As the commercial vehicle sector becomes
ever more embattled, there might be some hope to be drawn from the
growing popularity of electric, battery-powered vehicles. This is
due not only to the introduction of legislation favouring this
sector, but also to several leasing models which help spread out
the capital cost of these vehicles.
One successful leasing model is the ‘buy the
vehicle, lease the battery’ formula. This is becoming increasingly
popular, not least as the lithium-ion rechargeable battery is the
most expensive component of an electric car or van.
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Coventry-based Modec, which manufactures
electric commercial vehicles, is focusing heavily on this business,
and has a vendor finance partnership with ING Lease to finance its
batteries.
Lease deal terms are for five years and are
available for two battery types. One uses lithium ion phosphate
technology, costs £490 per month and can power a vehicle for 15,000
miles a year. The second uses sodium nickel chloride technology,
costs £650 monthly, and covers 20,000 miles.
Modec has seen a boom in orders, mostly from
the Netherlands, France and Germany, largely due to environmentally
friendly policies being developed in these countries. Of the last
100 vehicles sold, 84 have been purchased from abroad, while the
remaining 16 were ordered in the UK by international companies.
Modec is not alone in providing lease
facilities in the electric LCV sector.
There is also growing interest in the heavy
commercial vehicle sector, and this is likely to give rise to more
vendor finance opportunities.
One of the largest manufacturers in the
electric HGV sector is Smith Electric Vehicles, a UK-based company
which has been in existence for over 80 years. It has leasing
packages for both its vehicles and also its batteries. The company
has vendor finance arrangements with a number of lessors, including
Carillion Fleet Management and Venson Vehicle Management.
Vehicles produced by Smith include the
‘Ampere’, a 2.3 tonne light van and the ‘Newton’, a large box truck
of up to 12 tonne.
So far Smith has focused its efforts on
overseas markets, particularly France, Scandinavia and the United
States, where the Obama administration is planning to invest
heavily in the development of advanced batteries.
The company now also expects the UK government
to take the lead in deploying electric vehicles in public sector
fleets.
“The private sector will then be able to reap
the benefits of that once the downturn is over,” a spokesperson
said.
“This should allow the industry to achieve the
volume levels needed to bring the production costs down and make
the lithium-ion technology more affordable.”
Ultimately, if lithium-ion technology becomes
less expensive, an electric vehicle boom could soon become reality.
According to Japan-based GS Yuasa, one of the largest lithium-ion
battery suppliers, there could be an “unbelievably large market”
even if only one in 10 vehicles goes electric.
It could be a great opportunity for lessors
keen to stay at the forefront of the green revolution.
