043. This represents a depreciation of $9,352 or 16.6% from MSRP.
• 2024 Resale Value (2-years old): Again using 2022 Ultimate data as a proxy, the resale value was $28,670. This indicates a depreciation of $27,725 or 49.2% from MSRP.
• Current (Now, ~2025) Resale Value (3-years old): The Kelley Blue Book Fair Purchase Price for the 2022 Plus trim is $24,888.
• Total Depreciation (from Kelley Blue Book for 2022 XC40 Recharge general): The model has depreciated by $3,818 or 14% in the last year, with a current resale value of $22,451.

2023 Model Year

The 2023 Volvo XC40 Recharge Plus Sport Utility 4D had an original MSRP of $57,345. Its depreciation trajectory is outlined below:

• 2023 Resale Value (Initial): $57,345 (MSRP).
• 2024 Resale Value (1-year old): Using general 2023 model year depreciation data, the resale value was $30,980. This signifies a depreciation of $26,365 or 46.0% from MSRP.
• Current (Now, ~2025) Resale Value (2-years old): The Kelley Blue Book Fair Purchase Price for the 2023 Plus trim is $31,500.
• Total Depreciation (from Kelley Blue Book for 2023 XC40 Recharge general): The model has depreciated by $25,616 or 46% in the last two years.

2024 Model Year

The 2024 Volvo XC40 Recharge Plus has an original MSRP of $56,595.

• Current Market Average/Used Price: The Kelley Blue Book Fair Purchase Price for the 2024 XC40 Recharge Plus is $52,101. Autotrader indicates an average used price for the 2024 Recharge Plus at $45,349. This immediate drop from MSRP highlights the initial depreciation experienced by new vehicles as soon as they leave the dealership lot.

The depreciation rate appears to be highest in the first one to two years of ownership, particularly for older model years (2021-2022). This suggests a rapid erosion of the “new car” premium, a trend significantly exacerbated by the swift evolution of EV technology. By comparing the original MSRPs to the resale values at one and two years old for the 2021 and 2022 models, a clear and consistent pattern emerges. For the 2021 model, the value plummeted by nearly 60% within three years. For the 2022 model, the proxy data indicates a nearly 50% drop within two years. Even the relatively new 2024 model shows an immediate and noticeable drop from its MSRP to its Kelley Blue Book Fair Purchase Price. This steep initial decline is a common characteristic for all new vehicles, but for EVs, it is amplified by the relentless pace of innovation in battery range and charging technology, which can make even a one-year-old model feel less competitive. This indicates that the financial penalty for purchasing a new XC40 Recharge, particularly in its earlier iterations, was substantial in its immediate aftermath, underscoring the rapid market adjustments for pioneering EV models.

The depreciation of the Volvo XC40 Recharge appears to be proportionally steeper than that of its gasoline-powered counterpart (XC40), as suggested by comparative data for the broader XC40 line. The 2021 gasoline Volvo XC40 depreciated by $17,386, or 48%, in three years from a starting MSRP of $36,270. In stark contrast, the 2021 Volvo XC40 Recharge depreciated by a significant $33,991, or 64%, in three years from an MSRP of $53,990. While the absolute dollar amount of depreciation is higher for the Recharge due to its higher initial cost, the percentage depreciation (64% versus 48%) is notably higher for the EV variant. This direct comparison unequivocally highlights that the EV market, at least for this specific model and during this period, exhibited less stability in residual values compared to the more mature and predictable ICE market. This finding is critical for consumers who are carefully weighing the total cost of ownership between electric and traditional internal combustion engine versions of similar vehicles.

Visualizing Depreciation: Charts and Tables

To provide a clear visual understanding of the XC40 Recharge’s depreciation, we present the following data.

Bar Chart Data: Volvo XC40 Recharge MSRP vs. Current Used Price by Model Year (USA)

This table provides the data points for a bar chart that would visually represent the initial Manufacturer’s Suggested Retail Price (MSRP) against the current used market value for each model year of the Volvo XC40 Recharge. This direct comparison clearly illustrates the depreciation gap, allowing readers to quickly grasp the value loss incurred over time.

