Uncertainty over used electric car values
22.02.2010 - Owen Ready
(49)
A statement by independent car valuation experts CAP has cast uncertainty over the potential used values of electric cars.
The electric car market is set to explode in the next year, with several major car manufacturers committed to launching battery-powered cars. Meanwhile, the Government is offering incentives of up to £5,000 to tempt buyers into electric cars.
With tax breaks, the lure of zero emissions and promises of cheap - or even free - recharging, low running costs are additional sweeteners for those looking to go electric.
However, while the initial costs may be comparable to conventional cars, replacing the latest generation of lithium-ion batteries could set you back up to £10,000. The worry is that vehicles approaching the end of their warranty may be rendered worthless when battery replacement is needed.
Another issue is the differing technologies being developed by manufacturers. From hybrid, through to hydrogen fuel cells, via battery-powered electric cars, there is uncertainty over which approach will be adopted by the industry. It's the motoring equivalent of VHS versus Betamax. A wrong move could land you with an obsolete and worthless car.
Until these issues are addressed, electric cars look set to be leased from manufacturers rather than bought outright, which should help to increase consumer confidence.
In the meantime, CAP is undertaking a major review of the electric car sector, which it is hoping will help to answer some of the uncertainties surrounding the sustainability of the market.
