The Impact of EV Price Concessions on Fleet Resale Value and the Latest Insights from Remarketing Conferences
By Patrick O'Connor September 27, 2023
Hello everyone! My name’s Patrick O’Connor, and I am the Director of Remarketing for Wheels. With 30 years in the automotive world and a substantial chunk of that dedicated to the nuanced realm of remarketing, I’ve been front and center, witnessing the evolution of our industry. Today, I’d like to share some insights on the Electric Vehicles (EVs) market, its challenges, and how Wheels is at the forefront of addressing these challenges.
Decoding EV Price Concessions
One of the first things potential EV buyers often ask about is the impact of upfront price concessions on the long-term resale value of these vehicles. The initial price reductions certainly leave a footprint on the future resale value. However, this fact shouldn’t deter prospective buyers. Remember, the primary consideration should be the immediate value and benefits the EV offers during its tenure with you. The resale value is undeniably affected by these concessions, but with the rapidly changing EV market dynamics, the effects can vary.
Inside Scoop from the Latest Remarketing Conferences
Through various remarketing conferences, a few trends have become abundantly clear. The industry is bracing itself for a more substantial influx of EVs. These vehicles come with their own set of challenges—they’re generally heavier than the traditional Internal Combustion Engine (ICE) vehicles. This added weight means there’s a need to rethink transportation logistics and service infrastructure. Plus, the impending wave of battery health technology is something to watch out for. A robust battery doesn’t only mean a smoother EV experience; it’s a ticket to ensuring a better resale value.
Technology: A Double-Edged Sword
Modern EVs are a blend of cutting-edge technology. They offer unparalleled features, ensuring safety and convenience. However, this technological brilliance is a double-edged sword. The cost of repairs can be steep, given the intricate web of sensors these vehicles come equipped with. A minor scrape could lead to a costly repair due to the potential damage to these sensors. For fleet managers, understanding this aspect is crucial—it helps in preparing for potential future costs.
Wheels’ Remarketing: Maximum Visibility and Value
So, where does Wheels fit into all of this? Our fleet remarketing approach is multi-pronged. We don’t just focus on auctions. We prioritize offering vehicles to our customers and their employees. This approach ensures that we provide maximum value, especially in an industry segment that’s often plagued with supply shortages. Once this stage is completed, dealers get the opportunity to inspect and bid on these vehicles, ensuring they get top-notch quality. Any vehicles that then proceed to auctions do so on a global digital platform, ensuring maximum visibility and value.
The EV landscape is complex and filled with opportunities and challenges. As the industry evolves, having a trusted partner can make all the difference. Wheels, with its decades of experience and innovative approach, is that partner. Navigate the EV marketplace with confidence.
Contact Wheels if you’re looking to lease your next electric vehicle fleet. We’re here to illuminate your path in the EV revolution.