Introduction

When purchasing a vehicle, we often think about more than just the initial cost. Resale value and depreciation are vital considerations. While electric vehicles (EVs) have been making waves in the automotive industry, let’s explore the factors that influence their resale value and share tips on how to get a better price while making smart choices for the environment.

Factors affecting EV resale value

• Brand reputation: Reputable manufacturers offer EV models that have been rigorously tested and designed for longevity. Choosing a trusted brand can positively influence your EV's resale value, as potential buyers are likelier to trust well-known names.
• Vehicle range: A longer electric range is generally viewed as a positive factor for resale value. Maintaining the battery health is the key to having good long range.
• Battery health and cost: Most modern EVs use lithium-ion batteries, known for their efficiency and durability. A well-preserved battery with good health and capacity retention positively impacts the vehicle's overall worth. If a battery’s ability to hold a charge reduces significantly, this can reduce the car’s range and ultimately affect its usability for long-distance driving. Usually, most batteries can retain at least 70% of their original charge for at least 8 years (or usually at least 100,000km). Mindful charging habits and regularly scheduled battery checkups can help keep the battery healthy and running long.
• Growing fast charging infrastructure: Access to reliable and extensive DC fast charging[RB1]  stations and equipment is vital for electric car owners, as it reduces "range anxiety" and makes long-distance travel more convenient. Most electric cars in India are compatible with DC fast-charging protocols like the CCS2. With the rapidly growing charging infrastructure in the country, the resale value of the electric car will be on the rise due to the convenience and peace of mind they offer to the next owner.
• Certified Pre-Owned (CPO) car program: CPO programs, offered by manufacturers or dealerships, provide buyers with the assurance of quality and reliability for used electric cars. Vehicles in a CPO program typically undergo thorough inspections, which can boost their resale value. Buyers are often willing to pay more for CPO electric cars than non-certified used EVs.

The MG reassure program for Certified Pre-Owned cars: The MG Reassure certified pre-loved car program provides an end-to-end solution to existing MG customers looking to buy pre-loved MG vehicles. The mission of this program is to give its customers an extremely delightful, transparent, and convenient buying and selling experience. The program would Reassure existing customers with a better resale value and, on the other hand, prospective buyers, a one-stop solution for their pre-loved car buying journey. All the vehicles sold under this program undergo a rigorous quality check on more than 160 points before becoming a “Certified Pre-Loved Car”. This is done to ensure the quality of the vehicles meets the brand's expectations. MG Reassure aims to provide the quickest residual value for non-accidental MG cars, refurbished with genuine MG spare parts and maintained by MG-authorised dealerships.

MG buy back program: With this plan, MG customers can receive guaranteed car resale value. The MG Comet EV gets you 60% of the original ex-showroom value, and the MG ZS EV gets you 50% of the invoice price at the end of 3 years.

1 Lower risk of depreciation: Regular maintenance of the MG EV coupled with declining battery prices will ensure a slow depreciation of your car. Therefore, a lower depreciation can lead to a higher resale value for your MG EV.

2 Ease of replacement: Under the buyback program, customers can keep, surrender, or upgrade to any other MG car, making it simple and easy to level up.

3 Financial predictability: With the buyback program, you can plan your finances accordingly to avoid a considerable dent in your finances.

• Technology upgrades: The swift progress of technology in the EV sector means that newer models come with enhanced features, an extended range, and more advanced systems. This can affect the resale value, as potential buyers lean towards the latest technology.
  
• Maintenance and service: EVs are cheaper to maintain than fuel-powered vehicles but do require regular maintenance. The residual value of a used EV is influenced by its maintenance history, and missing essential servicing schedules may result in a lower resale offer.
• Market demand: As the adoption of EVs continues to rise, so does the demand for used electric vehicles. Various incentives, including tax benefits for owning an EV and a heightened environmental consciousness, all contribute to a thriving second-hand market for EVs.

In contrast to ICEs, EVs are unique and may experience slightly different depreciation patterns initially due to low awareness and rapid technology advancements. However, as the market matures and confidence in EV technology grows, depreciation rates are expected to stabilise and potentially surpass some ICE vehicles.