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Revolutionizing Pre-Owned EV Market Confidence

Revolutionizing Pre-Owned EV Market Confidence

Revolutionized EV

First Reported on: reuters.com

Validating ev battery health

A growing competition is underway to validate the health and performance of batteries in pre-owned electric vehicles (EVs) as startups aim to assist buyers in determining the genuine worth of these secondhand vehicles. In contrast to traditional combustion-engine automobiles, the value of EVs primarily relies on the driving range and charging capacity of their batteries. Until recently, battery health was difficult to measure, which stifled the used EV market. However, companies like the UK-based Altelium are now developing tests and certifications for the state-of-health of EV batteries. These innovative tests and certifications help potential buyers make informed decisions and alleviate concerns about purchasing a used EV. As a result, the pre-owned EV market is expected to experience significant growth, allowing more people to adopt environmentally-friendly transportation at a lower cost.

Altelium’s battery tests

This year, Altelium’s test will be introduced in over 7,000 car dealerships in the US and above 5,000 in the UK, through dealer service providers such as Assurant and GardX. Since a battery usually represents around 40% of a new EV’s price, its maintenance is crucial. Quick charging an EV, consistently recharging it when the battery is almost full, or keeping it fully charged for long periods can cause faster battery deterioration. Therefore, proper care and maintenance of the battery can significantly extend its lifespan and maintain the vehicle’s resale value. By utilizing Altelium’s battery test, dealerships can better educate customers on proper charging habits and offer tailored solutions to prevent premature battery degradation.

Aviloo’s battery health test

Austrian startup Aviloo has designed a test for both dealers and private individuals and found that after 100,000 kilometers (62,140 miles), the health of an EV battery can differ by up to 30%. As a result, a buyer looking for a used EV with 90% of its initial range might end up with one that only has 70% capacity due to the previous owner’s suboptimal charging habits. In an effort to prevent such discrepancies, Aviloo’s testing system evaluates an electric vehicle’s battery health by examining factors like charging history and usage patterns. This allows potential buyers to have a more accurate understanding of a used EV’s battery life and make more informed decisions during the purchasing process.

Impact on the EV market

This lack of transparency has had a negative impact on the EV market. EV battery tracking startup Recurrent reported that US used EV prices dropped 32% year-on-year in September, in comparison to a 7% decline for fossil-fuel models. Meanwhile, in the UK, AutoTrader revealed that used EV prices decreased 23% year-on-year in August while fossil-fuel model prices grew by at least 4%. These significant price reductions for used EVs can be attributed in part to the lack of clarity in battery life and performance, making consumers apprehensive about investing in pre-owned electric vehicles. In contrast, the more established data on the performance and longevity of fossil-fuel vehicles gives consumers the confidence to invest in used models, thereby sustaining their resale value.

Driverama and Aviloo partnership

Driverama, an EV-focused division of Aures Holdings, buys around 100,000 pre-owned vehicles in Germany each year for sale throughout central Europe, and utilizes Aviloo to filter out EVs with less than 80% battery capacity or battery flaws, as stated by CEO Eldar Vagabov. The partnership between Driverama and Aviloo aims to ensure the quality and longevity of the electric vehicles being offered to customers in the central European market. By implementing Aviloo’s battery assessment technology, Driverama can confidently provide its clients with reliable and efficient pre-owned EVs, contributing to the wider adoption of sustainable transportation options in the region.

Growing demand for accurate EV valuation

The necessity for accurately valuing used EVs is growing, with an impending surge of vehicles expected to hit the market. For instance, over 200,000 electric vehicle leases in Europe are due to expire in the coming years.This influx of used electric vehicles presents both a challenge and an opportunity for automakers, dealers, and consumers alike. Establishing fair and accurate pricing for these pre-owned EVs will be crucial in ensuring the continued growth and public acceptance of electric mobility.

Frequently Asked Questions (FAQ)

What is the importance of validating battery health in pre-owned electric vehicles?

Validating the battery health is crucial for determining the worth of used EVs, as their value primarily relies on driving range and charging capacity. With the development of reliable tests and certifications – like those by Altelium and Aviloo – potential buyers can make informed decisions, alleviating concerns about purchasing used EVs and contributing to market growth.

How does Altelium’s battery test work and who can benefit from it?

Altelium’s battery test will be utilized by car dealerships across the US and the UK. By performing this test, dealerships can better educate customers on proper charging habits and offer tailored solutions to prevent premature battery degradation.

What makes Aviloo’s battery health test different?

Aviloo’s testing system evaluates a used EV’s battery health by examining factors like charging history and usage patterns. This allows potential buyers to have a more accurate understanding of the battery life and make more informed decisions during the purchasing process. Aviloo’s tests cater to both dealers and private individuals.

How has the lack of battery life transparency impacted the EV market?

The lack of transparency regarding EV battery life and performance has led to significant price reductions for used EVs, with consumers being apprehensive about investing in pre-owned vehicles. In contrast, the established data on fossil-fuel vehicles’ performance and longevity gives consumers confidence to invest in used models, sustaining their resale value.

What is the partnership between Driverama and Aviloo focused on?

The partnership aims to ensure the quality and longevity of electric vehicles offered in the central European market by utilizing Aviloo’s battery assessment technology. This allows Driverama to confidently provide its clients with reliable and efficient pre-owned EVs, contributing to the wider adoption of sustainable transportation options in the region.

Why is there a growing demand for accurate EV valuation?

With a surge of used EVs expected to enter the market, accurately valuing these vehicles is crucial for ensuring continued growth and public acceptance of electric mobility. Fair and accurate pricing for pre-owned EVs enables automakers, dealers, and consumers to make informed decisions and supports the transition to sustainable transportation options.

Featured Image Credit: Photo by Pixabay; Pexels; Thank you!

Lila Anderson

Lila is a skilled SaaS writer who combines her love for technology and storytelling to create compelling content. With her words, she navigates the complex world of software-as-a-service, making it accessible and engaging for readers. Fun fact: Lila owns a hot air balloon company.
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