How to Calculate EV Residual Values

Nov. 4, 2021

A report by Fleet Forward has put together a list of factors that it says will impact residual values for electric vehicles (EV). Acknowledging that data on electric cars are scant, the report compares EV residual value after three years to that of a sedan powered by an internal combustion engine (ICE).

According to the report, the average ICE sedan depreciates about 39 percent over three years, and an EV by 52 percent.

Current factors affecting residual value for EVs include battery technology, infrastructure maturity, government policy, and model choice. All of these factors continue to evolve, adding uncertainty to how owners would calculate residual value, including a dearth of used cars.

Key to future calculations, the report suggests, is improvements in battery range and performance, expansion of the charging infrastructure, expiration of government subsidies, and more models available in the market.

Source: Fleet Forward