Black Book introduces ‘industry’s first’ battery-adjusted EV valuations
Black Book has taken a big step toward helping the auto industry navigate an electric future.
The provider of vehicle valuations and industry analytics introduced Battery Adjusted Values, which it says are the industry’s first electric vehicle valuations. The valuations incorporate battery condition adjustments based on data from Recurrent, a provider of EV analytics.
Using vehicle-specific information and battery data from thousands of similar vehicles in Recurrent’s database to evaluate a vehicle’s battery condition, Battery Adjusted Values applies an additional increase or decrease to Black Book’s VIN-specific valuations.
Black Book called the new valuations “an important milestone” as current used EV values are shaped by criteria from the combustion engine era, prioritizing metrics such as odometer readings that are easily accessible but don’t directly reflect battery aging and operating conditions.
The company pointed out that the battery is the most expensive part of an EV and its condition determines the vehicle’s maximum range. EV battery capacity degrades over time, but the rate can vary widely based on battery chemistry, manufacturing processes and how each vehicle was charged and cared for after its initial purchase.
That critical information about battery condition has not previously been accounted for in used EV values, Black Book said.
“While electric vehicles are still vehicles, a single component – the battery – has never played such a significant role in a used vehicle’s value,” Black Book president Jared Kalfus said in a news release. “Recurrent has the most comprehensive and actionable EV data available, and we’re excited to be able to translate its battery ratings into value adjustments for our customers.
“It is the next logical step in our ongoing mission of VIN-specific precision.”
Battery Adjusted Values will first be available in Black Book’s Cherry mobile app in late January. They will then be rolled out to the entire Black Book portfolio to provide access to all Black Book customers.
“EV batteries are holding up much better than many people expected, but the industry is realizing that the battery condition and resulting expected range are critical variables,” Recurrent CEO Scott Case said. “Buying, selling, leasing, owning or covering an EV without considering the battery is like valuing a combustion engine vehicle without knowing the odometer.”
Black Book said early analysis shows battery transparency increases the average value of used cars, which it said might not be surprising since 94% of EVs evaluated by Recurrent have a Range Score of 90 or above.