Volkswagen's diesel models have lost their value in the auction lanes at a much sharper rate than comparable gasoline models since revelations came to light that the company had included a software cheat in the vehicles to beat emissions tests.
Mainstream electric vehicles (EV) are depreciating much faster than their gas sister models, according to new data from Black Book.
While hybrid vehicle sales are increasing, the total percentage of overall sales is not. Alternative-fuel vehicles are still garnering interest, but several factors are impacting sales.
Faced with tightening corporate average fuel economy standards in the U.S., automakers have turned to a new generation of cleaner burning diesel passenger cars and SUVs to help them meet the new regulations.
Hybrids are slowly increasing in the market. Black Book projects 2013 hybrid models to retain 50.4 percent of their original equipped retail price, while 2013 equivalent gas models are projected to retain 54 percent of their original equipped retail price.
"Black Book"’s Ricky Beggs noted that electric vehicle resale values are being impacted by rapidly advancing powertrain technologies.
All good things eventually come to an end. So, too, will today’s abnormally high used-vehicle prices. Today's resale values are an anomaly caused by a decrease in used-vehicle inventory in the wholesale market, resulting from the extremely low sales of new vehicles from 2009-2011. You need to educate management that today’s resale values will decline. Otherwise, you run the risk of being management’s future scapegoat for declining resale values due to their misperceptions of the market.
TORRANCE, CA - As both electric vehicle technology and traditional gasoline powertrain technology changes, becoming more efficient every year, predicting the residual values of electric vehicles a few years from now is a challenge.