http://www.plugincars.com/group-purchase-programs-can-dramatically-boost-ev-adoption-131476.html
Group Purchase Programs Can Dramatically Boost EV Adoption
March 18, 2016  Brad Berman

[image  
http://www.plugincars.com/sites/default/files/colorado-ev-group-purchase-620.jpg
(bar chart)  EV sales growth from group purchasing program in Colorado
]

Last year, the Colorado counties of Boulder, Adams and Denver banded
together to offer discounted group purchase rates on solar panels and
electric vehicles. The group purchase program was the first of its kind for
EVs in the United States. Its promising results indicate that it shouldn’t
be the last.

Over the course of four months, a partnership between the counties and one
local Nissan dealership resulted in 248 Nissan LEAF sales—up from an average
of 52 for that period before the program. A similar program in Larimer
County netted 26 purchases per month, up from an average of just four. Even
more impressive is the fact that according to a survey of participants, just
28 percent said they had planned to buy an EV before hearing about the
program.

How it Works
When a large fleet purchases 200 vehicles, you can bet they’re paying a lot
less per car than an individual consumer. In some cases, a dealership might
be willing to sell vehicles at cost just to benefit from manufacturer volume
bonuses.

The Colorado program started with administrators putting out a call for
proposals from dealerships in the area. The winning proposal from Boulder
Nissan allowed area residents to purchase a LEAF at a $8,349 discount
between manufacturer and dealer volume incentives, bringing the purchase
price of a LEAF S to just $12,130 after state and federal tax credits. (The
SL dropped to just $14,780 and the SV to just $16,685.) The dealership also
threw in zero-percent financing for six years for customers with qualifying
credit, as well as two years of free access to DC fast-charging.

The deal brought the cost of a 2015 LEAF within range of the cheapest new
cars on the U.S. market, dramatically altering a cost-of-ownership equation
that has becomes less appealing with lower gas prices. By offering EVs with
such discounts, buyers were able to see immediate savings. The economics
become even more powerful when paired with discounted solar systems capable
of providing low-cost electricity for EVs.

Why Isn’t My County Doing This?
At a time when political pressure is being put on localities to cut
emissions, it’s a wonder that programs like the one in Colorado aren’t in
place elsewhere. Successful group purchase programs for solar energy have
been popping up nationwide since 2010, and unlike tax credits or purchase
rebates, these programs come at little cost to local governments. In fact,
by stimulating vehicle purchases and directing state and federal purchase
incentives to the area, the Colorado program brought home millions of
dollars in economic activity.

Could group purchase programs be a ray of light for the EV market at a time
when low gas sales are throttling down growth? We’ll get our next chance to
find out this spring, when Boulder County embarks on its next round of group
purchases. For more information about the program and a handbook written to
help others start their own group purchase programs, visit the Southwest
Energy Efficiency Project’s website [
http://www.swenergy.org/how-to-double-or-triple-electric-vehicle-sales-in-your-community
].  [© plugincars.com]




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