If you’re in the market for an electric-hybrid vehicle, now is the time to hit your local dealer because the prices of these cars are nearing a rock bottom. The Wall Street Journal invites us to explore why these hot commodities three years ago are now holding minimum value in the marketplace.
The current system simply doesn’t encourage the sale of a pre-owned electric vehicle, first and foremost. The $7,500 government tax credit on a new model entices buyers to purchase or lease a new vehicle. In the eyes of consumers, new is always better than “pre-owned.” The report cites worries of long-term maintenance costs too, as the Chevrolet Volt steps out of its warranty, and things like expensive batteries must be replaced.
Not only do repairs have consumers backing off the idea of owning a used Volt, or another electric vehicle offering, but gas is also significantly cheaper than when these models hit dealers. From only four years ago, the price of gas has fallen 33 percent from a national average of $3.51 per gallon to $2.34 per gallon, according to AAA.
Now, dealers are unsure what they’re going to do with the surplus of used Volts and Leafs being turned in. 49 percent of Volts registered in 2014 were leases. For the Nissan Leaf? 85 percent. NADA is estimating 25,000 Chevrolet Volts and Nissan Leafs (Leaves?) will enter the used car market this year and data shows a $4,000 to $6,000 drop from what the cars were estimated to be valued at.
Don’t be surprised to see Chevrolet Volts with sub-$20,000 price tags is the take away from all of this.
Of course, the problem may be further accentuated with the introduction of the 2016 Chevrolet Volt. Any serious buyer will most certainly wait for newly designed Volt, or even hold out for the Chevrolet Bolt, which GM has committed to building. For now, only time will tell, and many other factors such as gas prices may turn used electric vehicles into a hot-ticket item once again.
Comments
This is to be expected.
Here is the simple deal, The fact is cars like this are going to be like an I phone.
You have two factors here first the battery is going to be degraded from new as every charge cuts the number of charges still left in the battery. The battery loses just a little bit in every charge and it is something buyers will consider if they know much about batteries. Here it is like an older cell phone and the batter may just have lost a little edge or life.
Second issue is if there is a new model coming like we have now with more range and technology buyers in this segment generally always go for the latest and greatest model. Sure a hand full go for the free I phone 5 but most go for the I phone 6.
Obsolescence will be a problem going for ward for all these tech cars. Just the nature of electronics and with this segment.
Some folks will have to be creative or we will get some good buys on these in the used segment.
With regards to battery deterioration, there is a big difference between a used Nissan Leaf and a used Chevrolet Volt.
It’s true that lithium ion batteries exhibit battery deterioration — especially when fully discharged — the Chevrolet Volt was designed to minimize this.
One of the reasons that the Volt’s EV range is so low is that it is range limited — essentially, when the battery gets to at about 50% capacity, the auxiliary gas engine kicks in. This is to avoid the battery deterioration that many were initially worried about.
Buying a used Volt isn’t as risky as you make it out to be.
It is if you are the northeast with consistent sub 0 temps.
No Elroy-
The GM Voltec System in the Chevy Volt Extended Range Electric Vehicle does NOT kick in the 55,000 wHt MGa (Generaor) powered by the 1.4L naturally asirated EcoTec gas engine until the Volts Traction Battery reaches a fuzzy 20% lower state of charge. At that point the Genset produces onboard generated electricity for power on demand fueled off a 9.3 gallon gas tank.
When driving from LA to NYC simply refuel with gasoline like any other gas car on a cross country road trip, endless range.
The Chevrolet Volt EREV Traction Battery reads full at a fuzzy 80%, again, depleated at a fuzzy 20%. This is to minimise the long term chance of overcharging and like wise over discharging as mentioned above.
Enough confidence exhists in the Voltec platforms; Chevy Volt, Opel/Vauxhall Ampera EREV, Holden Volt Long Range Electric Vehicle and the Stunning Cadillac ELR Extended Range Electric Luxury Coupe that the state Of California and other ZEV states where the Voltec Platform Vehicle is sold, they are sold with a 10 Year/150,000 mile warranty on the Voltec Drivetrain!
With clost to 100,000 GM Voltec Platforms built and sold Worldwide this has been a rousing success for a First Gen disruptive platform.
Best-
Thomas J. Thias
517-749-0532
https://twitter.com/AmazingChevVolt
This has not been my experience at all with my 2011 Volt. The car and battery still perform like new after 4 years and 100k miles. Unlike the leaf, the volt has an active battery coolant system and the software never, never lets the battery fully uncharge or fully charge. I’llbe keeping my volt 10 years and expect the battery to perform very well. And at the end of the 10 years my gas engine will most likely have less than 65k miles on it. Just under 30k right now.
I am sure many will have great battery life but the fact is not all are alike. Other factors come into play etc. Also there is that fear factor that is often unfounded but will be there.
The main issue will be that newer and better models will always be coming and most people in this segment will seek the latest and greatest. Right now the worst enemy the present Volt has is the next one.
