Wednesday, June 30, 2010

Hybrid Depreciation: Accelerated!

Like the hybrid idea? You better have a fat wallet.

According to a report from the UK's Glass Guide, unless manufacturers properly address customer concerns regarding battery life and performance, the new breed of electric vehicles (EV) soon to be launched will have residual values well below those of rival gasoline and diesel models, with a typical electric vehicle retaining only 10% of its value after five years of ownership, compared to gas and diesel-fueled counterparts retaining 25% of their value in that time period. According to Andy Carroll, managing director at Glass's, the alarming rate of depreciation is a function of customer recognition that the typical EV battery will have a useful life of up to eight years and will cost thousands of dollars to replace. --quoted by MoonBattery

So if you drop $40K on the cute little thing, you have only $4K left after 5 years.

With an ordinary vehicle, you have $10K left after 5 years.

But it's BammyApproved!

1 comment:

Tim Morrissey said...

I wants me one o dem hydrogen cars, me. No battry in 'em!