Used EV Prices Will Drop 30 Percent in 2013
According to a recent survey by the National Automobile Dealers Association’s Used Car Guide, the average value for a used plug-in electric vehicle is expected to drop 30 percent this year. Values for the 2011 Chevrolet Volt, with a price of $40,000 have dropped 49 percent to around $21,235, while the Nissan Leaf’s value has been cut in half to $14,792.
Over the next few years, depreciation values for plug-in vehicles will start to climb back. From a manufacturer’s standpoint, most electric vehicles haven’t met sales expectations, with many startup EV automakers declaring bankruptcy or have stopped production.
“The steep rate of depreciation for used plug-in electric vehicles can be attributed to limited range, manufacturer incentives and federal tax credits intended to offset the higher prices of new plug-in electric vehicles. Generous tax credits can certainly promote more new sales than would have been achieved otherwise, but they also have a negative impact on future resale values for one basic reason–few consumers are willing to purchase a credit-ineligible, used plug-in electric vehicle for more than they would pay for a new one, less the federal tax credit,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide.
Honda Motor Co. announced last month that it will be reducing the lease price of its Fit EV from $369 to $259 a month on current and new leases, as well as grant unlimited mileage. Honda Fit dealers will also expand from 36 to 200 in select states by the end of the month. Other automakers like Chevrolet and Ford have reduced lease prices as well in an attempt to boost sales numbers on electric vehicles.
Source: Detroit News
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