(TNS) — As Ferrari pumps out its first electrified automobiles, it is offering customers a full battery replacement. The battery warranty is intended to maintain not just the car’s performance, but its resale value. The Italian automaker’s guarantee is the latest sign that electric vehicles have a growing challenge — and it’s not just cost and range anxiety relative to their gas-powered peers.
EV residual values are cratering compared to their gas-powered peers, harming resale value for owners who have otherwise enjoyed lower ownership costs due to EVs' low maintenance and refueling expenses. Experts say the reasons for EV depreciation vary from the flood of new models in the market to battery degradation after years of charging. A from found EV residuals fell 31.
8% over a year ago (a value loss of $14,418) compared to 3.6% for gas engine vehicles. Yet, while EV deprecation is sour news for owners, lower EV values — combined with higher government incentives — could open the opportunity to a wider demographic of buyers to try EVs as manufacturers try to meet government sales mandates.
“Vehicle deprecation over the initial years of ownership is the most expensive part of owning a new car,” said Karl Brauer, executive analyst at . “As more EV buyers become aware of that fact, the fewer will be interested in ownership.” Concerned over owner backlash, some luxury automakers are taking action.
To protect residual values critical to its brand’s reputation, F.