Smart Leases: the EV strategy that will turn around leasing profits

In the rapidly evolving landscape of electric vehicles (EVs), leasing companies face unique challenges and exciting opportunities.

At Generational, we recognise that leasing companies are taking on significant risks making large capital investments in EVs, where future values are much less certain than their internal combustion engine (ICE) counterparts. Our mission is to transform these challenges into opportunities for leasing companies, providing innovative solutions that enhance asset management and create value.

The EV leasing conundrum

Leasing electric cars presents a complex scenario for companies. While the shift towards sustainable transportation is clear, the uncertainties surrounding battery longevity and vehicle depreciation can make accurate residual value predictions challenging. This uncertainty can lead to conservative pricing strategies, hindering market growth and customer adoption.

Increasing residual values and market share

At Generational, we develop solutions to turn these into opportunities. Our EV monitoring and battery health certificiations provide leasing companies with powerful tools to:

1. Accelerate remarketing: Our certificates enable remarketing teams to differentiate their vehicles in the market. This leads to faster sales, unlocking working capital to fuel growth.

2. Boost residual values: Consumers are willing to pay a premium for a vehicle with a good battery. By offering transparent, data-driven insights into battery health, leasing companies can confidently set higher residual values for their EVs.

3. Sell more contracts: We make use of connected vehicle data to help leasing companies develop more personalised and customer-centric offers for electric vehicles. With Generational, leasing companies can develop more competitive and personalised pricing models, attracting a broader customer base.

Unlocking new revenue models through connectivity

The electrification of vehicles opens doors to innovative, cloud-connected experiences. EVs are not just modes of transportation; they're rolling data centres, offering unprecedented opportunities for:

• Predictive maintenance: Anticipate and address issues before they become problems for your customers, reducing their downtime and maintenance costs.

• Usage-based products: Tailor leasing products based on individual driving patterns and vehicle usage.

• Driver incentives: Create programs that reward responsible driving and proper vehicle care.
  

To capitalise on these opportunities, it's crucial to establish a clear connection between vehicle usage, depreciation and battery degradation. In the EV era, traditional metrics like mileage become less relevant. Instead, a holistic approach to vehicle health is necessary.

Smart Leases: driving the future of EV leasing

We call the combination of connected vehicle data and electric vehicle analytics Smart Leases. As the automotive industry continues its electric transformation, leasing companies have a unique opportunity to use these new technologies to launch products and services of the future.

By partnering with Generational, you gain access to cutting-edge technology and expertise that turns the challenges of EV leasing into competitive advantages.

Our solutions not only address the immediate concerns of residual value and risk management but also pave the way for innovative business models that will define the future of mobility.

In an industry where data is as valuable as the vehicles themselves, Generational provides the tools and insights needed to thrive in the electric era. Together, we can create a more sustainable, efficient, and customer-focused future for vehicle leasing.

Are you ready to revolutionise your EV leasing strategy? Speak to us to start driving the future together.

MotorPoint, EV depreciation, March 2024