Volkswagen Plans To Lease You Its Used ID Electric Vehicles

  • Creator
    Topic
  • #163854 Reply
    Brydo

    The brand says it’s a way to keep control of the cars’ valuable battery packs.
    According to a recent report from Automotive News, Volkswagen will “crack an industry barrier” by offering its used all-electric ID vehicles for lease. Fortunately for those of us in the States, VW plans to include North America in the upcoming strategy.

    Volkswagen executives recently shared this information with Automotive News, explaining that it’s a way for the brand to maintain control over its valuable battery packs. The news came earlier this week, directly from VW Group CEO Herbert Diess during talks at the Munich motor show. He pointed out that re-leasing the cars will allow the company to put the battery packs to new uses, such as for fast chargers and home power options. Diess shared via Automotive News:

    Since EV batteries are expected to last for many years, the battery packs in older used EVs may still be worth a large chunk of change even after the car itself has depreciated significantly. Moreover, Diess believes an EV battery pack’s value could work to keep the car’s residual value high enough that re-leasing will be an affordable option for car shoppers.

    Diess went on to say that we have already seen EVs holding their value better than gas cars. Regardless of the condition of the vehicle, unless it’s completely destroyed, there’s still a very valuable battery pack inside that can be reused, repurposed, and/or recycled.

    CEO of VW Group of America Scott Keogh added that the brand is already working to implement this plan. He clarified that the residual values could keep VW EVs on the road in various owners’ possession for up to eight years. After that, the cars would be returned to VW so that the batteries can be removed and recycled.

    At first glance, this seems like a win for Volkswagen and for EV shoppers as a whole. Head down to our comment section and let us know what you think of this plan. Are there any issues that may arise? Should other EV makers consider following suit?

Viewing 8 replies - 1 through 8 (of 8 total)
  • Author
    Replies
  • #163860 Reply
    Tim

    Seems like a win unless they keep prices artificially high.

    #163861 Reply
    Mike 700
    Participant

    Makes sound business sense for VW, albeit the cost of buying back EV’s which have been purchased will be huge especially if residual values are high- and ironically, this scheme will likely keep the values high!

    It could be an attractive proposition for Motability also, if VW price the vehicles for volume distribution ( they can keep track of them easily & plan volumes easier also, via Motability, just as they are quietly doing at present – my dealer  told  me today  that VW are indeed controlling distribution by informing dealers that ‘ in stock cars are not to be switched to Motability and that all Motability orders must be ‘factory orders’  !

    Potentially an expensive proposition for a lessee however, especially leasing an EV near the end of the battery life ?

    Just some thoughts?

    #163862 Reply
    Brydo
    Participant

    Mike700 motability need a good kick up the backside. They are sitting on a goldmine going forward if, and only if, they look to the future and the potential they have at their fingertips.

    Having the other 1,000,000 + customers who chose not to join the scheme actually in the scheme would be massive but even without them there are Opportunities out there that could be turned to dosh 💰.

    Once V2G chargers become economical, motability could set up as an electricity provider to balance the grid with hundreds of thousand BEVs at its disposal, and obviously there would be money in it for us also.

    As you say motability could do what VW are planning and lease out used motability BEVs. This could encourage others to join the scheme also.

    The other option I see for motability, farther down the line when autonomous vehicles are with us. Is to give customers the option to let their cars out as taxis when they’re not using them. As cars are sat in the drive 95% of the time it could be attractive to members wanting to earn some extra money.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

    #163878 Reply
    ChrisK
    Participant

    I would have thought with the advances in battery technology leap frogging every year that a battery in a VW today would not be worth that much in 6, 7, 8 plus years time.

    But of course there will always be, like there’s always has been, a scarp value.

