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Reliable residual forecasting for electric vehicles impossible says CAP

Uncertainty over the performance of electric vehicles means reliable future residual value forecasting is currently impossible, CAP has said.

According to the CAP, one of the major issues is that battery replacement costs threaten to render commercial electric vehicles in particular worthless after warranties expire.

“One of the problems of this sector at the moment is the diversity of approaches being taken by manufacturers,” said Mike Hind, CAP communications manager.

“There is still very little confirmed information from manufacturers around crucial questions such as battery finance options, battery life, anticipated replacement costs, charging systems and overall running costs.

“This means we are unable to realistically offer a view on future residual values and only when those questions are answered will we be able to do so.

“For example, with some battery replacement costs mooted to approach the £10,000 mark it currently seems unlikely that a high mileage commercial vehicle in particular approaching the end of its warranty period will have any residual value at all.

“We are speaking to all manufacturers involved so we can definitively address these questions as soon as possible."

CAP is now investigating the electric vehicle sector to determine the current facts and understand the future intentions of manufacturers bringing all-electric offerings to market.

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