Car finance firms losing "hundreds of millions” in EV depreciation want Govt support
The BVRLA says the disparity in supply and demand for electric cars is resulting in weaker-than-expected residuals, which is costing firms millions
Car finance and leasing firms have asked the Government for financial support after the huge depreciation of EV values has led to the companies losing “hundreds of millions” of pounds – which is currently being passed onto consumers in the form of higher interest rates and car financing costs.
As Richard’s car ran through the cutting — it was electrical, odourless, and almost noiseless — he perceived in front of him the elephant herd standing in the road.
Arnold Bennett - Teresa of Watling Street (1904)
10 comments:
If the finance firm managers misjudged their market to the point of losing hundreds of millions, they need to explain themselves to their shareholders. If they have any sense (and sometimes they are starting to show signs of it) the fund managers that are probably the main shareholders will decide they need a new management team with a better grasp of reality.
I would imagine it's quite difficult to estimate depreciation and also customer interest when it comes to completely new products like EVs. The learning curve is steep, but losing hundreds of millions is an easy lesson to remember. "We won't get fooled again", as the song goes.
Good luck, Ed. If you can't sell a product to the public, I reckon your only other options are to eliminate the alternatives - ICEs - through massive taxes, increasing inconvenience, or legal bans. Tough one, mate.
Barbarus - yes, new management teams indicated. It's as if finance firm managers didn't see beyond the fantasies of their social class and so failed as managers.
Sam - and as we know, they knew from the start that eliminating alternatives would have to be part of the plan. Vile people.
Battery residual value has been known to be close to zero for ages. My sympathy for them is likewise zero.
decnine - that's why I'd never touch a used EV, the battery may be virtually worthless, which means the car is too.
I may have got this wrong but, as I understand it, the government threatened to fine car manufacturers or dealerships, if they did not sell a certain number of vehicles they did not want to make, and the public did not want to buy.
If this is true, then we have been, and still are, governed by complete and utter cretins.
SoT, how many cars owned, or used, by Ministers, are EV?
Penseivat
The photo shows our past and our future.
https://unherdablecats.com/2025/04/12/saturday-7-onwards-5/
Penseivat - that's how I understand it, fined if they don't sell enough. Yes they are cretins, even if we accept their sustainability nonsense, what they are doing will fail unless the whole world does it.
dearieme - a strangely attractive world, in spite of all we know about the drawbacks.
All these companies clammouring for government handouts rather than banding together and just saying no, is how government does it's thing these days. From the smoking ban to carrier bag charges to banning plastic straws, to EVs and heat pumps
We never stand up for ourselves anymore
Bucko - I agree, we don't stand up for ourselves, although I wonder how many people see it like that, millions would still vote Labour or Tory.
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