'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. 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