Manufacturers should tackle electric vehicle (EV) battery
ownership issues to protect residual values from “dramatic falls”
and develop “battery lease strategies”, according to vehicle
valuation specialist Glass’s.
The company has conducted an analysis of the
factors that would affect the depreciation of EVs, developing a
proprietary methodology to forecast EV residual values.
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Glass’s MD Andy Carroll said: “After one year
of ownership we would expect EV residual values to be above the
segment average expressed in terms of pound values.
“But, if the battery is owned rather than
leased, and lacks the appropriate extended warranty, the value of
the typical EV will then fall dramatically until the vehicle is
five years old, at which point the car will have a trade value
little more than 10 percent of the list price.”
According to Glass’s, a typical EV battery has
a useful life of eight years and costs some £8,000 to replace.
Carroll added: “If the anticipated £8,000 cost
of the battery in such a car were taken off the list price, and
recovered instead through a long-term £100-per-month battery lease
scheme, the retained value in monetary terms would make it one of
the best performing used cars in its segment, rather than one of
the worst.”
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By GlobalDataHe added that manufacturers should also
consider leasing the car and battery together as a single package
“to bring on board early adopters and win over a sceptical buying
public”.
“This would have the benefit of ensuring that
all EVs return to the franchised dealer network at the end of the
contract period,” he said.
