Electric cars to hold more value after 5 years than gas, diesel models: ING
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Electric cars will do a better job of retaining value in second-hand vehicle sales when compared to motor vehicles that make use of more common combustion engines, according to a report published by economists at Dutch bank ING. "The demand for used electric cars will exceed supply, resulting in rising used car prices," the bank said, estimating that 25 percent of used cars buyers in 2025 will consider an all-electric car.
If demand for battery-powered cars outpaces supply on the used car market, the sale price of those models will rise. An all-electric vehicle purchased in 2020 is expected to retain 40 percent to 47.5 percent of its price as a new vehicle when it is resold in 2025. Petrol-fueled cars typically hold 35-42.5 percent, while diesel-engined cars retain between 27.5 and 35 percent after rolling on Dutch roadways for five years.
The falling price of batteries, a range of up to 400 kilometers, and an increase in top speed are all factors in the growing popularity of all-electric models. "Consumer research shows that electric cars with such a range will also be popular on the used car market in five years," wrote Max Erich, ING's economist focused on the automotive industry.
All-electric cars could comprise of 12.5 percent of all new car sales in the Netherlands next year. With a high retained value, and an attractive tax scheme, dealers are more likely to make the cars available to clients on a lease, the bank argued.
It said customers will continue to consider them for purchase because of their overall reliability, quiet cabins, quick acceleration, and government incentives to own one over a vehicle that runs on fossil fuels.