Depreciation is huge factor if you buy something for utility.

I think we can say that EV and ICE has nearly same utility, perks on either side. Faster refuelling vs. being able to do it at home.

Now next we can compare operational costs, what is the cost of fuel/electricity and maintenance. With home charging yes EVs are ahead.

But if we take into account Purchase price minus price you get when selling. Well EVs are often more expensive to start with. And then they depreciate more so you get less as an percentage from original purchase price.

Now it can very well be that you come lot of ahead in scenarios where you replace car with new one every 3 or 5 years with ICEs.

So total cost of ownership does matter. And big chunk of that is depreciation. Unless you are one of the few who buy new and then drive it to junk yard.

Unless a 5 year old EV has lost a lot more functionality than a 5 year old ICE, that situation doesn't seem likely.

If in 5 years, your EV (that had similar utility as an ICE when you bought it) has lost so much value relative to a new EV, then the new EV must offer much more utility over both the old EV and the old ICE, in which case your ICE should have lost a similar amount of value.

While I don't dispute EV depreciation (it's a fact, no matter the explanation), then I don't think depreciation is as "huge" of a factor as you make it out to be. People buy new cars all the time, while the added utility over a used car is negligible.

I.e, I've only bought cars that are 10+ years (exactly due to the depreciation factor!), but most other people buy or lease as new of a car as they possibly can afford. Doesn't make financial sense to me, yet it's done so very often.