Appraising an electric vehicle is similar to appraising a traditional gasoline-powered vehicle in some ways, but there are key differences to consider. Here are some factors that can affect the appraisal value of an electric vehicle:
Battery Condition: The battery is a critical component of an electric vehicle, and its condition can greatly impact the appraisal value. A battery that is in good condition and has a long life remaining will add value to the vehicle, while a battery that is nearing the end of its life will reduce the value. Determining battery health is achievable with onboard tools and industry software in the market today but not all of them have the same level of accuracy. In many cases, the EV battery will outlive the vehicle and is close to 40% of the total vehicle value. Work with your OEM and Industry partners for help in determining the true state of health (SOH) of the largest single asset in the vehicle, the EV battery,
Mileage: As with any vehicle, mileage is a key factor in determining its value. Electric vehicles typically have lower mileage than traditional gasoline-powered vehicles due to their limited range, but high mileage can still reduce the value. The miles of an EV vehicle won’t determine the longevity of the transmission or the condition of the engine because you have neither. It also has much less impact on the mechanical functions of the vehicle because an EV vehicle has only 20 moving parts as opposed to an internal combustion engine that has over 2000 moving parts. However, the miles can give you a lens into cycle life capacity. The cycle life of a battery is how many times it is charged from 100% down to 0%. For example, higher mileage EVs have most likely used DC fast chargers more often than lower mileage EVs, and that decreases battery range and life over time.
Age: The age of the vehicle is also an important factor to consider when appraising an electric vehicle. As with any vehicle, newer models tend to have a higher value than older ones. The technology in the battery chemistry and architecture along with the technology in the cooling systems has a lot to do with how batteries are maintained during their life in the vehicle whether without understanding the specific owner’s driving or charging behavior. Some cooling systems have a more robust way of managing DC fast charging to reduce the loss of battery life while charging more often away from home. Also, the software technology and newer vehicles allow the battery management system to manage the health of the battery in more sophisticated ways to increase the long-term efficacy of the entire electronic powertrain.
Charging Time and Range: The charging time and range of an electric vehicle can also impact its appraisal value. Vehicles with longer ranges and shorter charging times are typically more valuable than those with shorter ranges and longer charging times. Understanding the differences between standard range, standard range plus, extended range, and performance models can help you determine the true value of the electric vehicle that you’re taking in on trade or appraising. It’s important to know every aspect of that vehicle as it pertains to range and charging profile to determine how valuable the vehicle is to that next consumer.
Brand and Model: The brand and model of the electric vehicle can also affect its appraisal value. Some brands and models may be more popular or have a better reputation for quality and reliability, which can increase their value. This can be determined in many ways. One is the warranty period of one EV may be more valuable than the warranty period of another. Typically eight years and 100,000 miles are standard warranty parameters but some go up to 10 years and 120,000 miles and some even more. Understanding that part of the assurance side of the EV can help you pay more at the time of appraisal and sell it for more money at the time of retail. Also understanding the infrastructure set up to charge that vehicle is critical. Having a conversation about an EV that uses a Tesla supercharger network can help you build more value into the vehicle and sell it for more.
Subscriptions: Knowing the software versions and subscription agreements the prior owner had on their EVs is important when appraising the value of the vehicle and selling the vehicle for retail. For example, if a certain EV taken in on trade has the full self-driving package that’s transferable to the next owner, that package is worth $15,000 in additional value on that vehicle than without. However, if a certain EV has a horsepower upgrade that’s nontransferable to the second owner, you’ll want to make sure and not overpay at the time of appraisal for a vehicle with greater horsepower that won’t be available when you sell the vehicle to a new owner. All of these attributes can be discussed and evidenced during the trade process with online documentation or ownership paperwork. The key here is to do your due diligence.
Overall, appraising an electric vehicle requires a thorough understanding of its unique features and components, as well as an understanding of the current market demand for electric vehicles. It is recommended to seek assistance from companies like BEVEverything.com that can train and certify appraisers and transform your key staff members to become EV automotive experts who are knowledgeable about electric vehicles to ensure EV retail success.
The EV Guy!