It has been predicted that the value of electric cars are likely to take a nose dive by the time they reach 5 years old, this is according to ACF Car Finance Limited.
The depreciation in value is expected to be extremely significant, in fact it is thought that electric vehicles will only be worth 10% of their original value at around 5 years old.
When an electric vehicle reaches the ripe old age of 8, it will probably need to have its battery replaced. This could set the lucky owner back a whopping £8,000! So it’s no surprise the value will have hit rock bottom by the time the car hits the second hand car market.
And things are not likely to change anytime soon, unless manufacturers of electric cars can come up with a plan to increase the life expectancy of the battery past the estimated 8 years, or at the very least bring down the cost of the replacement.
The future success of electric cars, and the number we can expect to see on Britain’s roads, is largely dependent on the success they achieve in the second hand car industry.
Given the shocking figures already mentioned, it is unlikely that these cars will be high on many motorists list, especially if they are older than 2 or 3 years. Any drivers intending to sell or trade in their electric car will need to brace themselves for the bad news.
Granted, buyers could grab themselves a bargain second hand model, but there is a good chance they will be stung when the car reaches 8 and needs the battery replacing.
ACF’s Divisional Group Buying Manager, Leyton Cooper explains, ‘We sell thousands of cars each year, and I’m sure that the percentage of electric models will start to rise dramatically as the second-hand market comes on-line”.
Cooper goes on, “We estimate that by around 2013 there will be a major rise in the number of second-hand electric cars coming into our showrooms. If the market isn’t going to stall at that point, manufacturers will have to start addressing the battery problem now”.
At Think Insurance, the motor trade insurance specialist, we are hopeful that manufacturers of these electric vehicles, focus their efforts on resolving the issues with the car batteries sooner rather than later. We want to see these vehicles thriving in the second hand car market, rather than being a drain on everyone’s pocket. It is important that all dealers and traders in the used car market are reassured before the influx of these electric cars hit the forecourts.