The technical leap in electric vehicles and the growing choice of models in recent years have clearly marked the future of the automotive industry. However, with more and more Europeans choosing electric drive, the basic rules of the car market remain the same: some vehicles retain a better residual value, while others lose it faster. As a result, buyers are increasingly asking what to consider when choosing an electric car, so that it still retains an attractive residual value after a few years.
One of the pioneers of modern electric cars can be called the first generation Nissan Leaf, which debuted in 2010. It was not only one of the first mass electric cars, but for some time it was practically the only choice if the buyer wanted a traditional hatchback that is suitable for everyday needs.
For this reason, Leaf’s residual value was initially quite high, but as more modern models emerged, they inevitably affected Nissan’s prices in the used car market. For example, in 2015, the Kia e-Soul offered not only a more playful look, but also a larger mileage margin. In this way, competition, both in terms of state-of-the-art technology and other features, has reduced Leaf’s residual value.
The value decreases as competition increases
For example, the first generation Leaf, made eight or nine years ago, now costs about 8 thousand euros, which is about 20% of its original value. Newer cars, six to seven years old, cost about 10 thousand or about one third of the original price, while the Kia e-Soul of the same year of production – 14-15 thousand euros or half the price of a new electric car.
Kārlis Mendziņš, electric car enthusiast and Latvia’s largest electromobility news sites Uzlādēts.lv The developer points out that the timeliness and availability of technologies with a single charge are key aspects that help maintain a higher residual value for electric cars.
For example, the new Hyundai Ioniq once cost much like the Nissan Leaf, but now the Ioniq’s residual value is higher because it’s more technically advanced: one charge can cover longer distances, it has battery cooling and electric drive works more economically.
Kārlis Mendziņš, electric car enthusiast and Latvia’s largest electromobility news sites Uzlādēts.lv creator
Technological progress
Competition between carmakers is driving rapid technological progress. Ten years ago, drivers were ready to accept an electric car that covered 100 to 150 kilometers on a single charge, but now the focus is on models with 300 and 400 km reach. This suggests that their residual value will be better in a few years, but the expert points out that much will depend on technological developments.
As long as battery technology continues to progress at a rapid pace and the prices of electric and internal combustion cars do not level off, the decline in value will be quite significant in the first year. A simple comparison: the petrol-powered Hyundai Kona costs around € 20,000 and the electric version around € 40,000, but after five years the two cars will cost similarly or at least there will be no radical price difference between them. At the same time, nowhere is it said that in five years’ time the reach of an electric car will not be considered, say, 800 km, and perhaps Kona, which now seems progressive, will become similar to the old Leaf in people’s perception.
Kārlis Mendziņš, Latvia’s largest electromobility news sites Uzlādēts.lv creator
Therefore, it is important to pay attention to other parameters of the electric vehicle, such as the battery charging speed. Although technology is also evolving in this area, many electric cars still need at least half an hour or an hour to get enough charge to continue their journey.
Some manufacturers deal with charging with an 800 volt system. For example, the Porsche Taycan, one of the first electric models with such a system voltage, achieves a reach of 100 km in a fast charging station in just five minutes. However, the 800 V system is not an exclusive privilege for expensive vehicles and is already available in much cheaper electric cars.
It is equipped with, for example, the new Kia EV6, providing the car user with extremely fast charging. It can charge a battery from 10 to 80 percent in 18 minutes, while the energy needed to cover 100 kilometers can be “refueled” in less than four and a half minutes. Depending on the version, the new Kia EV6 can cover distances of up to 510 km.
This means that even long journeys will be able to cover relatively long distances between charges, while the time spent at the charging station will be quite short. Such parameters of electric cars will be able to meet the needs of drivers for quite a long time, so it can be expected that their residual value will remain relatively high.
Guarantees that dispel doubts
Although electric vehicles are simpler in construction than internal combustion engines, drivers are often skeptical about batteries, which are the most expensive part of an electric car.
Electric car buyers are also concerned about the long-term capabilities of electric car batteries – charging intensity and capacity. However, the owner of a three- or five-year-old car should not have to worry about it.
Electric car batteries have an eight-year warranty in accordance with European Union requirements. Most manufacturers guarantee that at the end of this period, the remaining capacity of the battery will be 70 percent or more.
Kārlis Mendziņš, Latvia’s largest electromobility news sites Uzlādēts.lv creator
An electric car used with this warranty will retain a fairly high residual value even after several years, and the overall warranty of the car is also important. For example, Kia offers a seven-year warranty on its cars. If the first owner uses the car for five years, the next user takes over not only the batteries, but also all other parts of the warranty.
Autors: Speed
From time to time someone runs past to recharge. Other times it is long enough to write your article.
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