Used electric vehicle batteries' health certificates potentially persuading second-hand buyers to purchase pre-owned electric cars.
Consider the game-changing move that Polestar has recently made to instill confidence in the used electric vehicle market. The brand, part of the Chinese Geely Group and a sibling to Volvo, has introduced battery state of health certificates with every resold electric vehicle, including the Polestar 2.
These certificates provide a detailed assessment of the battery's condition and usable capacity, aiming to establish trust and offer peace of mind to potential buyers. Ironically, one of the biggest obstacles to second-hand electric car purchases is the uncertainty over battery health and the potential costs associated with replacements—which could reach up to a whopping £30,000!
Despite various reports suggesting that EV batteries degrade far more slowly than expected, usually outlasting the rest of the car's components, it's clear that such fears are valid concerns in the minds of potential buyers. Polestar aspires to alleviate this anxiety by offering their customers transparency about the battery's condition. But will it truly convince buyers to grab these second-hand bargains?
Auto Trader, the country's largest used car platform, weighs in on this issue. Electric vehicle prices continue to decline due to an increased supply of second-hand models not matching demand. This decreased demand is primarily due to ongoing public concerns related to EV ownership, such as a lack of charging infrastructure, expensive public charging costs, and range anxiety. Fears surrounding battery life play a significant role in these concerns.
In March 2023, the average cost of an electric vehicle listed on Auto Trader was a comparatively reasonable £25,190—a 1.6% decrease from February. In contrast, the prices for petrol and diesel models remained relatively stable, rising by 0.1% and 0.8% respectively.
Polestar hopes that the battery certificates will be the game-changer needed to convince UK customers to invest in second-hand electric cars. Until the end of April 2023, customers who finance a pre-owned Polestar through a franchised dealer can benefit from low-interest rates and a free Zaptec home charger worth £495.
Curious about the cost of replacing an electric vehicle's battery? UK-based automotive risk intelligence company, Thatcham Research, estimates a replacement battery for a premium electric car would set you back around £29,500. For budget-friendly electric vehicles, the average cost of a battery replacement is expected to be approximately £14,200—nearly the same price as a brand-new Dacia Sandero (£14,715).
The introduction of these battery state of health certificates comes nearly two years before new EU regulations requiring all electric vehicles to carry a battery passport. The passport will detail the raw material origins, the proportion of recycled content, and the overall lifecycle carbon footprint, including production and transportation. Volvo was the first to introduce the world's first battery passport for its flagship EX90 SUV last year.
For many, the longevity of electric vehicle batteries remains a significant concern, largely due to the nascent stage of electric vehicles. However, recent research by Geotab, a leading firm in fleet and business telematics, aims to put these fears to rest. Geotab has analyzed the battery health of nearly 5,000 fleet and private electric vehicles using a staggering 1.5 million days of telematics data. The study found that EV batteries in current models degrade, on average, by 1.8% annually. This finding counters earlier research that showed battery degradation at a rate of 2.3% per year.
The report suggests that the current generation of electric vehicles will comfortably outlast their usable life, making battery replacements unnecessary. As the availability of second-hand electric vehicles grows, transparency and confidence in their condition could help drive their popularity further. It looks like the future of used electric vehicles is looking brighter than ever!
- The batteries in electric vehicles, contrary to public concerns, are found to degrade at a slower rate than expected, often outlasting other components in the car.
- Polestar introduced battery state of health certificates for their resold electric vehicles, aiming to build trust among potential buyers.
- The battery certificates offer a detailed assessment of the battery's condition, including its usable capacity, to provide customers with transparency.
- Despite the measures Polestar has taken, fears about the high costs associated with battery replacements still play a significant role in hindering second-hand electric car purchases.
- This trend in second-hand electric car prices might change with the introduction of the battery certificates, as Polestar offers low-interest rates and a free home charger as incentives.
- The study conducted by Geotab revealed that current models of electric vehicles degrade by an average of 1.8% annually, which is lower than earlier predictions, suggesting that battery replacements may be unnecessary for the foreseeable future.