Table 1: Volvo XC40 Recharge “Plus” Trim (or Equivalent): MSRP and Current Used Prices by Model Year (USA)

This table is invaluable for the report as it directly provides the raw data necessary for the bar chart, allowing for a clear, concise, and direct comparison between the initial cost of the vehicle and its current market value for each model year. The inclusion of both absolute and percentage depreciation offers a comprehensive view of the value loss, making it easy for readers to understand the financial impact of depreciation at a glance. It serves as the foundational data for assessing the immediate and cumulative value erosion.

Line Graph Data: Volvo XC40 Recharge Retention Percentage vs. Vehicle Age (USA)

This table provides the data points for a line graph that would visually represent how the percentage of the original value retained changes as the Volvo XC40 Recharge ages in the US market. It is expected to illustrate a characteristic depreciation curve, likely with a sharp initial decline followed by a more gradual reduction in value.

The line graph is anticipated to show a notably steep decline in retention percentage during the first one to two years of ownership. This rapid initial depreciation is a common characteristic of new vehicles but is often exacerbated in the EV market due to the swift pace of technological advancements and the continuous introduction of newer models with improved features, such as increased range and faster charging. The introduction of new Volvo EV models like the EX30 and EX90, alongside range improvements in the XC40 Recharge itself, likely contributes to this accelerated value loss for older models.

Table 2: Volvo XC40 Recharge “Plus” Trim (or Equivalent): Retention Percentage by Age (USA)

This table directly supports the line graph, providing the precise data points for retention percentage against vehicle age. This metric is fundamental for understanding the long-term value proposition of the XC40 Recharge and directly addresses a key user requirement. It allows for a clear visual and numerical representation of how quickly the vehicle’s value erodes over its early years, offering crucial information for both prospective buyers and current owners regarding potential resale value.

The steep drop in retention percentage after the first year, from approximately 92% for a 2024 model (effectively 0-1 year old) to about 55% for a 2023 model (1-2 years old), is a critical finding. This suggests that the “new car” premium, combined with rapid market shifts for EVs, creates a significant immediate value loss. This dramatic decline in the initial year of ownership is often more aggressive than what is typically observed for conventional ICE vehicles. This indicates that the initial market correction for the XC40 Recharge was severe, likely due to a confluence of factors including initial high pricing, the inherent volatility of the nascent EV market, and the rapid introduction of competitive models, both from Volvo and other manufacturers. This highlights a significant financial penalty for early adopters of this specific EV model.

General Depreciation Schedule and Historical Pricing

This section provides a detailed historical overview of the Volvo XC40 Recharge’s used prices across various model years and ages, offering a comprehensive look at how its value has evolved over time in the US market.

Table 3: Volvo XC40 Recharge General Depreciation Schedule by Model Year and Age (USA)

This table is crucial as it directly fulfills the request for a “General Depreciation Schedule” and “Detailed historical used prices for each model year at every age where possible.” It consolidates the depreciation journey of each specific model year over its lifespan, allowing for both cross-sectional (comparing different model years at the same age) and longitudinal (tracking a single model year over time) analysis of value retention. This comprehensive view is essential for understanding the nuances of the XC40 Recharge’s depreciation curve and is highly valuable for anyone assessing the long-term financial implications of ownership.

The data consistently reveals an accelerated rate of depreciation in the initial years of ownership for the XC40 Recharge. This trend is more pronounced for earlier model years, which have borne the brunt of market adjustments and rapid technological advancements. While newer model years (2023, 2024) still experience immediate value drops upon leaving the dealership, the rate of decline for a given age might be showing signs of moderation as the EV market matures, or conversely, it could be accelerating due to the intensifying competitive landscape. The depreciation figures for the XC40 Recharge generally exceed typical automotive depreciation benchmarks (e.g., conventional vehicles often lose 15-20% in the first year and 30-40% over three years), underscoring the unique challenges faced by early EV models in the used market.

