The gap between list and real world pricing for new electric vehicles (EVs) is causing confusion for fleets and hampering adoption, according to FleetCheck.
Peter Golding, CEO at the fleet software specialist, points out high levels of discounting and extensive use of pre-registrations mean it is often impossible for outright purchase fleets to know whether the price they are being offered is a good deal.
‘Largely because of the ZEV Mandate, many manufacturers are making more electric cars and vans than buyers can accommodate, and subsequently having to discount them heavily – much more than would normally be seen for petrol or hybrid equivalents.’
This meant the traditional three tier market – the list price, the price that a fleet can access from a manufacturer, and the dealer forecourt pre-reg price – were much further apart than the norm, he explained.
‘The situation is bad for cars but probably worse for light commercial vehicles, where demand for EVs is lower. Just this week, we recently received an e-mail of available pre-reg vans from a dealer that was more than 80% electric, some at prices that made a complete fiction of list.
‘Spot deals that last a few weeks or a month are an additional issue. Everyone across the fleet sector hears of ridiculously low prices on particular EVs that become available when a boatload of stock arrives that a manufacturer needs to clear.’
For fleets that buy vehicles, he said, this kind of disorderly marketing was perplexing and annoying – and the problem was especially acute for businesses taking their first steps towards electrification.
‘Of course, fleets expect a discount over list but the official price remains a reference point. We regularly speak to operators – especially at the small and medium end of the fleet spectrum – who feel they don’t know whether the real world price on offer for a particular EV is reasonable. Yes, the discount is attractive but the list price itself is meaningless.
‘This situation hampers EV adoption because fleet decision makers are hesitant to push the button on acquisition when a much better deal might be available elsewhere or next week.’
There was also an impact on residual values that in turn affected rates offered by major leasing companies.
‘Leasing companies are probably offered more consistent levels of pricing because of their buying power but the kind of discounts and fluctuations being seen make residual value forecasts difficult and are one of the reasons they are so poor for EVs.’
The problem would largely be resolved if manufacturers moved their list prices for EVs closer to the figures being paid, he said.
‘There are examples of this starting to happen and list prices for EVs generally have fallen as the cost of making them has reduced. However, there are still far too many instances where the official figure is too far adrift to make any sense.’