KBB Predicts Staggering Losses For EV Owners At Trade In Time

The year 2014 looks like it could be a very good one for plug-in vehicles, with new launches and expected sales increases heading the list of reasons to cheer.

But it wouldn't be a near year without a few doom and gloom predictions, and the latest come from Kelly Blue Book's figures for electric car residual values.

They aren't good, in short. But the figures do carry a few caveats--and it isn't as bad as things first seem.

As The Car Connection reports, KBB predicts some staggering losses for electric car owners after the first five years of ownership.

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Agent009 - 1/2/2014 12:51:18 PM

+1 Boost

This is what happens when you only look at one facet of a car purchase.

"Oh Yea, I'm gonna screw the oil companies by going to an expensive EV"

The last laugh is when you paid $10K extra to get that EV and lose $10K on the trade. The only person getting screwed was you.

atc98092 - 1/2/2014 1:08:42 PM

+2 Boost

But you're ignoring the final two paragraphs of the story:

"In the end, buying an electric car isn't something to shy away from based solely on residual value predictions.

For many buyers, the low day-to-day running costs and low environmental impact of running an EV will be more than enough to push thoughts of low resale to the back of your head."

vdiv - 1/2/2014 10:32:55 PM

+2 Boost

Who said anything about a trade? I'm driving mine into the ground. :p

MattDarringer - 1/2/2014 3:31:54 PM

+1 Boost

Buying an EV makes no sense. Leasing one MAYBE, but EVs are like phones. A five year old EV is outdated as a 5 year old phone. No one wants an iPhone3. The same will be true of EVs. Moreover, EVs are NOT as "green" as people think. EVs merely shift the pollution source from the tailpipe to the power plant and landfill where their batteries go .

aussie2u - 1/2/2014 10:27:03 PM

+2 Boost

From a political point, I get it, EV's are "bad" and will cost you more in the long run. From a technical standpoint, that's not the case.

The long term studies on Tesla batteries showed well over half their power capacity remains after 8-10 years. Figuring 15k miles per year, I'd still have at least half the range at 150k miles and almost zero maintenance and repairs up until that point. How much does it cost to just maintain the Mercedes S class, its comparison, to 150k miles? What would be the perceptual value of a 150k transmission, catalytic converter, carbon build up in intake and head, etc.?
The point is that if you judge the tesla as being "finished" when the battery is diminished to the point the car is no longer driveable, that's more than a decade and possibly two. The equal Mercedes S class will be close to that same condition unless the owner has spent untold amounts of money to maintain and repair it to that point, which must be calculated.

I'm not saying EV's are perfect, only that I assume the same argument was made when Henry Ford had to compare his new Model T to the average life span of the horse it competed with.