Uncertainty For Second-hand Electric Vehicle Market
Announcement posted by Fleetcare 05 Jun 2023
As the EV market matures and more new brands hit Australian shores, the market for second-hand models remains uncertain.
When Fleetcare surveyed 10,000 customers to ask them if they would consider buying a five-year-old electric vehicle the answer from respondents was a resounding ‘No’, with 74% against buying a second-hand EV of that age.
The cost of battery replacement was the key reason, with 30% of respondents who said ‘no’ stating they would not consider a five-year-old EV because of the potential hidden cost of replacing the battery. The average battery is between 450-900 kg and can cost upward of $10,000. So, no small investment, and potentially problematic from an environmental perspective.
Less concerning to respondents was charging locations, charging times and price. That reflects the reality of today’s electric cars, with their increased range and faster charging, which in turn reduces anxieties about charging locations and times.
The knock-on impact on second-hand values of these concerns is an issue that both consumers and business customers need to consider, and until this is addressed it will continue to hold back uptake.
Nigel Malcolm, CEO of Fleetcare said “it appears to me that consumer sentiment will drive down the value of used electric vehicles if action isn’t taken around the cost and life of batteries. Furthermore, there is genuine concern around the future recycling of batteries.”
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Fleetcare is Australia’s largest independent fleet management and leasing solutions business, managing more than 42,000 assets Australia-wide. Established in 1989, Fleetcare provides comprehensive fleet management and leasing solutions for both public and private sector organisations.
Contact Information:
Fleetcare Pty Ltd
Nigel Malcolm, Chief Executive Officer
M | 0418 929 641
E | nigel.malcolm@fleetcare.com.au