Currently reading: EVs 'worthless within 5 years'
Experts say EVs will suffer horrendous depreciation on the used market unless action is taken
Autocar
News
1 min read
25 June 2010

The car valuation experts at Glass’s Guide have warned that, unless manufacturers take action soon, electric cars will suffer horrendous depreciation on the used market.

“If cars and batteries are sold rather than leased, and no special warranty cover is in place, the typical EV will retain only 10 per cent of its value after five years,” warns Andy Carroll, managing director of Glass’s.

This, says Carroll, is a function of the recognition that a typical EV battery will have a useful life of eight years and cost £8000 to replace.

By Glass’s reckoning, Nissan’s Leaf — available next year at around £23,350 — will be worth less than £3000 at five years old. That would make its purchase hard to justify next to a conventional car, which would be worth at least 25 per cent of its value at the same age.

As well as a purchase option, Nissan will offer a lease option to UK buyers which could avoid the depreciation issue, but it has yet to announce details.

However, take batteries out of the ownership equation, for example as Renault suggests via a £100-a-month lease scheme, and the costs could be offset against savings in petrol or diesel.

That way, Glass’s say, EVs could become the best-performing cars on the road in terms of residual value.

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andrepaul999 27 June 2010

Re: EVs 'worthless within 5 years'

The Ev's future value will be assured when pattern parts become more readily available, as they become more popular there will be a greater choice of these battery units available and that will bring the price down as a whole

its economics.....i really dont see a problem here

Los Angeles 27 June 2010

Re: EVs 'worthless within 5 years'

Lesia44 wrote:
So you suggest that people buy two cars, one for town driving and another for when they go further afield?
Yes.

Granted it's not a very revolutionary idea, but if affordable why not? Advise your insurance company you need only limited mileage a year each vehicle and consequently lower premiums. If urban travel is your modest need, bus routes and times are limited, if you're elderly and can't walk great distances, an urban car is about perfect.

There is nothing sinister in the proposal. We've had small urban cars in petrol form for decades, only now folk who claim to be passionate car lovers draw the line at innovation that doesn't suit their prejudices.

That aside, what we need are urban cars built of materials that can be reused for the same purpose as they were first installed, from "cradle to cradle."

Lesia44 27 June 2010

Re: EVs 'worthless within 5 years'

Los Angeles wrote:
As I understand matters EVs are being promoted for exactly that, urban driving, hence spurious road tests over long distances don't make sense.
So you suggest that people buy two cars, one for town driving and another for when they go further afield? A car that is only suitable for limited range urban driving is next to useless for most people.

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