Black Book, a provider of vehicle valuations and industry analysis, is introducing Battery Adjusted Values, the industry’s first valuations specifically designed for electric vehicles. These valuations take into account battery condition adjustments based on data from Recurrent, a provider of electric vehicle analytics.
By utilizing specific vehicle information and battery data from thousands of similar vehicles in Recurrent’s database, Battery Adjusted Values incorporate additional increases or decreases to VIN-specific Black Book valuations.
Black Book referred to these new valuations as a “significant milestone” because the current values of used electric vehicles are shaped by criteria from the era of internal combustion engines, which focus on easily accessible measurements such as mileage readings that do not directly reflect battery aging and condition.
The company emphasized that the battery is the most expensive component of an electric vehicle and its condition determines the vehicle’s maximum range. The capacity of an EV battery diminishes over time, but the rate of this process can vary depending on battery chemistry, manufacturing processes, and how the vehicle has been charged and used since purchase.
Previously, battery condition information was not taken into account in valuing used electric vehicles, according to Black Book.
“While electric vehicles are still vehicles, one component – the battery – has never played such a crucial role in the value of a used vehicle before,” said Jared Kalfus, President of Black Book, in a press statement. “Recurrent has the most comprehensive and valuable data on electric vehicles, and we are thrilled to be able to transform their battery assessments into value adjustments for our customers. This is another logical step in our mission of precise valuations based on VIN.”
Battery Adjusted Values will initially be available in Black Book’s Cherry mobile application by the end of January, and will later be incorporated into the full range of Black Book products to provide access to all customers.
“Electric vehicle batteries hold up much better than many people expected, but the industry recognizes that battery condition and expected range are crucial variables,” said Scott Case, CEO of Recurrent. “Buying, selling, leasing, owning, or insuring an electric vehicle without considering the battery is like valuing an internal combustion engine vehicle without knowing the mileage.”
Black Book stated that preliminary analysis shows that increased transparency regarding battery condition enhances the average value of used electric vehicles, which is not surprising given that 94% of electric vehicles assessed by Recurrent have a Range Score of 90 or higher.
Source: https://www.autonews.com/
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