BusinessGreen.com: Pricing company Glass's says growing familiarity with technology among dealers and consumers is closing gap on competitors
The value of second-hand electric cars is closing the gap on diesels and could overtake them as used-car retailers and buyers became more familiar with the technology.
Trade pricing bible Glass's says in many cases residual value forecasts for electric vehicles (EVs) are already broadly similar to diesels, which could spur even greater uptake of low-carbon vehicles.
Rupert Pontin, head of valuations at Glass's, said the "gold standard" for EVs is the Tesla model S, whose 220-mile range ensures its three-year/60,000 mile value is about 43 per cent – almost exactly the same as well-established direct competitor the BMW M535D M Sport.
However, the residual value of EVs across the market is closing in on diesel competitors. The Vauxhall Ampera Electron's residual value of around 28 per cent after three years or 60,000 miles is bearing down on the Insignia SRI CDTi's 35 per cent, while the BMW i3 extender Suite at 39 per cent is just a few points away from the BMW 320d Sport's 43 per cent.
"Clearly, there is still a difference here between EVs and diesels but there are signs that it is closing all the time," Pontin added. "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."
EV ownership has increased remarkably after a slow start, with registrations under the government's plug-in grant scheme quadrupling over 2014. Initial sluggish uptake was attributed to fears over the range of EVs and how fast they might lose their value, especially as there was little transparency about how much battery packs might be to replace.
Renault offers battery leasing to get around the problem, but there are also signs that manufacturers have listened to consumers – after much pressing, Nissan has announced a new battery pack for the Leaf EV would cost €5,000 (£3,600), taking away a large degree of uncertainty over residual value (RV).
EU legislation setting a target of 95 grams of CO2 emissions per kilometre for average new cars in 2020 is likely to drive the market and with as many as 40 new EV models expected to go on sale in the next three years, RVs are expected to continue to hold up.
"EVs of one kind or another currently account for about two per cent of the market," Pontin said. "However, if the UK is to meet its 2020 emissions target of 95g/km per vehicle, their penetration must increase quite rapidly. As this happens and they become a more familiar part of our daily lives, we expect EV RVs to firm up and stabilise."
The value of second-hand electric cars is closing the gap on diesels and could overtake them as used-car retailers and buyers became more familiar with the technology.
Trade pricing bible Glass's says in many cases residual value forecasts for electric vehicles (EVs) are already broadly similar to diesels, which could spur even greater uptake of low-carbon vehicles.
Rupert Pontin, head of valuations at Glass's, said the "gold standard" for EVs is the Tesla model S, whose 220-mile range ensures its three-year/60,000 mile value is about 43 per cent – almost exactly the same as well-established direct competitor the BMW M535D M Sport.
However, the residual value of EVs across the market is closing in on diesel competitors. The Vauxhall Ampera Electron's residual value of around 28 per cent after three years or 60,000 miles is bearing down on the Insignia SRI CDTi's 35 per cent, while the BMW i3 extender Suite at 39 per cent is just a few points away from the BMW 320d Sport's 43 per cent.
"Clearly, there is still a difference here between EVs and diesels but there are signs that it is closing all the time," Pontin added. "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."
EV ownership has increased remarkably after a slow start, with registrations under the government's plug-in grant scheme quadrupling over 2014. Initial sluggish uptake was attributed to fears over the range of EVs and how fast they might lose their value, especially as there was little transparency about how much battery packs might be to replace.
Renault offers battery leasing to get around the problem, but there are also signs that manufacturers have listened to consumers – after much pressing, Nissan has announced a new battery pack for the Leaf EV would cost €5,000 (£3,600), taking away a large degree of uncertainty over residual value (RV).
EU legislation setting a target of 95 grams of CO2 emissions per kilometre for average new cars in 2020 is likely to drive the market and with as many as 40 new EV models expected to go on sale in the next three years, RVs are expected to continue to hold up.
"EVs of one kind or another currently account for about two per cent of the market," Pontin said. "However, if the UK is to meet its 2020 emissions target of 95g/km per vehicle, their penetration must increase quite rapidly. As this happens and they become a more familiar part of our daily lives, we expect EV RVs to firm up and stabilise."