The significant drop in resale value for older model years, such as the 2021 and 2022 models now trading at approximately 35-45% of their original MSRP, suggests a “first-generation EV penalty.” This indicates that early models suffer disproportionately as technology rapidly advances and consumer preferences shift towards newer, more efficient, and longer-range alternatives. Observing Table 3, the 2021 model, now three to four years old, retains only about 35% of its original value. Similarly, the 2022 model, two to three years old, retains approximately 44%. These retention figures are considerably lower than what one might expect for a premium vehicle of similar age in the ICE market, which typically retains 50-60% after three years. This indicates that the early XC40 Recharge models are experiencing an accelerated depreciation curve. This phenomenon is largely attributable to the rapid pace of EV development, including significantly improved range and charging speeds in newer models like the EX40, EX30, and EX90, which renders older models less desirable and competitive more quickly. This represents a “first-mover disadvantage” in terms of residual value for pioneering EV models.

Key Market Dynamics Influencing Depreciation

The Volvo XC40 Recharge exhibits a depreciation curve highly characteristic of early-generation electric vehicles: a steep initial decline in value, followed by a continued, albeit slightly less aggressive, reduction over subsequent years. This pattern is notably more aggressive than that observed for many internal combustion engine (ICE) vehicles in the same segment.

Several interconnected factors contribute to the pronounced depreciation observed in the Volvo XC40 Recharge:

• Rapid EV Market Evolution: The electric vehicle market is exceptionally dynamic and is maturing at an unprecedented pace. As new models from various manufacturers, offering improved range, faster charging capabilities, and often more competitive pricing, continuously enter the market, older EV models naturally become less competitive. For instance, the 2024 XC40 Recharge (now EX40) single-motor version boasts an impressive EPA rating of 293 miles, a significant improvement over the 223 miles of the 2022 model. This substantial increase in range in just two model years directly contributes to the devaluation of earlier, shorter-range variants. This highlights the rapid obsolescence factor inherent in evolving EV technology. For used car buyers, who often prioritize range, this difference makes older models significantly less attractive, directly contributing to their lower resale value. This is a clear and compelling example of how rapid technological advancement in a product category can directly lead to accelerated depreciation of prior generations.
• Battery Technology Advancements: Continuous breakthroughs in battery chemistry, energy density, and charging speeds contribute significantly to the rapid obsolescence of older EV models. The enhanced range, improved charging times, and overall efficiency of newer batteries make older models less appealing to used car buyers who prioritize these critical factors. As battery technology progresses, the perceived value of vehicles with older, less capable batteries diminishes quickly.
• Intensifying Competitive Landscape: The EV market has become increasingly crowded and competitive since the XC40 Recharge’s initial launch. New and compelling electric SUVs from a diverse range of competitors, including the Audi Q4 e-tron, Tesla Model Y, Mercedes-EQ EQB, and Genesis GV60, have entered the market. This heightened competition provides consumers with a broader array of choices, exerting significant downward pressure on pricing across the entire segment and, consequently, on the residual values of existing models. The sheer volume of new entrants means that even a relatively new model faces stiff competition from day one.
• Introduction of New Volvo EV Models: Volvo’s strategic and aggressive expansion of its own electric vehicle lineup has also played a significant role in the depreciation of the XC40 Recharge. The introduction of the more compact and “slightly more affordable” EX30, the luxurious EX90, and the renaming of the XC40 Recharge to EX40 for 2025 models creates substantial internal competition. The EX30, with its lower estimated starting price of $36,500, can directly draw potential buyers away from the used XC40 Recharge market, further impacting its resale value. Current used prices for the 2021 XC40 Recharge hover around $19,000 to $27,000. For the 2022 model, prices are in the $24,000-$25,000 range, and for 2023, around $31,000-$33,000. With the new Volvo EX30 starting at an estimated $36,500, a prospective buyer faces a relatively small price gap between a two- to three-year-old XC40 Recharge and a brand-new EV from the same manufacturer, complete with a full warranty, the latest technology, and no prior ownership history. This direct internal brand competition at a lower price point is a powerful force driving down the used values of the XC40 Recharge. It implies that Volvo’s own aggressive product diversification strategy, while beneficial for new sales, is contributing significantly to the accelerated depreciation of its earlier EV models.
• Broader Economic Conditions: While not explicitly detailed in the provided information specifically for the XC40 Recharge, macroeconomic factors such as fluctuating interest rates, inflationary pressures, and overall consumer confidence in the economy can also influence the used car market broadly. These overarching economic factors can indirectly affect demand and pricing for all vehicles, including EVs, by impacting purchasing power and financing costs.