    #163902 Reply
    Mike 700
    Participant

    Mike700 motability need a good kick up the backside. They are sitting on a goldmine going forward if, and only if, they look to the future and the potential they have at their fingertips. Having the other 1,000,000 + customers who chose not to join the scheme actually in the scheme would be massive but even without them there are Opportunities out there that could be turned to dosh 💰. Once V2G chargers become economical, motability could set up as an electricity provider to balance the grid with hundreds of thousand BEVs at its disposal, and obviously there would be money in it for us also. As you say motability could do what VW are planning and lease out used motability BEVs. This could encourage others to join the scheme also. The other option I see for motability, farther down the line when autonomous vehicles are with us. Is to give customers the option to let their cars out as taxis when they’re not using them. As cars are sat in the drive 95% of the time it could be attractive to members wanting to earn some extra money.

    The decision has been taken, like it, hate it, or foolishly just lump it, bitch & moan about it , put up all sorts of obstacles to it , ‘electric’ it’s new, & there is no turning back, it is the future ( perhaps with other alternative fuels , Petrol & Deisel are yesterday ,electricity, hydrogen ,sheep dip – Who knows?) so we should work with it ,think differently, , think ahead, not about what’s gone, and your right Brydo, this includes Motability.

    Those who sit on the fence, will stay sitting on the fence , watching the huge opportunities go ‘speeding by them’.

    Well done VW for innovative thinking!

     

    #163903 Reply
    Windy
    Participant

    I think this will inevitably be reviewed as this is a poor attempt on a traditional car manufacturer to stake their claim on the future of EV, we must remember we should all be driving EV today it was far more progressive until someone discovered what to do with the waste element of oil in the late 19th early 20th century.
    personally I feel battery technology has a 100 years of pent up rejection, which it is now free to pursue. There is no doubt cost will plummet and to try and keep the traditional used car residual will be a fools errand, supported only by finance and the profit from percentage rates remember all traditional manufacturers are finance companies. I think we needs new approach and I hope for it. That here will be many New EV manufacturers who will not have the historic shackles of the ICE manufacturers and will be able to produce personal transport (let’s not even call them cars) that will be appropriate to our needs, where the most important thing is Not top speed bhp or 0 to 60, we are lost in the norm of car ownership. I have an EV where the filler cap for diesel is still there, the place where add blu was put in is still there, the handbrake is a tiny button where the lever used to be, the clocks are still in the old speedo Rev counter configuration WHY not of it makes any sense, forget car manufacturers we now need EV manufacturers this is the time for change, I am so excited I didn’t think it would happen in my lifetime I want a pointy thing with full wing sliding doors and a yoke for a steering wheel. ( must take wheelchair and 4 large dogs)

    #163904 Reply
    ChrisK
    Participant

    Taking on used EV’s is one thing and no problem with that but I don’t think the taxi bit would work and puts my mind back to the days of company cars and vans and remember a lot of operatives that just did not give a damn about other folks cars and vans in particular company ones or in this respect maybe Motability ones.

    Generally we would be the keeper of the car while we worked for the company but from time to time the vehicles would have to be lent out to other operatives and the cars were often returned with chewing gum all over the seats, boggies on the steering wheel and even had in the days of displaying a tax disk had some guy think it was a good joke to put a note in front of the tax disk saying “f off traffic warden I’m not paying any road tax” very funny but it would have not been for myself had a traffic warded or copper seen it before I did that was as it happens a few days later.

    This doesn’t even take into account when the company would receive a letter from DVLA as to who was driving the car when it passed a speed camera on the motorway and you have no hard evidence that it was not you driving at the time and not even in the car at the time. The company at this time tried to dodge the bullet by saying simply they did not know although they of course knew who was in the car at the time but they honestly did not know who was driving at the time and no one is going to own up. Company boss then got a warning of perverting the coarse of justice so had to warn those in the car that if they did not own up they would get the sack.

    Just imagine a Motability customer having to sort that sort of thing out.

     

     

     

    #163906 Reply
    Brydo
    Participant

    Remember Chris this would be when we have autonomous cars, so no driver, no speeding, no deliberately breaking the law or rules of the road.

    The big difficulty would be the government, obviously motability get VAT free cars and insurance. If motability have other sources of income others would probably complain and it could result in removal of this golden goose.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

Viewing 8 replies - 1 through 8 (of 8 total)
Reply To: Volkswagen Plans To Lease You Its Used ID Electric Vehicles
Your information: