Used EV prices are finally heating up — a little

Calling a car or truck an appreciating asset is usually an oxymoron unless you're talking about collectibles such as a first-generation Ford Bronco or a third-generation Mazda RX-7.

Or a 2015 Nissan Leaf.

Indeed, the electric vehicle that has exemplified plummeting value in recent years has finally stopped its depreciation plunge. According to J.D. Power and Associates, 2015 Leaf wholesale prices are about 1 percent higher than they were a year ago. It's just 1 percent, but still.

"So from a consumer standpoint, that means they have an appreciating asset," said Larry Dixon, J.D. Power senior director of valuation services. "That's quite extraordinary."

Dixon said the Leaf's annual depreciation rate has been in the 25 to 30 percent range.

"Now we have prices up for the first time ever," he said.

2015 Nissan Leafs have retained 30 percent of the originally equipped sticker price this year, up from 23 percent last year, according to J.D. Power, which focuses on 3-year-old vehicles when calculating retention values.

Other used EVs are showing a similar trend in prices or retained value improvements, Dixon said.

Fiat 500e retention is at 21 percent in the fourth quarter, up from 18 percent a year ago; Chevrolet Spark EV value retention is 25 percent this quarter, vs. 21 percent in the fourth quarter of 2017.

The Spark EV's wholesale prices are also up 10 percent year over year. Dixon said volumes on the Ford Focus EV were too low to cite, but trends indicate that prices and retained value have firmed up for that car as well.

According to Black Book, which weighs 2016 models to gauge three-year retention, the retention value of used EVs this year is about 38 percent, vs. 21 percent a year ago.

Two main factors appear to be at play. One is the rising prices of all new and used vehicles. The other is that EV prices — especially those of the higher-volume Leaf — seem to have hit rock bottom.

"I think some of it is the prices go down so much and you get a bounce off of those," said Anil Goyal, executive vice president of operations at Black Book. "We saw that in compact cars in general as well as EVs."

EVs' price strengthening could continue for several months into 2019, at least. Goyal said wholesalers seem to have adjusted to the reality that truck-minded consumers are not snapping up EVs.

"From a remarketing standpoint, the companies have done a better job of understanding where the demand is for those EVs," he said.

A general increase in volume, which could put downward pressure on prices, is expected to be offset by growing consumer awareness of battery-powered cars and trucks.

J.D. Power's Dixon noted that EVs are well-geared toward certified-used programs, as many are leased in the first place. He said buyers who did not want to commit long term to EV technology opted for a two- or three-year commitment.

A dearth of charging infrastructure, range anxiety and a general unfamiliarity from car buyers with a newer technology have all been cited as reasons why Americans have shied away from EVs. But the used-vehicle market may signal a shift in sentiment.

"Based on what we've seen this year and starting in the latter half of last year, there's clearly some consumer demand," Dixon said.

Still, it depends on having the right EV in the proper context and in an appropriate market, he added. "I don't think you're going to have dealers … scrambling to load up on EVs."