Black Book introduced its electric vehicle (EV) valuations, dubbed Battery Adjusted Values, which incorporate battery condition adjustments based on data from Recurrent, an EV analytics platform. Using battery conditions derived from vehicle-specific information and battery data from thousands of similar vehicles from Recurrent’s database, Black Book said its Battery Adjusted Values will apply an additional increase or decrease to Black Book’s VIN-specific valuations.
The battery is the most expensive part of an EV and its condition impacts the maximum vehicle range, Black Book said. Over time, all EV batteries degrade naturally in their capacity, though the rate varies widely based on battery chemistry, manufacturing processes and how each vehicle was charged and cared for after its initial purchase.
“While electric vehicles are still vehicles, a single component – the battery – has never played such a significant role in a used vehicle’s value,” Jared Kalfus, president of Black Book said. “Recurrent is the next, logical step in our ongoing mission of VIN-specific precision.”
Battery Adjusted Values will first be available in Cherry, an industry mobile and desktop application, in late January, and will soon be rolled out across the entire Black Book portfolio, providing access to all Black Book customers.
According to Black Book:
- Dealership groups can use battery adjustments when appraising during used car acquisition;
- Auctions and marketers can set reserve prices and combine battery adjustments with Recurrent’s battery condition reports;
- Lenders, insurance companies and extended warranty providers can use battery adjustments to accurately model their portfolio EVs’ underlying asset value and likely resale value;
- OEMs and leasing companies can use this information for setting residual values of leases, by analyzing the change in battery condition and value over time;
- Commercial fleets can determine the optimal resale time and accurately set prices on remarketed EVs.
Black Book said early analysis shows that battery transparency increases the average value of used cars.