'Cheap Oil Is Not Killing EVs'

http://www.autoremarketing.com/trends/no-falling-leaf-values-heres-why
No falling LEAF values — here's why
Feb. 02, 2016  Joe Overby

[image  
http://www.autoremarketing.com/sites/default/files/styles/story_page_main_image/public/nissan%20leaf_3.jpg?itok=aeqRpi6o
(red leaf EV)
]

IRVINE, Calif. - The car whose late-model auction values showed the most
positive change during the fourth quarter?

According to a Kelley Blue Book analysis, it was an electric vehicle:  the
Nissan LEAF.
 
This took place, even amid gas prices that tumbled more than 14 percent.

Specifically, KBB Auction Values on model-years 2012 through 2014 LEAF
vehicles were up 3 percent in Q4 from where they were in the third quarter.

Average gas prices fell $0.32 in Q4, a decline of 14.2 percent, KBB
reported.

“Despite the continued drop in fuel prices, the Nissan LEAF was the best
performing vehicle across all segments, appreciating 3 percent, or roughly
$300,” KBB analyst Sean Foyil said in the latest Blue Book Market Report.

“This rebound could be attributed to consumers now finding the current value
of electric vehicles more attractive at their current price point following
months of steady declines,” Foyil said.
[© autoremarketing.com]



http://www.cheatsheet.com/automobiles/why-cheap-oil-is-not-killing-electric-cars.html/?a=viewall
Why Cheap Oil Is Not Killing Electric Cars
February 02, 2016  Eric Schaal

[images  
http://www.cheatsheet.com/wp-content/uploads/2015/09/2016_nissan_leaf_07.jpg?504acc
2016_nissan_leaf_07  Source: Nissan

http://www.cheatsheet.com/wp-content/uploads/2015/10/GettyImages-486222318.jpg?504acc
BMW i3 Miles Willis/Getty Images
]

It’s no secret that standard hybrid cars have taken a beating since cheap
oil yielded cheap gas. Any markup on a vehicle to save a few miles per
gallon doesn’t make sense with gas below $2 in most U.S. states, and the
2015 sales charts reflect that problem with hybrid value. Electric vehicles
haven’t suffered the same fate. From exploding EV sales in Europe and China
to the steady churn in the U.S., the value and sustainability of electric
cars is saving them from a weak oil market.

Sales data from 2015 reveals the divergent fates of hybrids versus plug-in
vehicles in the U.S. All the major hybrids, including the Toyota Prius
family, saw declines in the U.S. market last year. Autoblog data for
alternative-fuel vehicles reveals big winners like the BMW i3, Volkswagen
e-Golf, and Tesla Model S — all of them pure electrics. Chevy Volt and
Nissan Leaf, two of the plug-in segment’s most popular models, saw declines
mainly due to their old model phase-out. Better sales are expected for 2016.

In Europe, EVs and plug-in hybrids saw an explosion in 2015 sales, with
Green Car Congress reporting an 80% increase through September, year over
year. Strong subsidies for electric models combined with higher fuel prices
helped the cause. The same can be said for China, where world EV sales
records were set in 2015.

Considering EVs are rarely cheaper than their gasoline equivalents, it’s
impossible to attribute the success of the plug-in market to purchase
incentives alone. Sustainability remains a huge factor for EV buyers, and
it’s easy to speculate they are considering the long-term value of an
electric car purchase as well. For the buyers flocking to U.S. dealerships
for new SUVs while gas is cheap, a rude awakening could be ahead in 2016.

In the last day of January trading, prices of crude oil rose to three-week
highs on the New York Mercantile Exchange. Anxiety from oil-producing
countries continues to cause speculation about production drops from members
of the OPEC cartel. Regardless of what happens, only a continuation of
record lows for oil will make SUV investments smart in the coming years.
That isn’t likely.

Electric vehicle drivers who depend on home chargers, some of them powered
by solar installations, can expect steady prices in the years ahead as they
charge car batteries. Furthermore, EV drivers of popular models can still
save about $2,500 over five years when compared to the average new vehicle
on sale in 2016. After subtracting $7,500 in tax credits and other
incentives from electric car MSRPs below $30,000, the investment looks like
a sound one from every angle.

As battery prices continue dropping and EV range gets longer, this trend
should continue in the U.S. and other regions where climate concerns are
intensifying. Electric cars are the greenest transportation option in the
U.S. by a wide margin, and even cheap oil hasn’t been able to make consumers
forget it. For those buyers of the Model S, America’s best-selling EV, oil
prices probably never crossed consumers’ minds.
[© cheatsheet.com]




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