Electric cars in India may be relatively new compared to their ICE powered counterparts, but the numbers are growing at a steady pace. With this, the number of electric cars in the used car market too is growing. While the electric cars have been racing fast towards the future, their resale value is sticking to the slow lane. If one studies the market well, the findings show that the electric cars lose their value at almost twice the pace as the petrol and diesel models do. The key reason behind that is the range anxiety involving the lifespan and replacement costs of the battery.
Electric vehicles have been evolving rapidly, with more modern technology bringing more advanced and efficient performance. This evolution is is making new models promising better range than the older ones, which is making the older models age faster.
If you are planning to buy a used electric car, you must consider a few factors and find satisfactory answers for them.
Electric cars face faster depreciation. Why?
Electric cars face faster depreciation compared to their petrol and diesel counterparts. The batteries make 40-50% of the total cost of the electric cars, and the batteries lose their performance capabilities from the moment they are built and packed. Usage, and other factors may expedite the performance depreciation. However, there is no uniform way to judge the battery health for the used EVs and this where the used vehicle buyers get nervous. Without any testing metric for the battery health, the pre-owned vehicle buyers are left guessing what they are actually paying for.
Key factors to consider before buying a used electric car
If you are planning to buy a used electric car, you must consider three factors before opting for a deal, to save yourself from ending up with a flat battery, both financially and literally.
Battery warranty
The battery warranty is one of the key factors that play crucial role in defining the cost of the used electric car. Many EV manufacturers have been offering up to eight years of warranty on battery packs. But, remember that the battery warranty is applicable only for the first owner. If he or she sells the EV, the warranty gets void, which means the used EV buyer will not get the benefit of the warranty.
Battery health
Battery packs generally lose two to five per cent of its range and performance capability every year. Hence, assess the degradation of the battery when checking a used electric car, by counting from the year it was manufactured. However, this battery degradation depends on use, weather condition of the place etc., as well.
Battery rental
Many EV manufacturers in India have started offering battery-as-a-service (BaaS) for their electric cars. This allows the owners to pay the cost of the battery in a pay per kilometers driven mode. This generally reduces the risk of ending up with a flat battery, but make sure to check with the OEM of the policy will be applicable for the used EV buyer as well.