FLEETDRIVE
Source : RedBook Australia
So , what ’ s driving this downward trend for the upper end of the BEV market ?
No doubt , it can be attributed to new market entrants that are lifting the standards and offerings in the pragmatic-green category , but also the impact of Government policy .
Off the back of the EV policy exempting Zero Low Emission Vehicles ( ZLEV ) under the green LCT threshold from Fringe Benefit Tax ( FBT ), we ’ ve witnessed an explosion in demand for cars that sit in that lower band . This policy has also sparked rapid repositioning of ZLEV ranges from OEMs to capitalize , with some brands down grading premium-technology offerings to fit under the magical $ 89,332 threshold . Whilst this is good news for new buyers , it has a detrimental effect on the superseded models , effectively prematurely depreciating them .
And , this is why , like many other learned colleagues in this space , there is strong advocacy for balanced government EV policy . Focusing solely on new EV adoption , leaves the used market devoid of the balanced support required to ensure that natural market forces don ’ t overcorrect . This current tidal wave of EV novated leases driven by FBT exemptions in particular has RedBook monitoring things very closely .
RedBook ’ s outlook for EV future values remains one of cautious optimism with clear distinctions in brands , models , and body types . As illustrated earlier , whilst Tesla is regarded as the industry benchmark , things can change quickly and thus require constant attention .
And none of the above , takes into account what a step-in battery technology could have on the current batch of EVs in 5 years ’ time . The current generation of EV ’ S can achieve 300-500km mileage ranges . The next wave in battery tech is quoting double that mileage at a lower cost and weight .
Obsolescence is a far greater issue for EVs than ICE , and until such time there is visibility in used battery health , more transparency in replacement of individual battery cells to prolong a vehicles life , the uncertainty will remain .
ISSUE 44 DECEMBER 2023 / WWW . AFMA . ORG . AU 21