![]() As new EVs improve and turn over, used EVs will depreciate less.Ībout the Author: Lawrence Knapp is the director of remarketing for Donlen.For the vast majority of car buyers, the extra features and performance of a new luxury car isn’t worth the price difference over a basic car. The secondhand market does not have access to this advantage and as such just makes the depreciation curve in the early years even steeper.Īs improvements to battery range and performance continue, the charging infrastructure expands, government subsidies expire, and new model choices evolve, the market for new EVs will grow and in turn so will the secondhand market. The upfront cost of an EV purchase was ameliorated by tax credits which are a one-time event for the purchaser and dependent upon their personal tax status and domiciled location. Government Policyįinally, government policy plays its part in impacting EV residual values. Fortunately, with new models like the Chevrolet Bolt, the Nissan Ariya, and the Audi Q4 E-Tron, we have a new acronym in our vocabulary – EUV. But most EVs in the early days were small, passenger-car-based models, which is another strike against them on the secondhand market. ![]() Ford has ceased production and most manufacturers are replacing sedans with small SUVs that have a higher seating position but are barely larger. For a nation used to driving pick-up trucks and SUVs, the passenger car has become less desirable. Accelerated development of a fast-charging network will go a long way toward improving EV residual values. But then Tesla’s supercharger network overcame this issue and is now a key factor in the stronger residuals on these vehicles. A decade ago, the charging infrastructure was immature and required multiple apps to pay for charging while confusing price structures caused uncertainty and range anxiety. Department of Energy, there are 43,944 public charging station locations with a total of 107,844 EVSE ports and less than 5% are fast charging. Seeing additional public charging stations will help assuage the range anxiety that prevents many from crossing over to EVs – both new and used.Īccording to the U.S. As EV adoption increases, however, access to public charging stations becomes more and more important. Most sources agree: Most charging takes place at home. Services that certify or independently assess the battery health could help to bolster demand and support higher resale values. The high cost of a replacement battery has a huge impact on a five-year-old vehicle and sometimes makes the repair not worthwhile.īeing able to reassure buyers about the battery life and condition is an important part of strengthening the secondhand market for used vehicles. If buyers believe EVs represent a huge risk, they either don’t buy or they require a hefty discount. Scare stories of customers who needed to replace battery packs on vehicles at astronomical costs did nothing to help the perception of used EVs in the secondhand market. One problem in determining the value of a used EV is evaluating the condition of the battery. This improvement in range widens the potential market for EVs to include people who have longer distances to travel. This year, median ranges for some models will exceed 300 miles. Looking back to 2011, the estimates were 68 miles and 94 miles, respectively.
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