Novatae Risk Group’s Post

🚗 EV price parity set to take longer than previously thought 🚗 Predictions that EV prices would come down to match those of petrol and diesel cars by the middle of this decade now look overly optimistic, MPs have been told. Addressing a House of Commons Transport Committee session on the health of the EV market, Society of Motor Manufacturers and Traders (SMMT) head of technology and innovation David Wong explained that the milestone now seemed to be less imminent a prospect than had previously been said. Read more online: https://lnkd.in/ecU9CEAx 🔔 Click our follow button to see regular car and fleet industry news and insights, and subscribe to our newsletter 🔔 #BusinessCar #evs #electricvehicles #fleet

The expense of insuring an EV may surprise some consumers, with vehicle complexity and claim costs affecting rates. Citing Mitchell data, The Wall Street Journal found that EVs typically cost more to repair, which leads to larger claims. In the U.S., the average severity of a claim for a repairable EV was $6,066 in the first quarter, nearly 30% higher than for internal combustion engine (ICE) vehicles. According to Mitchell, part of that cost can be the greater work involved: over three mechanical labor hours on average for a repairable EV claim estimate, versus less than two for ICE vehicles. Mechanics sometimes have to de-energize electric vehicles before removing their high-voltage batteries to avoid damaging them during repairs.

Some electric vehicles are now cheaper than they used to be, and the lower price tag comes with challenges for auto lenders and fleet managers. Continual price cuts are making it difficult for the industry to manage residual value risk, and for companies that rely on EVs for their business model, volatility in pricing could spell trouble. Read our latest feature: #autofinance #autoindustry #ev https://hubs.la/Q02n_pJV0

Electric Vehicle (EVs) manufacturers are having to deal with a number of negative issues that are impacting sales. A) Range anxiety is still an issue B) Repair costs are extraordinarily high C) Insurance rates are much higher than regular cars D) Resale value has plummeted E) There is only demand on the low-end where there is less, or no profit.

Great job Paul Fortin in providing market insights on the state of the EV market in a recently published Auto Finance News article. Our recently released EV index is an industry first in providing perspective on the state of used EV prices in the wholesale market. With the substantial EV market volatility, financial benchmarks such as ours are helping lead the way in bringing transparency and needed signal to aid auto finance portfolios managing residual value risk.

EV to match fuel vehicle price

Some electric vehicles are now cheaper than they used to be, and the lower price tag comes with challenges for auto lenders and fleet managers. Continual price cuts are making it difficult for the industry to manage residual value risk, and for companies that rely on EVs for their business model, volatility in pricing could spell trouble. Read our latest feature: #autofinance #autoindustry #ev https://hubs.la/Q02n_bcl0

The cracks are getting harder and harder for the EV lobby group to overcome. People simply don't want them. But look they have their place. If you just want to do around town driving AND you have solar panels or can charge at home then great. If you have another ICE vehicle to use for longer journeys great. If you have loads of time on your hands and can afford to faff around finding a charger that works, waiting for it to charge and are silly enough to want to pay more for your mobility than a gas car would and are happy to lose effectively the cost of an ICE car in depreciation then great.  If you want to risk parking a potential bomb outside your house that creates a fire storm that rages at almost 3 x the heat of burning petrol and cannot be extinguished AND you are happy to pay stupid insurance premiums as a result of the risk then awesome. Then they are perfect for you. Few fit or want to fit in any of these categories. #electricvehicles

QBE Insurance notes UK data recorded 1000 fires linked to lithium ion batteries. 56% (<560) were E-bike, E-scooter, or EV related. Many cities in the US are tracking increasing trends in battery based fires too. After an NYC fire in March, Wall Street Journal put together a nice scroll-graphic to illustrate the way batteries enter a state of "Thermal Runaway". A few take-aways: 1. Purchase batter-based equipment from reputable manufacturers where proper testing and controls are in place. 2. Be mindful where and in what quantities battery-based equipment is being stored. 3. Solid state and water-based batteries show promise in mitigating the fire hazards around batteries. https://lnkd.in/easenXzz

The truth is electric vehicles aren't within financial reach for many consumers. With average monthly insurance premiums 44% higher than gas vehicles, affordability remains a major hurdle. As discussions continue, it's evident that the proposed EV mandate is out of touch with current and forecasted customer demand. Explore more of our top EV mandate concerns: savingvehiclechoice.com.