Used vehicle valuation experts, Glass’s has announced plans to revisit its residual value forecasts for the Nissan LEAF following the news that battery failure rates are much lower than many industry analysts predicted.
Five years and more than 35,000 European sales since the launch of its LEAF, the proprietary data released by Nissan showed that 99.99 percent of its battery units remain entirely fit for purpose.
According to Nissan, the failure rate of the battery power unit was less than 0.01 percent – or just three units in total – a fraction of the equivalent industry-wide figure for defects affecting traditional combustion engines.
In response, Rupert Pontin, Glass’s head of valuations, said: £This is something of a watershed moment for the electric vehicle sector, with a major car manufacturer being able to report on the long-term reliability of batteries for the first time – and the results are very, very good.
“They are good enough that, as an expert in this field, we will be looking again at our residual value forecasts for LEAF and probably revising them upwards. Long-term battery life has been a definite concern for used EV buyers but the new figures from Nissan effectively remove this worry.
“Really, Nissan has gone through a process with the LEAF similar to Toyota with the first generation Prius several years ago, where the cars had to be proven in real life conditions before used buyers could feel confident. Now, the Prius enjoys excellent residuals and the LEAF should start to find a similar level of market acceptance.”
Glass’s also announced recently that electric vehicles are closing the gap on residual values compared to their diesel equivalents, with parity expected to come with increased familiarity as the market grows.
Pontin added: “Generally, Glass’s has taken a bullish view on EV technology and we are pleased to see that our forecasts are starting to translate into strong, real world results.
“Also, Nissan are to be congratulated for their bravery in this area and the investment they have made in bringing EV technology to the mass market.”