Residual values are perhaps one of the most important aspects of car ownership. Residual values determine monthly payments, lease rates, costs of ownership, and on and on. When new vehicles are released, it is often difficult to accurately determine residual values until several years later when the market demand determines value.
What about determining residual value for new technology such as electric vehicles? This discussion has many concerned sides. What will an EV be worth 5 years from now or 10 years from now when its $10,000 battery is no longer useful? Will the vehicle hold any value?
According to a UK based research firm called CAP, the answers to the questions above remain of particular concern, but reliable answers are still unavailable. CAP proclaims that they are "the premier provider of used and future residual values date", however even they are unable to answer the questions. As they said, "reliable future residual value forecasting is currently impossible."
Though they are unable to determine real residual values of electric vehicles, they did offer some insight based on their findings in commercial electric vehicle studies. As they stated in their press release, battery replacement costs render commercial EVs worthless after the expiration of the warranty. In addition they added, it's unlikely that high mileage EVs will retain any residual value.
CAP is currently investigating EVs to understand future residual values and have stated that they will release their results as soon as possible.
As many are aware, residual values are one of the most significant aspects of vehicle ownership. What will an EV be worth down the road? Any guesses?
Source: CAP via AutoBlogGreen