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Transparency in Used Electric Vehicle (EV) Sales: The Importance of Battery State of Health (SOH) Checks
The used EV market is undergoing a significant transformation, driven by the increasing registration of BEVs and PHEVs. One critical factor that is playing a pivotal role in this transformation is the Battery State of Health (SOH) checks. These assessments offer a transparent, reliable means of providing information about the remaining battery capacity and performance, addressing the concerns of both buyers and retailers.
SOH assessments help overcome the uncertainty and mitigate the risk that are common barriers in used EV transactions. By providing a quantified measurement of battery capacity relative to its original state, often expressed as a percentage, alongside other diagnostic data like charge cycles and battery management system (BMS) status, these checks enable buyers to make informed decisions and retailers to price vehicles fairly and confidently.
Improving Buyer Confidence
SOH checks provide prospective buyers with verified data about battery life and degradation, reducing the "blind bidding" problem typical of used EV auctions or private sales. Detailed reports often include percentage capacity remaining, number of full charge cycles, voltage consistency across cells, and warranty status. For instance, Pickles Auctions introduced detailed SOH certificates to replace uncertainty with transparency, showing that many used EVs still retain around 96% battery health even after extensive use.
Supporting Retailers and Dealers
Dealerships can perform battery health tests using OEM diagnostic tools or specialized equipment, generating reports that indicate total dischargeable energy in kWh and degradation percentage. Some dealers offer these checks as a value-added service, helping to justify pricing and boost trustworthiness.
Addressing Concerns About Battery Aging
SOH checks help dispel myths about battery life expectancy by providing real-world data, demonstrating that many batteries retain over 80% capacity past 100,000 miles and that mileage alone is not always a predictor of degradation.
Enhancing Market Transparency and Safety
Advanced testing methods include dynamic load tests and analysis of internal resistance, voltage stability, and thermal safety, which contribute to understanding not only capacity but performance and safety risks.
In summary, SOH checks function as a crucial verification step that benefits buyers by reducing the risk of purchasing EVs with poor battery life and retailers by promoting transparency and fairness in pricing for used EVs, thereby supporting growth and trust in the used EV market.
The lack of transparency in current used EV advertisements has been highlighted by industry experts like Roland Gagel, CARA board member. Gagel pointed out that current advertisements are not clear enough and can foster uncertainty among potential buyers. The way information about a used EV's condition is used and shared by the retailer makes a significant difference. Gagel stated that used-car offers need to become more transparent, and the clearer the information about the battery, the more likely it will be that BEVs will recover from their residual values.
As the Euro 7 regulations approach, with the real effect coming in 2029 and 2030, the emphasis on transparency and the battery passport will foster even more transparency in the SOH of EVs. Tools such as infotainment screens showing average energy consumption and onboard SOH monitors will help drivers understand more about the lifespan and health of their EV. With five years left until the regulation affects used-car sales, it is crucial for the industry to start improving the used EV sales experience and calming EV concerns to support the growth of the used EV market.
References:
[1] Lapeyre, Pierre-Amans. "The Importance of Battery Certificates in the Used EV Market." LinkedIn, 14 Oct. 2021, www.linkedin.com/pulse/importance-battery-certificates-used-ev-market-pierre-amans-lapeyre/.
[2] "How to Check the State of Health (SOH) of an Electric Vehicle Battery." Electrek, 23 Mar. 2022, electrek.co/2022/03/23/how-to-check-the-state-of-health-soh-of-an-electric-vehicle-battery/.
[3] "The Importance of Battery State of Health Certificates in Used EV Sales." Pickles Auctions, 13 Apr. 2022, picklesauctions.co.uk/news/the-importance-of-battery-state-of-health-certificates-in-used-ev-sales/.
[4] "Battery State of Health (SOH) Checks: A Comprehensive Guide." EV Volt, 10 Mar. 2022, evvolt.co.uk/battery-state-of-health-soh-checks-a-comprehensive-guide/.
- To ensure a confident and informed purchasing decision in the used electric vehicle (EV) market, many dealers now utilize SOH (Battery State of Health) checks, offering data on battery life, degradation, and performance.
- As new regulations like Euro 7 approach, there will be an increased emphasis on transparency within the used electric vehicle market, with tools like infotainment screens providing information on battery health and lifespan to promote growth and alleviate concerns.
