Used Electric Car Conundrum: In the world of used electric vehicles (EVs), a new race is on one that aims to determine the true worth of these eco-friendly rides. Unlike traditional cars where age and mileage are the yardsticks, EVs have a different currency: the health of their batteries.
This presents a unique challenge for prospective buyers. Until recently, the lack of reliable battery health data has hampered the used EV market. But heres where the plot thickens. A handful of startups are now scrambling to fill this information gap by providing quick and accurate battery health assessments.
One such player in this race is Altelium, a UK startup set to launch its EV battery state-of-health test and certificate this year in thousands of US and UK car dealerships. Their mission? To ensure that the used car market runs smoothly, thereby supporting the transition to electric mobility. It’s a smart move because, in the world of EVs, the battery isn’t just a part it’s nearly half the price tag. How that battery has been treated is paramount.
Charging habits play a significant role in a battery’s health. Charging too quickly, consistently topping off when the battery isnt nearly empty, or leaving it fully charged for extended periods can all affect its lifespan. Austrian startup Aviloo, which has garnered investment from industry giant Volkswagen, offers tests to gauge battery health.
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While automakers provide EV range data, it’s often overly optimistic. Independent testing has become essential for buyers who want a clear picture of a used EV’s health. The lack of transparency has hindered the growth of the used EV market.
In fact, used EV prices in the US were down 32% YoY in September, while the same figure for fossil-fuel cars was only 7%. In the UK, used EV prices saw a 23% YoY drop in August, while fossil-fuel car prices increased by at least 4%. This price gap was attributed to concerns about battery life in used EVs. And let’s not forget Tesla’s entry into the used EV market, which sparked a price war.
Now, the stage is set for these startups, offering battery health assessments to shed light on the used EV market. As more EVs enter the market and their leases expire, knowing the capacity of an EV’s battery will be paramount for buyers. In Europe alone, over 1.2 million fully electric cars were sold in 2021, and many of them will become available in the used car market when their leases end in 2024. With low used EV prices, new EV prices could be impacted.
The used EV market needs to function at its best to support new EVs. Startups are competing with established players like Germany’s TUV Rheinland, which has launched Battery Quick Check, jointly developed with startup Twaice. The competition is heating up, and buyers will undoubtedly benefit as these services help ensure transparency and reliability in the EV market. After all, a well-cared-for battery could mean a premium price when it’s time to sell your used EV.
Our Reader’s Queries
What is the most expensive part of an electric car to replace?
The expense of replacing a car battery can sometimes exceed the vehicle’s value, leading insurance companies to declare them as total losses. This can be a costly and frustrating situation for car owners.
How much is it to replace a battery in an electric car?
When an electric vehicle’s battery is no longer covered by warranty or is damaged in an accident, the cost of replacement can range from $5,000 to $20,000, according to Recurrent. The total cost is determined by factors such as the size, manufacturer, and type of battery pack.
Is there a downside to electric cars?
While electric vehicles have their benefits, there are also some drawbacks to consider. These include the challenge of finding charging stations, longer charging times, higher upfront costs, limited driving range, and the potential expense of replacing battery packs. It’s important to weigh these cons against the pros before making a decision about whether an electric vehicle is right for you.
Which electric car will hold its value?
The Tesla Model 3 boasts an impressive value retention rate of 42.9% over five years, surpassing the segment average by 6.2 percentage points. However, it falls slightly behind the industry average of 38.8%.