New research finds EV prices falling while repair costs remain high

June 14, 2024
The report says that used electric vehicles are falling in value far more than conventional cars.

A new report on electric vehicle (EV) collisions from Mitchell International explores the differences between EVs and vehicles with internal combustion engines (ICE). The report indicates that there's been an increase in the frequency of EVs being deemed a total loss while used EV costs have been declining. The total loss frequency for newer vehicles with internal combustion engines was slightly less but remained relatively in line with EV loss rates, though they didn't share the drop in price that EVs had over the last several months. 

According to Mitchell, EV repairable claims in the first quarter of 2024 spiked 40 percent and 38 percent in the U.S. and Canada compared to the first quarter of 2023, bringing them to 2.26 percent and 3.41 percent respectively. ICE vehicles' total loss rates in the United States and Canada, on the other hand, were 9.93 percent and 7.48 percent respectively, which makes for a 30 percent increase from the third quarter of 2023 and an 8 percent increase from the fourth quarter of 2023.

The report notes that the data indicates that EVs were not declared total losses more than vehicles with an internal combustion engine. The total loss frequency for 2021 and newer ICE vehicles was similar to that of EVs, reaching 9.51 percent in the United States and 7.44 percent in Canada.

Where EVs and ICE vehicles differ, the report says, is in their costs. Used EVs have had their prices drop by 30 percent year over year compared to used ICE vehicles' decline of 3.6 percent. Repair and claims costs have yet to equalize either, with EVs in the United States having an average severity of $6,066 compared to ICE vehicles' average of $4,703. Canadian claim severity was similar, amounting to a 30 percent higher severity for EVs. 

 

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