NADA Prices of used plug-in electrics to drop 30% in 2013

NADA – Prices of used plug-in electrics to drop 30% in 2013

To meet the stringent fuel economy standards, automakers are scrambling to build and market plug-in electric vehicles (PEVs). But two years after introduction, sales of the Chevy Volt and Nissan Leaf fall short of their manufacturers goals. And how are used, previously-owned PEV values expected to hold up?

Poorly, says a new report by NADA. Last year, PEVs depreciated 31.5 percent, and they are expected to lose nearly 30 percent in value this year. Their high up-front cost and limited range limits their appeal as new vehicles, so the federal government has stepped in with a substantial tax credit. That spurred new sales but depressed values of used PEVs, which cost more than new models.

Higher gas prices would help spur EV sales, the report says, but they are not expected in the next few years. LMC Automotive forecasts that PEVs will slowly rise from 0.4 percent of new sales in 2012 to just 1.5 percent in 2020. Hybrid electrics are expected to be 6.1 percent of the market.