@kdwolf As this is a Motability forum, can I just check that when you say that you think that EV prices will “significantly decline over the next month or two”, are you referring to the retail prices, or the Advance Payments (APs) for them through Motability?
The reason that I ask is that I don’t think that one will necessarily follow the other! To explain, Motability have taken a massive hit due to plunging EV residual values – and that’s with most of the current EV fleet being ‘known’ brands, where second hand customers could be expected to be more confident of making a purchase. Motability’s increasing exposure to the EV residual market has been one of the main drivers behind the across the board rise in APs.
We are starting to see the beginnings of a flood of unknown, often Chinese, brands which will undoubtedly be cheaper from a retail selling price, but could well suffer crippling depreciation. If retail customers are shunning second hand EVs from known brands, only time will tell what the demand will be when these cars hit the second hand market. I’d suggest that leasing companies such as Motability are likely to take a cautious approach regarding anticipated residual values, and therefore even though these cars may drive retail prices down, this won’t necessarily result in lower APs – at least initially.
