Fact-based valuation of electric cars raises mobility sector’s profitability

The traction battery is not only the most important, but also by far the most valuable component of a Battery Electric Vehicle (BEV): it represents up to 50 percent of a BEV’s value – and therefore also of its residual value. And yet it is precisely this main component that has long been the big unknown in the valuation of pre-owned cars. That’s why many vehicle assessors base their valuation on the battery’s worst-case condition. As a result, the residual value for tax purposes can often fall below the actual value of the vehicle – even with a compact car, studies showed a loss of about 500 euros after three years.

An unsatisfactory state of affairs. A vehicle’s age and mileage provide only rough indications for a valuation. The actual battery condition depends on many factors, including the type and number of charge cycles, for example, and the current levels applied during them, along with charging duration, charge level while not in use, and the usage profile and individual driving style.

We offer the first reliable test of battery condition for workshop use

As the market penetration of the BEV increases, especially in commercial fleets, so too is there an increasing demand for a solution that tracks the aging process of the traction battery and permits a reliable determination of an electric vehicle’s residual value.

Battery Quick Check GmbH is now developing this service for the entire mobility sector: Battery Quick Check. It applies technology from our joint venture partner TWAICE, which specializes in the analysis and simulation of aging processes in lithium-ion batteries.

During a short stop in the workshop, Battery Quick Check determines the actual SoH value of the traction battery, irrespective of the vehicle manufacturer. That value represents the State of Health (SoH), the true battery condition. The battery report based on that value forms the core product of Battery Quick Check GmbH. It is certified by TÜV Rheinland and that means it is extremely trustworthy.

Along with the SoH value, the battery report also includes other battery and vehicle parameters, such as battery temperature or mileage, which describe when the battery check occurred and under which conditions.

The service is scheduled for roll-out in the third quarter of 2022 as an offering for commercial customers.

Optimize residual values and resale options with Battery Quick Check

If you conduct the Battery Quick Check in the course of a valuation, TÜV Rheinland damage and value assessment’s experienced appraisers can use it for the valuation of the complete vehicle.

Your benefits with our Battery Quick Check plus vehicle valuation:

• The service forms the mainstay of a valid, individual appraisal of your BEVs.
• You obtain a fact-based determination of a BEV’s residual value – not the “worst-case residual value” as has been common until now.
• The service stabilizes the market for pre-owned BEVs and increases the buyers’ trust and therefore their willingness to pay.
• When retiring BEVs from fleet service, it expands their resale options and increases margins.
• Our service can potentially support BEV management in your fleet; for example, you can use the SoH to deploy your vehicles in a way that maximizes residual value at the end of their useful life.