Battery electric vehicle leases are overly priced, according to a recent T&E study of the used vehicle market. The European leasing deals for battery electric vehicles typically cost 57% more than deals for similar petrol versions. For instance, the monthly lease for a gas-powered Peugeot 208 is 371 euros ($393), while the monthly lease for an electric one is about 574 euros ($609).
The research reveals that the resale price of BEVs is comparable to that of diesel and gasoline vehicles. High lease fees signify a greater expectation that battery electric vehicles will lose value over the course of the lease period, so leasing companies would want the clients to bear the cost of the projected value loss of a vehicle during that time. However, things have changed.
It is unreasonable to charge more to lease BEVs. Battery-electric vehicles don’t incur as much depreciation as other types of vehicles, according to a T&E used-vehicle value survey. In France, Germany and the United Kingdom—the three largest markets in Europe—the depreciation of battery electric vehicles is comparable to that of diesel and gasoline. Even though there remains a disparity in Spain, that disparity is decreasing.
According to Stef Cornelis, leasing companies are currently overcharging clients if they wish to transition to BEVs. Leasing companies are overly cautious while determining the monthly leasing charges, and prices correspond to the situation five years ago. These companies clearly make profits with their pricing scheme at the expense of the clients, who are being overcharged at the same time, damaging the switch to battery electric vehicles.
With a 12 million-vehicle fleet across Europe, leasing businesses have a significant part to play in encouraging the transition to battery-powered vehicles. According to the study, these companies made up 22% of newly registered vehicles across Europe last year. However, most have none or weak zero-emission goals for running entirely on batteries by 2030. Because major automakers have already pledged to go fully electric by 2030, this level of commitment lags far behind market changes.
Because of this, the leasing industry is not driving the BEV shift. As per the survey, leasing companies in France and Spain are leasing fewer battery-electric vehicles compared to other fleet companies. The United Kingdom emerges as an exception, where the leasing industry is driving the BEV shift with a 34% adoption rate.
According to Cornelis, until leasing companies expedite their electric plans, the fight to build a used BEV market accessible to many people continues, which would further slowdown the decarbonization of the transportation industry.
It may soon be up to players in the EV space, such as Fisker Inc. (NYSE: FSR), to find ways to clip the clout of these leasing companies by coming up with their own schemes that customers can access directly.
About Green Car Stocks
Green Car Stocks (GCS) is a specialized communications platform with a focus on electric vehicles (EV), as well as other emerging market opportunities in the green sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled visibility, recognition and brand awareness. GCS is where news, content and information converge.
To receive SMS text alerts from Green Car Stocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.greencarstocks.com
Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.greencarstocks.com/Disclaimer
Green Car Stocks
Los Angeles, CA
www.greencarstocks.com
415.949.5050 Office
[email protected]
Green Car Stocks is part of the InvestorBrandNetwork.
