EV residuals up to 50% by 2025
From next year, the residual value (RV) of electric vehicles (EVs) will decline at a slower rate than that of diesel or petrol cars, a report by Dutch bank ING predicts. As a result, the RV of an EV bought in 2020 will be between 40% and 50% in 2025. For a petrol car, the RV will be 35% to 42.5%, while a five-year-old diesel will fetch just 27.5% to 35% of its original sticker price.
The ING report is based in part on Autorola data, and on a survey of 48,000 consumers. About a quarter of those surveyed said they would consider buying a used EV in 2025. Considering the limited supply of used EVs by then, the great demand will help push up RVs.
EVs are mechanically less complex than combustion-engine vehicles, and thus less subject to wear and tear. Batteries and engines are generally covered by long warranties (8 years). EVs are also reliable, quiet, and benefit from fiscally advantageous regimes across Europe.
The report says EV models with the highest mileage ranges will be the most popular ones on the used-car market. Manufacturers have announced the release of such higher-range EVs for next year. The higher RVs of those models will provide yet another incentive for drivers to switch from fossil-fuel-based cars to electrically-powered vehicles, ING predicts.
For more on EV RVs, check #109 of Fleet Europe Magazine, out soon!