3 ms·

In Germany where more than 70% of the new vehicles are bought/leased by companies over 24/36 months, you are totally right. They do not care as longevity of the

by Loic 2y ago

In Germany where more than 70% of the new vehicles are bought/leased by companies over 24/36 months, you are totally right. They do not care as longevity of the battery is priced in the lease.

Someone 2y ago
I don’t follow that logic. If you’re in charge of car lease contracts at a company, wouldn’t the lease price be one of the major factors in deciding whether an offer is good/in whether your boss is happy about you? On the contrary, I would think individual leasers would be more likely to make the impulse choice of “greater range, and ‘only’ costs $X a month more” than companies, who often lease dozens or more cars.
- tgsovlerkhgsel 2y ago
  The price would be a major factor. The state in which the battery will be in at the end of those 3 years would be a complete non-factor (because at that point it's not your problem anymore). So someone who leases like this won't need to think/worry about battery longevity, whereas someone buying will be hesitant to buy a vehicle unless they are reasonably sure that the battery will last a long time. Of course, battery degradation would likely have some influence on the lease price, but I doubt it will be a major factor.
  - Someone 2y ago
    > Of course, battery degradation would likely have some influence on the lease price, but I doubt it will be a major factor. I disagree. Battery longevity hugely affects how much money the lease company can get when they sell the car after X years, so in a world of perfect information, it should have a large influence on lease price. In the real world, the lease company will have to gamble a bit. Many will choose to spread the risk by buying a spread of different cars, but they’ll still calculate expected sale price and adjust the lease price accordingly.

3 ms·

In Germany where more than 70% of the new vehicles are bought/leased by companies over 24/36 months, you are totally right. They do not care as longevity of the

by Loic 2y ago

In Germany where more than 70% of the new vehicles are bought/leased by companies over 24/36 months, you are totally right. They do not care as longevity of the battery is priced in the lease.

Someone 2y ago
I don’t follow that logic. If you’re in charge of car lease contracts at a company, wouldn’t the lease price be one of the major factors in deciding whether an offer is good/in whether your boss is happy about you? On the contrary, I would think individual leasers would be more likely to make the impulse choice of “greater range, and ‘only’ costs $X a month more” than companies, who often lease dozens or more cars.
- tgsovlerkhgsel 2y ago
  The price would be a major factor. The state in which the battery will be in at the end of those 3 years would be a complete non-factor (because at that point it's not your problem anymore). So someone who leases like this won't need to think/worry about battery longevity, whereas someone buying will be hesitant to buy a vehicle unless they are reasonably sure that the battery will last a long time. Of course, battery degradation would likely have some influence on the lease price, but I doubt it will be a major factor.
  - Someone 2y ago
    > Of course, battery degradation would likely have some influence on the lease price, but I doubt it will be a major factor. I disagree. Battery longevity hugely affects how much money the lease company can get when they sell the car after X years, so in a world of perfect information, it should have a large influence on lease price. In the real world, the lease company will have to gamble a bit. Many will choose to spread the risk by buying a spread of different cars, but they’ll still calculate expected sale price and adjust the lease price accordingly.