On January 23, Black Book introduced the industry’s first electric vehicle (EV) valuations under Battery Adjusted Values. These values include battery modifications based on information from Recurrent, a leading authority in EV analytics.
Battery Adjusted Values will apply an additional increase or decrease to Black Book’s industry-leading, VIN-specific valuations using battery condition. This information is determined using vehicle-specific information and battery data from thousands of comparable vehicles from Recurrent’s database.
This is a significant advancement as the values of used EVs have traditionally been determined by standards from the era of combustion engines. These standards often favor easily available measures like odometer readings that do not accurately represent battery deterioration.
The company has highlighted that the battery’s condition, which is the most expensive component, determines the full range of an electric vehicle (EV). Moreover, an EV battery experiences a reduction in its capacity over time. The rate of decline may vary, depending on factors such as the battery’s chemistry, manufacturing process, and usage and maintenance of the vehicle after purchase.
According to a press statement from Black Book president Jared Kalfus, “EVs are still vehicles, but a single component – the battery – has never played such a significant role in a used vehicle’s value. With Recurrent’s battery ratings, we can convert them into value modifications for our consumers.” He continued, “Recurrent provides the most complete and valuable EV data out there.”
From late January, Cherry, one of the top desktop and mobile applications in the market, will provide Battery Adjusted Values to all clients of Black Book. Furthermore, Black Book will soon roll out these values across its entire portfolio. This means dealerships can utilize battery adjustments to appraise used cars during the acquisition process, which can help buying teams make competitive offers on used electric vehicles and retailers set reasonable prices.
By combining battery adjustments with battery condition data from Recurrent, auctioneers and remarketers can establish reserve prices to enhance transparency. Additionally, using battery modifications, lenders, insurers, and extended warranty providers may precisely model the underlying asset value and probably the resale value of the EVs in their portfolio.
When examining the variations in battery quality and value over time, OEMs and leasing firms can utilize this data to determine the residual values of their leases. Commercial fleets can precisely set prices for remarketed electric vehicles and identify the best time to sell.