Research on Residual Value Evaluation of Battery Electric Vehicles Based on Replacement Cost Method

Knowledge about the value of used battery electric vehicles (BEVs) is critical for potential BEV purchasers, corporations, and governments to consider the total cost of ownership for BEVs. This study introduces a new method to evaluate the residual value of BEVs in China and provides the evaluation results. We innovatively separate the power battery from the battery electric vehicle and apply big data analysis methods to research the residual value of these two parts. We find that with the improvement of the power batteries technology, the residual rate of power batteries is higher than that of vehicles. However, whether or not to get subsidies has a great impact on the value residual rate of vehicle, we also find that at present BEVs still cannot develop independently without subsidy in China, because the low value residual rate will affect consumers’ purchase decision.