E-mobiles: opportunities and dangers

E-mobiles: opportunities and dangers

The currently insignificant number of electric cars in Austria, less than 4,000 vehicles, gives us time to prepare. At first just mentally. Let's take a 6-year-old boy and think about what will most likely happen in his automotive life. Assuming the boy remains healthy and develops normally, he will be allowed to drive a car at the age of 15 - i.e. in 2024. The Chancellor of Europe's largest automobile nation has also called for at least 1,000,000 electric cars in Germany as an inventory target for 2020 - but has not yet funded it. This goal orientation will influence all of Europe. Today, French car manufacturers are still ahead when it comes to e-mobility, but that will soon change. So we have to assume that e-mobility will become a “normal companion” for our boy. Since I'm speaking as a used car expert here, I'll stick with it. So it's likely that the young man's first car will be an electric vehicle. After all, who invests in an “old horse”?

Now the question arises: What happens to the father's diesel car that the young man received as a gift? The car will be traded in or offered online as a private sale. But at what price? Let's say the diesel car is six years old, in good condition and has 100,000 km on it. Today the value would be somewhere around 40 percent of the original purchase price. In numbers: Purchase price €20,000 – used approx. €8,000. But in nine years the automotive world will have changed radically. An oversupply of well-preserved, conventionally powered cars will flood the used car market because there will be little demand for these cars. Then the previous calculation is no longer correct.

Admittedly, this is (still) speculation. But anyone who seriously deals with the topic of e-mobility will quickly learn otherwise. For those of you, dear readers, who haven't done so yet, I would advise you to try driving an electric vehicle. It doesn't have to be a Tesla. A Renault ZOE also impresses with its very comfortable running and sufficient acceleration speed. The current mileage until the next “refueling stop” will at least double in the coming years (from 150 km to 300 km).

Also imagine that there will be attractive support for electric cars. Germany will introduce this. Then other European countries will follow suit. The industry is already strategically preparing for this. And honestly, the biggest burden of change will once again be borne by retail. Then come the consumers and then the state, until ultimately the manufacturers also pay their burden. Our boy today will initiate this huge change through his consumer behavior and will also benefit from it.

Fortunately, this development does not happen overnight. We can observe and adapt to it. As a leading company, Eurotax will analyze these developments in detail and support retailers. But the fact is: the negative performance of conventional vehicles will result in a brutal destruction of money. The economic damage will be great, but bearable. Because with the new electric technology, the maintenance costs for consumers will be significantly reduced, so that the losses for consumers will be partially offset. Retailers will quickly learn not to pay excessive prices for conventional cars, following the motto: An old horse isn't worth much. Industry will be the winner. The used car trade faces major challenges. These can already be seen on the automotive horizon.

With this article I would like to give food for thought. I firmly believe that good preparation is an important part of success. My advice: deal with the future topic in good time: “What consequences can e-mobility have for my company?” Because every change also brings with it the opportunity to adapt. 

With this in mind, I wish you happy holidays and a happy new year.