Battery Replacement Bill May Negatively Affect Electric Vehicle Values

By the time a five-year old electric vehicle (EV) reaches the second-hand market, it could be worth only ten percent of its new price, reported ACF Finance. The organization believes that the cost of electric battery replacement is the cause of this depreciation.

An EV battery usually must be replaced when the car is eight years old and can cost up to £8,000.

This situation may cause consumers to avoid purchasing EVs that are more than a few years old. ACF Group Buying Manager Leyton Cooper predicts that for EV use to become widespread, the second-hand market will need to flourish. For this to happen, EV manufacturers must resolve the issues of battery lifespan and replacement cost.

Mr. Cooper said that though the depreciation situation is great for EV buyers, these consumers must be aware of the shortened battery life. ACF specializes in mid-priced family cars and expects an increased percentage of EVs once that second-hand market becomes established.

The company deals in bad credit car finance, something the used car market is increasingly depending on to prosper.

Many drivers are now realizing that their ability to borrow money is affected by even small blemishes on their credit history. ACF estimates a sharp increase in the number of used EVs in its showrooms by the year 2013. It is calling on manufacturers to address the battery issue now in order to prevent the market from stalling at that time.

Consumers who want to make a positive impact on the environment may consider an EV. If they have trouble obtaining traditional car loans due to their credit history, they may need to explore bad credit car finance. Though the purchase price for a used EV that is over three years old may be very low, buyers could soon incur several thousand dollars in expense to replace its battery.