Why your opinion of used electric vehicles is probably wrong
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In a famous apocryphal story, Henry Ford insisted that it was economically unnecessary for an automobile component to consistently outlast the car itself. There are even stories of him sending employees to auto junkyards to identify components of troubling durability, so he could ensure they would be built from cheaper materials in the future.
Turn that philosophy toward electric vehicles, and there’s already a widespread perception that batteries age poorly, so you’re better off buying new ones. This contributes to the faster depreciation in value observed for electric vehicles compared to gasoline or diesel vehicles. Batteries are 99% cheaper to build than they were 30 years ago, but they still represent about a third of the price of a new electric vehicle.
So it’s good news that from this month the average new electric vehicle on sale in the UK will be cheaper than the average new petrol car. But novelty isn’t everything. In a twist that might displease Henry Ford, a recent report reveals that well-treated electric vehicle batteries are expected to last longer than the cars themselves, suggesting that used electric vehicles are a much better deal than it might first appear.
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The average new electric vehicle on sale in the UK is cheaper than the average new petrol car
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These are not the only reasons why electric vehicles, new and old, are becoming more commercially attractive. Most electric vehicles are parked and plugged in for nearly 23 hours each day. Plans are now in place to use the batteries in these cars to temporarily store excess electricity flowing around the power grid, with network operators then paying electric vehicle owners when they need it. This idea is not new, but, as we report here, a trial project in the United States now gives us an idea of its cost-effectiveness. The average driver of an electric vehicle could earn several thousand euros each year.
It is undoubtedly these types of economic calculations, rather than the notion of combating climate change, which will contribute the most to accelerating the green transition. Meanwhile, Iran’s war-related fuel crisis could also encourage the adoption of electric vehicles by making fuel-powered cars more expensive to operate.
Although the electric vehicle industry has recently faced slowing sales growth, it’s entirely possible that the path forward is a little clearer.
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