Exploitation risk for electric cars

Exploitation risk for electric cars

Only very few companies and private individuals finance an electric vehicle with their own funds. The so-called car subscription has been experiencing real hype for some time now. Companies that want to keep their vehicle fleet as flexible as possible are particularly keen on this. But regardless of whether a customer opts for operating leasing, residual value leasing or a car subscription, the monthly costs are determined by the purchase price, useful life and mileage as well as the expected residual value of the vehicle, which the financier uses as the basis for his calculation.

Renato Eggner, Managing Director of Raiffeisen-Leasing fleet management, is convinced: "Calculating residual values for electric vehicles as accurately as possible is of course not easy, since technical progress is progressing faster than with combustion engines and new car prices are more likely to fall. But even for vehicles with combustion engines, a medium to long-term forecast is no longer so easy due to the uncertainty about a possible future ban. The durability of the drive batteries is not a problem, Since these usually have an eight-year manufacturer’s warranty and the loss of capacity is actually much lower than originally feared.” If the user of an electric vehicle does not want to bear the future risk of disposal after a few years, he is more likely to opt for an operating leasing with guaranteed residual values. Roland Leitner from Porsche Bank notes this trend: “In this way, customers can outsource exploitation and technology risks.”

Daniel Hammer, the former Tesla Austria boss and current Head of Operations at vibe, sees the risk of recycling a diesel vehicle due to driving bans and entry restrictions to be much riskier in the medium term: "According to our analyses, which are based on the largest BEV car fleet in Austria, which we can now boast, the total operating costs of an electric vehicle over its lifespan are significantly lower than those of vehicles with combustion engines. Our extensive data and experience enable us to estimate the residual values very precisely calculate and develop more efficient recycling strategies.” The financing experts agree that the recycling process for electric vehicles is no different from the recycling process for combustion engines. As with all vehicle models, it is important for electric vehicles to correctly assess technological developments, upcoming model changes and marketability. However, Raika Leasing boss Eggner sees the risk with electric vehicles "that consumer demand will not keep pace with the increasing volume of company vehicle returns. Hence the call from the leasing association and the working group of automobile importers to politicians to introduce subsidies for electric used cars for consumers."

Just like vehicles with combustion engines, electric cars still represent a certain value after a few years of use. But how do leasing companies and car subscription providers deal with used electric vehicles? The Vienna-based provider of car subscription models, vibe, specializes exclusively in e-mobility. “Returns from our subscriptions are thoroughly checked and offered as used electric cars at more favorable conditions and fixed terms via our revibe offer,” says Hammer. Private and business customers want maximum flexibility when it comes to financing and the useful life of an electric vehicle. The car subscription has found a solid place in the market despite the vehicle manufacturers' now acceptable delivery ability, says Eggner: "Customers do not always want to commit themselves for at least 24 months, from which leasing or full-service leasing makes sense. With our 'long-term rental model', a company car is available immediately and can even be canceled and billed on a daily basis." Porsche Bank responds to its customers' requests for flexibility with daily car rentals, sharetoo car subscriptions for several months and sharetoo car sharing, for example in cooperation with WienMobil.

For many companies, the private use of the e-car by their employees also plays a major role in the flexible financing of their e-fleet. Salary conversion models are therefore very popular with companies that want to retain their employees more strongly. Since there is currently no benefit in kind for the private use of e-company vehicles, this is a win-win situation for employees and employers. Thanks to tax advantages, employees can use a vehicle for significantly less cost than if they had to buy and operate this vehicle privately. Especially when there is a shortage of workers, a company with such an offer can make itself much more attractive.  The provision of electric vehicles as a salary component also promotes the acceptance and spread of e-mobility and positions companies as environmentally conscious and future-oriented employers, vibe boss Hammer is convinced. (A. Tempelmayr)