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Glass Guide Issues EV Battery and EV Resale Value Declines Statement

GlassGuide

In brief: Glass Guide, a UK-based automotive guide, has issued a report regarding the fast-falling resale values of electric vehicles due to battery system replacement requirements and costs.

The word

GlassGuide.co.ukThe report, while bolstering electric vehicles as being the future, is critical of how current manufacturers and sales forces are dealing with the longer-term issue of battery costs of replacement and their resulting ill-effect on resale values of EVs.

"After one year of ownership we would expect EV residual values to be above the segment average expressed in terms of pound values," explains Andy Carroll, Managing Director at Glass's. "But, if the battery is owned rather than leased, and without the appropriate 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 per cent of the list price."

This depreciation is mainly due to an industry and consumer understanding of the high cost of battery replacement and their relatively limited lifespans (usually 5-7 years, by warranty).

Carroll suggests that manufacturers mitigate this problem through battery lease schemes until longer-lived battery technology is developed.

And so ...

An interesting report on something that many electric vehicle enthusiasts often overlook.

Photo credits: Glass Guide

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