17 Mar 15

Residual values for EV's 'closing the gap'

One of the unknown factors surrounding the emergence of electric vehicles as fleet cars, has always been the complete uncertainty regarding residual values. Now Glass’s, a leading company in the RV domain in the UK, has reported that electric vehicle residual value forecasts are moving closer to traditional diesel cars as the used car market becomes more accustomed to the technology they contain. The publishers of the trade pricing guide say that, in some cases, RV forecasts are already broadly similar to their diesel equivalent.

Rupert Pontin, head of valuations, explains: “The residual value gold standard for EVs is the Tesla Model S. Its minimum 220 mile range means that its three year/60,000 mile value is around 43% - almost exactly the same as a well-established direct competitor, the BMW M535D M Sport”.

According to Glass's, elsewhere in the market, EV values are also closing the gap on diesels. The Vauxhall Ampera Electron's 27.58% at 3 year 60,000 miles is not far adrift of the Insignia SRI CDTi's 34.56% while the BMW i3 extender Suite (photo) at 39.11% is just a few points away from the BMW 320d Sport's 43.46%.

“Clearly, there is still a difference here between EVs and diesels but there are signs that it is closing all the time. Crucially, when the overall running costs of an EV are taken into account, factors such as savings on fuel mean that they may beat traditional models”, Pontin goes on.

A major boost in the last few months, Rupert added, has been Nissan's announcement that a new battery pack for the Leaf EV would cost 5000 Euros. Rupert Pontin  notes: “Removing the mystery surrounding the battery pack pricing took away a large degree of uncertainty from forecasting its RVs. While 5000 Euros is expensive, it is something that can be planned into a budget when you are making an RV forecast”.

Authored by: Tim Harrup