Why Leasing Firms Do not Like Hybrids and Electric Vehicles
Would you like to acquire an all-electric automobile? Maybe you can lease one particular for a few years, as you may possibly want a new Mercedes, Jag, or BMW? Nicely, assume once more my buddy, it may possibly not be that easy, and there are already indicators of a snag brewing in the market. Okay so let’s speak about this shall we?
In the Wall Street Journal on November 14, 2011 there was an intriguing post titled “Leasing Firms Shy From Electric Car or truck Rollout” by Joshua Mitnick. The report stated that leasing organizations exactly where unsure of the loss of worth once the automobiles ended up in corporation rental fleets, and that it could be as higher as 70% as opposed to 49% for common gasoline cars.
On the second page of the post titled “Leasing Firms Dubious of E-Vehicle Program” it told of an Israeli electric automobile company attempting to get off the ground and compete, and why he required a leasing company willing to make the deal.
Still, in my humble opinion as an auto business consultant I can remember and perhaps you are also young to recall, but US Leasing firms along with auto manufacturer’s in-home leasing units at GMAC and Ford Motor Credit took a bath on the worth losses at the end of the leases on SUVs, and Freightliner Trucks took it in the shorts on more than-the-road trucks almost causing bankruptcy. So, this is a real concern.
Even so, I know of an even larger concern, not mentioned in this article, and that has to do with leasing companies signing on with individual auto owners, let me explain. You see, these electric auto batteries only last five-7 years depending on usage, and the batteries can cost a lot more than $7000.00 for instance for a hybrid like the Prius, so, for an all-electric automobile it could be almost double that or $14,000 so if the total value of the car is let’s say $33,000 which was indicated in that WSJ report, then that is almost a single-half the total cost of the auto proper there, 50% with no the regular depreciation linked with regular automobiles that are made use of.
See بنشر امام المنزل , so, no wonder leasing businesses in the sector are not prepared however to go out on a limb for all-electric cars or supply leasing for them, I wouldn’t either, it is new and unproven technology plus, there is no history of valuations to appear at but. Indeed, I hope you will please think about this from a monetary danger standpoint – the leasing organizations are appropriate, and need to be careful with their dollars. Feel on it.