What’s the REAL value of an EV when the range and battery life are considered?
The True Valuation
Are you considering selling or trading in your electric vehicle (EV) and upgrading to a new 2023 model? Or perhaps you’re a buyer looking to see what’s available in the second-hand market. In both cases, you should fully understand the real value of an EV when considering its range and life.
For decades, second-hand automobiles and other used vehicles factored in specific criteria to determine what their resale value was. Now that many EVs are entering the resale market, the traditional valuation methodologies used by fuel-burning, internal combustion engine vehicles (ICEVs) are missing the mark.
Why? Because prioritizing metrics, such as odometers, do not correspond well to aging EV batteries, according to Recurrent, a company devoted to providing transparency in pre-owned EV transactions. This missing link is particularly important in used EV valuations, as EV batteries are expensive. In fact, the battery is the most expensive part of an EV, and it degrades over time, as does its value. Knowing these factors helps both buyers and sellers of new and used EVs make more informed decisions in the expected range both today and later in an EV’s life.
Recurrent selected Black Book to power this mission. Black Book sources and integrates vehicle history reports from Autocheck® data to provide a history of valuations. In this collaboration, Recurrent’s new Range Score value models 100 million recorded EV miles and Black Book’s vehicle valuation will together make value adjustments for good batteries. This partnership is revolutionary in terms of providing more transparency to an evolving and growing used EV marketplace – that which includes more than 2.5 million vehicles in the United States alone. The results will provide EV owners further insight into the real-time value of their vehicles as well as the confidence of used EV buyers that they are getting a fair price for their EVs.
How it Works
By accessing the Recurrent website and selecting the Sell with Recurrent program, you can review EV model range scores and vehicle valuation backed by Black Book data. This information can result in premium offers from EV specialist car dealerships nationwide. How’s that for easing the transaction?
Let’s assume you are an EV owner looking to sell your vehicle. Recurrent takes its range score and shares it with dealerships. It then organizes the offers, making it easy to compare and choose a buyer. Perhaps you prefer to sell your EV on your own, without the middleman. Range Score will provide the same service in a private buyer transaction. Alternatively, maybe you aren’t ready to sell today. No problem. You can still connect with Recurrent and gain access to ongoing battery information and insights. Additionally, you will receive wellness monitoring and get updated assessments of your car over time. You will be able to compare your EV with hundreds or even thousands of similar cars. Recurrent supports more than 50 U.S. vehicle makes and models.
Now let’s assume you are employed by a dealership. The battery can be a dealer’s biggest unknown, making your job specifically challenging. With Recurrent Range Score, it’s easier to understand what an acceptable selling range is. You’ll achieve this by comparing the car’s current expected price range to that of its original purchase price. This difference in amount will differ from its EPA-rated range (the approximate number of miles that a vehicle can travel in combined city and highway driving using a mix of 55% highway and 45% city driving before needing to be recharged[i]). EPA-rated ranges are rarely accurate as automakers apply their own adjustment factors to the EPA results and often change those adjustment factors later.
Benefitting Both Buyers & Sellers
More and more dealerships across the U.S. are adding Recurrent’s Range Scores to their used EV inventory. Today, that number totals more than 50. In addition, Recurrent Reports are also available, offering even greater detail. These reports included battery warranties, expected range under differing conditions and the expectations for range change after three years of ownership.
So far, the results have been impressive. Vehicles that have Recurrent Reports have been able to sell for thousands of dollars more than vehicles without the report. An additional benefit is that the reports create a better experience for the buyer by setting accurate expectations around the range.[ii]
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