Second-hand EVs could ruin the used car market

Electric car at the IAA Mobility in autumn 2021 (Wey/symbolic image). © via www.imago-images.de

Software plays an essential role in electric cars. In the case of used electric models, there could be another problem in addition to the energy loss of the battery.

Munich – Electronics not only play a major role in powering modern cars. The cockpit also consists of a package of programs that are bundled and played back by a control unit like a computer. This aspect is decisive for the sales success of modern models, especially with regard to the lucrative Asian markets such as China.

This could lead to problems when reselling it as a used car, explains Business Insider. Due to the enormous importance of software in the vehicle – which will probably be further advanced by autonomous driving in the future – there could be difficulties due to a lack of updates. As an example, something we are already confronted with today: In the case of smartphones, the use becomes problematic after years, because manufacturers often no longer offer software updates for older models. Is there a threat of the same problem with used electric cars? The useful life of cars is usually much longer than that of smartphones, where various apps can no longer be used at some point.

Used electric cars: Is there a risk of system crashes like smartphones?

While a system crash is not a rare phenomenon on older phones, it would be a massive security issue for vehicles. However, support and maintenance of outdated systems are expensive and time-consuming, the portal describes. This makes it difficult for car manufacturers and software developers alike to keep different programs compatible with each other. For the used car market – where by far the most car purchases take place – this would have serious consequences.

So how long will buyers of older electric models receive updates for the software functions of their electric vehicle? If, for example, an assistance system is no longer compatible with the electronic steering, this sounds like a safety risk. This could be a general problem: the powertrain and cockpit function are separate areas of the vehicle. Models with combustion engines also have complex operating systems on board, for which long-term updates are in the pipeline. This is a problem that the industry should solve in the interests of consumers.

Extending the life of electric cars could cost a lot of money

According to Business Insider, at least VW has already communicated that it wants to provide the systems in the cars with updates for at least 15 years. What this could mean for the classic car market of the future does not seem foreseeable. What is certain, however, is that there are fewer problems with high-priced vehicles than with cheap ones, where margins are much lower. There is no question that the support for older vehicles will then have an impact on the wallet: because manufacturers would have the services paid well by authorized workshops, as they already do today.

One solution to the problem is the establishment of companies that take care of the maintenance of used electric cars: car manufacturers could "outsource" the updates for older vehicles to certified trading partners. This development had already begun when electronic components found their way into the automotive sector: spare parts for numerous earlier car models were available at scrap yards or platforms such as Ebay. Independent workshops also have the opportunity to earn a lot of money with licensed updates. (PF)