IT IS SAID that every journey starts with the first step, but in the case of the electric car here in Ireland there has been quite a degree of hesitancy on the part of the consumer to take it.
Just 36 electric cars were registered in Ireland by the end of last month. Early next year, Renault will offer the Fluence ZE for €21,620, which includes a €5,000 Government grant. This makes it the same price as the Fluence diesel. Users will lease the battery rather than buying it as part of the car. This will cost €79 per month based on 15,000km per year over four years.
There are different opinions as to which is the best route to take when it comes to leasing the battery. “You are still paying less for the battery rental than you would paying for the battery,” says Renault Ireland’s managing director Eric Basset. Renault says leasing the battery allows the user to be able to move with the technology and will keep residuals strong.
With more than 100,000 users of gas and electricity running into arrears with their bills, however, would the prospect of buyers defaulting on their battery lease lead to repossession of the car battery?
“We will be handling each application carefully and are aware of the potential for this to be an issue but we will be looking at all of our finance customers very carefully in advance,” says Sandra Rea of Renault Ireland.
So is leasing the right approach when it comes to handling this technology? Mitsubishi, like Nissan, opted to sell the car as a whole. “Leasing the batteries was not an option we considered as we feel that outright purchase is the most appropriate sales model,” says Gavin Flood of Mitsubishi Motors, which sells the all-electric i-Miev supermini.
What about Nissan? “With a completely new concept such as the Leaf, there is not necessarily a right or wrong way to approach the provision of the battery,” says Peter Dynan of Nissan Ireland. “This issue was extensively researched before launch with the motor trade and finance houses. We concluded that as the majority of customers purchase their cars, the total ownership route was the preferred one for us. Irish customers want to feel that they own the car completely when it is finally paid for.
“That said, we are keeping the concept of leasing the battery under review and if there is demand we will move to offer this alternative for our customers.”
With next year seeing the arrival of the Fluence ZE, Opel’s clever range-extender Ampera, Toyota’s Prius plug-in and proper supply of the Nissan Leaf, it will be an important year for the electric car here. Given Renault’s success and aggression in tackling the mainstream market in the recent past, we can be fairly certain it will do the same in the electric market.