Battery Anxiety: How EV Testing Is Crashing Used Tesla Values at Auto Auctions

Episode Description 

Mannheim Auto Auctions, the largest automobile auction chain in the U.S., is revolutionizing the used EV market with comprehensive battery health reports. Discover how this $100 million investment is addressing dealer concerns and reshaping electric vehicle values at wholesale auctions. 

Key Points Covered: 

• Mannheim's Major Investment - The largest U.S. auto auction chain is investing $100 million in EV infrastructure, processes, and equipment to handle the growing electric vehicle market
• New Battery Health Reports - Dealers now receive comprehensive battery condition reports alongside traditional vehicle assessments to reduce purchase uncertainty
• Addressing Battery Anxiety - President Grace Hong explains how battery costs represent the most expensive EV component, creating bidder hesitation that these reports aim to eliminate
• Technician Training Program - Mannheim is training technicians specifically on EV battery processing and handling due to the new technology requirements
• Five-Point Battery Rating System - Each battery receives a 1-5 rating based on comprehensive testing criteria
• Detailed Testing Factors - Reports measure energy input/output efficiency, charging and discharging speeds, and current range compared to original specifications
• Warranty Assessment - Evaluates remaining battery warranty coverage and determines specific battery technology type
• Phased Rollout Strategy - Initially launching at facilities with highest EV volumes, then expanding to other locations as electric vehicle inventory increases
• Market Recognition - The wholesale auto industry's largest player acknowledges the critical importance of battery health transparency for accurate vehicle valuations
• Informed Purchasing Decisions - Buyers can now make data-driven purchasing choices based on actual battery condition and remaining useful life

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Mannheim Auto Auctions is the largest chain of automobile auctions in the U.S., mainly catering to dealerships. It's a dealer only auction in most cases and they've added a new feature to their auctions: EV battery health report so that when the dealer purchases a vehicle they can be reassured that the vehicle has a good battery. They're investing 100 million in infrastructure processes and equipment to handle electric vehicles. The investment includes tools to create health reports provided to bidders along with traditional vehicle condition.

Their president Grace Hong says batteries are the single most costly part of EVs and when it comes to bidding on that some people are experiencing battery anxiety. Offering these condition reports takes away some of that anxiety. They're training our technicians how to process and handle EV batteries because it's you know new technology and they rate the rate from one to five. They look at these following factors: the factors are the measurement of the energy going in and out of the vehicle, how fast it's charging and discharging, comparing the current range when it was new, whether the battery has a warranty and how much is left, and then what type of battery it is.

The health reports will be at its auction facilities with the highest EV volumes and then eventually roll out to other places as more EVs come. We must rethink how to handle that so the largest dealer wholesale auto auction in the country is recognizing how important it is to measure EV battery health and to make sure that that information is passed along to buyers so they can make a correct purchasing decision based on the value of the vehicle as dictated by its condition and how much battery life is left.