As automakers introduce more EVs to the market, pre-owned availability and demand will increase. When this happens, establishing an accurate EV resale value will be crucial to calculating the total cost of ownership, affecting a consumer’s purchasing and financing decisions. 

However, EVs operate differently than ICE vehicles, meaning OEMs and dealers must rethink how they assess their worth. Infrastructure needs, battery technology, model selection, and government regulations will all play significant roles in those valuations. 

This article discusses these four factors and how they impact EV valuations. 

4 Developments Affecting the EV Resale Value 

1. Access to “Fast-Charging” Stations Will Increase 

While studies find that most charging occurs at home, accessibility to public charging stations becomes more crucial as EV popularity rises. More public charging stations will alleviate some range anxiety that keeps many consumers from switching to EVs. 

However, only 12% of public charging stations are fast charging. The original charging infrastructure, built over ten years ago, was underdeveloped and complex, requiring numerous apps to pay for charging and offering an unclear pricing structure.  

The good news is that higher investments in fast-charging networks are underway, and development is accelerating. As drivers access more time-friendly charging options, EV resale values should climb. 

2. Used Batteries Perform Better Than Rumored 

Estimating EV resale values depends significantly on battery condition – which can be challenging to evaluate. A perceived detriment to used EVs is the hassle of replacing battery packs at high costs to the buyer. Those who view EVs as too risky will demand a significant discount or refuse to buy.  

To combat this misconception and boost resale values, dealers must reassure potential customers that battery quality and lifespans remain high after repurchasing. Dealers can make a compelling case by having service teams evaluate and certify battery health. 

3. Government Policy Should Help in the Long Run 

Government policy affects EV resale values in several ways, both negatively and positively.  

Tax credits, a one-time event for the buyer based on their tax status and place of residence, reduce the upfront cost of an EV purchase. Because the used market cannot take advantage of this offer, the early years of depreciation are significant. 

On the other hand, the US Government aims for 50% electrification by 2030, and manufacturers are making substantial investments in EV production to meet that expectation. Increased production will result in a higher percentage of EVs on the road and, over time, a better selection for resale. 

4. Consumers Have More Make and Model Options 

The traditional passenger car and SUV have lost favor in a country where people now prefer the center ground between the two: Crossovers. 

As a result, many automakers are switching from sedans to this relatively new model, which has higher seating positions and provides slightly more room. Almost half of all recent light-duty vehicle sales today are crossovers, making them the largest category. 

These changes in preference put initial EVs, which were almost exclusively compact passenger-car models, at a considerable disadvantage in the used market. However, as automakers ramp up their EV crossover production, pre-owned models should retain more value at resale. 

Accurate Vehicle Assessments Require the Right Technology 

An EV infusion is inevitable as fast charging stations become more accessible, battery packs prove more reliable, government regulations encourage further production, and a more comprehensive range of makes and models hit the market.  

An influx of new EVs eventually means more available used ones, and dealers must understand how the abovementioned factors affect an EV resale value to market their pre-owned models properly. 

Fortunately, dealerships can now access our industry-leading proprietary technologies to assess electric vehicles more accurately and sell more inventory.  

Contact us today and learn how Affinitiv’s data-driven solutions and EV initiative can help your dealership determine EV resale values as electrification takes a firmer hold of the auto industry.