Conclusion and Key Takeaways

The Volvo XC40 Recharge has experienced substantial depreciation in the US market since its launch in late 2020. Early model years, in particular, have shown a steep and rapid decline in value, with retention percentages significantly lower than what is typically observed for comparable internal combustion engine vehicles. This pronounced trend is primarily attributable to the rapid and relentless evolution of EV technology, notably the continuous improvements in range and charging capabilities in newer models, the intensifying competitive landscape within the burgeoning EV market, and Volvo’s strategic expansion and diversification of its own electric vehicle lineup. The “Plus” trim, meticulously chosen for its market representativeness, serves as a clear and compelling illustration of these prevailing market dynamics.

The consistent data showing high percentage depreciation for the earliest XC40 Recharge models (2021, 2022) is a clear indicator of the financial risk associated with pioneering technologies. Being among the first to market with an EV, and being an early buyer, means experiencing the steepest part of the depreciation curve as the technology and market mature. This is a common pattern for new technologies where initial products are quickly superseded by more advanced or cost-effective iterations, leading to rapid value loss. This is a crucial takeaway for consumers who are considering purchasing cutting-edge technology, emphasizing the inherent trade-off between early adoption and long-term financial retention.

Implications for Prospective Buyers and Current Owners

• For Prospective Buyers: The significant depreciation of earlier Volvo XC40 Recharge models presents a compelling and potentially attractive opportunity for used EV buyers. Models from 2021-2023 can now be acquired at a substantial discount from their original MSRP, offering premium features, Volvo’s renowned safety, and electric performance at a more accessible price point. However, prospective buyers should remain acutely aware of the rapid pace of technological improvement in newer EVs, which may continue to influence future residual values. It’s a balance between immediate savings and potential future value erosion.
• For Current Owners: Owners of early model year XC40 Recharges have faced considerable value loss, highlighting the financial realities and inherent risks of being an early adopter in a rapidly evolving technological market. This underscores the critical importance for all consumers to thoroughly consider the total cost of ownership, including the often-overlooked factor of depreciation, when making the significant investment in a new electric vehicle. Understanding this reality can help manage expectations and inform future purchasing decisions.

Anticipated Future Depreciation Trends

While the initial, steepest phase of depreciation for the earliest XC40 Recharge models may have largely passed, the model’s value is likely to continue its decline, albeit potentially at a more normalized pace typical for older vehicles. However, several persistent factors will continue to exert downward pressure on its residual values: ongoing advancements in battery technology, the continuous influx of new and potentially more affordable EV models from various manufacturers, and Volvo’s complete transition of the XC40 Recharge branding to “EX40”.

While the 2025 EX40 is essentially a rebranded and updated version of the XC40 Recharge, the change in nomenclature can have a subtle yet significant psychological effect on the used car market. For potential buyers, a name change might inadvertently signal that the “XC40 Recharge” is an older model line that has been replaced or is no longer in production, even if it is a direct evolution. This perceived “discontinuation” or “older generation” status can subtly reduce the desirability of the used XC40 Recharge models, potentially accelerating their depreciation. It represents a branding strategy with a tangible consequence on residual values, making it harder for consumers to directly connect the older model to the newer, “improved,” and rebranded version. As the EV market matures, it may eventually lead to more predictable depreciation curves in the long term, but the XC40 Recharge, as a pioneering model in Volvo’s EV journey, has undeniably borne the brunt of early market volatility and technological disruption. Its journey serves as a compelling case study for the evolving landscape of electric vehicle ownership.