Could Electric Car Leasing Services Kickstart the Market?

Could electric car leasing services kickstart the market?
Could electric car leasing services kickstart the market?

The electric car technology is there, battery technology is improving, and there is no doubt that efficiencies over gasoline vehicles are there for all to see. However, for some reason the electric car market is still not pushing ahead as many had expected and indeed sells but a fraction of the number of gasoline/diesel vehicles each and every year.

A number of experts are now comparing the electric car market to the mobile phone market, especially in its early years, when they were relatively expensive to buy but once unit costs came down they were relatively cheap to with a contract, i.e. similar to a leasing service. It may well be that the electric car market needs to look down this particular avenue to attract the attention of would-be electric car enthusiasts who are perhaps put off by the relatively expensive cost of the vehicle.

Free upgrades

Aside from leasing electric vehicles, which would allow you to upgrade to the latest technology in the future, there is also the issue of leasing batteries. There is no doubt that the cost of replacing batteries on your electric vehicle is relatively expensive at the moment and indeed the cost of the battery packs makes up a large percentage of the overall cost of the vehicle. So, should we also be looking towards leasing batteries and therefore allowing motorists to upgrade to the latest battery technology in the future?

Quote from ElectricForum.com : "Many people are still sitting on the fence with regards to electric vehicles and their short to medium term value therefore the option to buy or lease a Nissan Leaf has given electric vehicle followers food for thought. So, did you decide to buy or lease your Nissan Leaf?"

Can you imagine buying an electric car today which was up with the latest technology and the latest battery power? However, can you also imagine the opportunity to upgrade next year when new battery technology is available, when new electric car technology goes online, and new aerodynamics become more affordable?

Customer satisfaction

The fact is, that offering "free upgrades" could well be the key to the future of the electric car market. These free upgrades would be available via the leasing system and as long as finance companies were able to see a return from this particular type of service they would bend over backwards to help. It is also worth noting that as the cost, both running and maintenance, of electric vehicles becomes more transparent, insurance companies will flock to the sector, finance companies will see this as a new avenue for the future and an increase in unit production numbers will bring down the base cost of individual electric vehicles.

The problem today, which will not be such a problem in the future, is that those buying an electric car today may well be concerned that the technology in their vehicle has been overtaken, or is indeed obsolete, in just a couple of years. This would then lead to a relatively small sell on value for their vehicle and a potentially large loss on the purchase price.

Conclusion

It seems more and more obvious that the electric car industry does needs to adopt a different style of selling than we have seen in recent years. The relatively high entry price has shocked many people, although the opportunity to lease an electric vehicle at an affordable price may well be the way forward. This would have a two pronged impact upon the electric vehicle market, making it more visible to the motoring public and also bringing down unit costs as the number of electric cars sold increases.