Battery determines the value of the electric car

Battery determines the value of the electric car

Valuing vehicles has been a core competency of Deutsche Automobil Treuhand GmbH (DAT) for more than 90 years. Based on extensive market observation and consideration of market-influencing factors, users of DAT products can carry out a market-based valuation of a vehicle at any time, be it in trade, in the event of damage or to determine the value of a fleet. With the ramp-up of electromobility, purely battery-electric automobiles (BEVs) are now increasingly coming onto the used car market. The most expensive component of these cars is usually the battery. Since its degradation reduces the ability to store energy during use (cyclical aging) and over the years of operation (calendar aging), the condition of the battery is an essential, value-determining factor.

How well a battery can store energy is expressed in the State of Health (SoH). To determine this, available parameters of the battery are read and/or a test is carried out. A number of independent companies offer various testing procedures that take from a few minutes to a few hours. In order to appropriately incorporate the actual condition of the battery into the evaluation of an electrically powered vehicle, DAT has developed the so-called EV value correction (EV=Electric Vehicle). This takes into account the SoH, the warranty conditions, the capacity of the battery, the cost of replacing the battery (consisting of spare parts costs and vehicle-specific working time costs), age, mileage and other factors. DAT implemented this calculation methodology in its SilverDAT 3 product family applications at the beginning of June 2023, thereby offering for the first time a standardized procedure for taking the actual SoH into account in professional vehicle evaluation.

From now on, the user has the opportunity to correct the value of the used car by entering a previously determined SoH in the DAT valuation system. Unlike combustion engines, where almost all components can be replaced individually and repairs can be carried out in a fair value, in many cases a battery can only be replaced completely. Only a few vehicle manufacturers currently offer a repair or replacement concept for batteries. If a battery needs to be replaced, the only option is to install a brand new battery. This can mean the total financial loss of a vehicle.