Leasing companies are harming the transition to electric cars through their high pricing and weak zero-emission targets, a new study by Transport & Environment finds.
Battery electric cars have similar resale value to diesel and petrol vehicles, the analysis finds. Leasing companies typically charge customers for the expected loss in value of a vehicle over the three to four year lease, so higher lease prices mean they expect BEVs to lose more of their value. But this is no longer the case.are unjustified. T&E analysis of 2.7 million used car prices reveals that BEVs do not depreciate more than other types of cars.
Stef Cornelis, director of electric fleets at T&E, said: “Today customers are being overcharged by leasing companies if they want to switch to a battery electric car. Leasing firms are too conservative when setting their monthly prices. Their rates reflect the state of play from 5 years ago. With this pricing strategy, their profits are obviously high and consumers are overpaying to go electric. At the same time, they are harming the BEV transition.
None of the leasing companies have targets to become fully battery electric by 2030. The “EV” targets that they have set are weak and include plug-in hybrids — which emit just as much as petrol and diesel cars. Their commitments are far behind market dynamics as large carmakers have already committed to 100% battery electric by 2030.
If they don’t adapt quickly and offer appealing electric vehicle rates, new entrants and startups will take over the business of established leasing companies.🤷♂️
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