The downside of this is tgat the residual value Motabilities be able to get will also drop and the manufacturers are not following Tesla in reducing the price of new EVs, so the money between the sum received by Motability, coujd mean the AP will go up, or specs will drop
Its like a new mainstream gadget coming to the market their prices are over inflated and eventually fall. Added to that the shortage of shortage of chips and other materials are only just starting to recover, along with the fact used BEV prices are starting to fall will have an effect on new prices as markets start to normalise.
Its always been said BEV prices will fall to near that of a new ICE vehicle as time went on. The problem is manufacturers are/will be use to the inflated prices initially but, have no option to lowe prices to market trends.
Intrestingly an UBS report on ev central states “it will cost just US$1900 ($2700) more to manufacture a BEV in 2022 compared to an ICE vehicle. That will drop to nothing by 2024 and predicted battery costs will drop below US$100 ($140) per kilowatt hour by 2022, a pricing benchmark long held up as a key competitive moment for BEVs. Tesla and others claim they’ll eventually go much lower than that”
Currently, batteries account for up to 25 percent of the cost of a BEV.
The research is based on detailed analysis of batteries from the seven largest manufacturers, including China’s CATL, Korea’s LG Chem and Japan’s Panasonic.
UBS predicted tardy auto manufacturers who delay a commitment to BEVs risked being left behind by committed rivals such as Tesla and Volkswagen, which is investing 33 billion Euros ($55 billion) into electrification.
UBS also predicted lowering battery costs would spell the end for hybrid vehicles that combine both electrified and ICE propulsion because they would become too expensive.