Have you taken a look at the new technology in every new car. You wrongly single out EV’s when in fact the same is true for any new car. Next years model always has something new and better.
I sort of agree about the batteries but all the manufactures have a very good warranty on the battery, either 8 years or 10 years. in a few more years the battery life fear will be proven wrong. About the only thing similar to a cell phone battery is the lithium used.
Well it is just now becoming a factor in the regular cars. The fact is the EV cars and Volt attract more tech type owners and most like cell phones and computers have to have the latest. Now with the 4G in the new cars we will see this take off even more with younger buyers but this wave is just starting.
As for the batteries I agree that most should not worry if it has a good warranty but anyone who has had a cell phone failure, lap top failure or even a cordless drill failure will think about it and not always wisely. You have to remember these will be the same people who often buy a extended warranty because uncle Joe know someone who had a brother who knew another guy who used his extended warranty and came out ahead.
Most people never do the math on extended warranties and find that few ever pay off to the dollar value paid. And if they do pay off it may be the 2nd or 3rd one the guy bought so he is not ahead. House wins on these and that is why MFG sell them. That and the fact most people keep little in their bank accounts and use this to finance it with the purchase of the car.
The real killer I see is if there is any great jumps in battery tech or range. If the Bolt goes to 200 miles and the next EV goes to 300 few will turn back to the old one unless it is really cheap and clean.
As for battery life GM did design in some safe guards to keep the people from running it down all the way like my wife does on her phone. I keep mine up and she drains hers and normally kills the batteries life where mine continues to go on and on. How you use it and treat it can determine life span. GM did try to cover that.
I have a Volt. Bought new last year for an effective price of $24 k. I think that was a deal.
If you, like me, like to keep the cars for a long time, getting a used Volt as a daily driver is a great deal. Here is why: after having the Volt for 6 months, I believe the Volt powertrain will probably last 20 years in near-mint condition.
1 – The internal combustion engine (ICE) is only a generator, generally being operated in its “sweet spot.” So, unlikely to break as much as an ICE in a regular car.
2 – The ICE is mostly used for non-electric miles. Depending on usage, and considering (1) above, the engine will get very light use compared to an ICE in a regular car.
3 – No transmission.
4 – Electric motors are very reliable and durable.
5 – Assuming the battery will last 10 years (which is a very safe bet since the warranty is 8 years, and a guy who already put 200,00 miles on his Volt does not report any degradation), replacing the battery at year 10 will get you a fresh one that will get you going for that second decade. It will probably cost a few thousand dollars, but note, you will never blow your transmission and may never blow the ICE (see 1-3 above), so for a 20 year period, it is almost a wash.
Bonus – When it is time to replace the battery, you will probably be able to get one with more range than what the gen 1 Volt offers. Don’t believe me? The new Volt’s battery is similar in shape and size than the one in the gen 1 Volt. So, it should be possible TODAY to replace a gen 1 Volt battery with the gen 2 battery (software update probably needed) to get more range in the gen 1 Volt. I wouldn’t be surprised if in 10 years you could get a 60 miles battery, making the car even better at year 10 than it is right now.
Buying a Volt now is the best investment any driver can do. The Volt mostly drives in electric mode (GM has proven that the average is over 65%), so the rang extender engine runs much less than an equivalent gas car. And electric motors last many years (I have an electric hand saw that my Dad used since 1963), so a Volt can last over thirty years. The Volt will be worth more after thirty years than an equivalent gas model only ten years old. Then add the savings in gas and engine maintenance over that same period!
We are leasing a 2014 Volt and it has been in the shop with charging and cooling issues 3 times
The car has done ~7k miles and the still has ~70% oil life after 8 months so our first oil change will likely occur after two years of ownership
The regen is so effective there is hardly any heat to be felt on the rotors when I arrive home
With 3 cooling systems, the Volt has extra complexity and there seems to be very little do it yourself advice online so I wonder what repair costs will total with high mileage (200k mile+) volts.
Low fuel price definitely makes my “no-brainer” lease less than the sweet it was when fuel was ~$4/gallon
My electricity cost ~ 19cents per kWh so my electricity cost is about $1.90 per gallon equivalent
We are leasing a 2014 Volt and it has been in the shop with charging and cooling issues 3 times
The car has done ~7k miles and the still has ~70% oil life after 8 months so our first oil change will likely occur after two years of ownership
The regen is so effective there is hardly any heat to be felt on the rotors when I arrive home
Low fuel price definitely makes my “no-brainer” lease less than the sweet it was when fuel was ~$4/gallon
My electricity cost ~ 19cents per kWh so my electricity cost is about $1.90 per gallon equivalent
With 3 cooling systems, the Volt has extra complexity and there seems to be very little do it yourself advice online so I wonder what repair costs will total with high mileage (200k mile+) volts I would want to have a sense of the costs of owning an older volt before investing in technology that is rapidly changing
You’ll get my Volt when you pry it from my cold, dead hands.