Leasing an i3 in the UK with electricity included

[TrevorLarkum]

I have had a Renault ZOE for more than a year (and blogged about it at MyRenaultZoe.com) and become a dyed-in-the-wool EV evangelist (or 'EV bore' to my family) but I'd like to do more. Since about Christmas I've been thinking about how I could get more involved in 'spreading the faith'. In particular I've been working on a business idea for a UK company specialising in leasing electric cars to the public (PHEVs and BEVs). Although I'm a huge fan of the ZOE, numbers wise I suspect most customers will be interested in the Leaf, i3 and Mitsubishi Outlander.

The 'unique selling point' would be that electricity would be included in the monthly cost, just like you get so many minutes in your mobile phone contract. With matching the right car to the customer, this means that commuting becomes free - I think this will be a big selling point.

I have found a company that can put together a suitable website, and will go ahead with the idea in some form. However, I would be interested in any feedback and comments from existing i3 owners, particularly those who have leased and whether having electricity included in the monthly cost would have been attractive. I also think there's simply a gap for a UK website that gives comparative information on the various plugins that are currently on the market or are coming soon.

Longer term the business will diversify to offer solar panels, home battery storage, etc. to its drivers. For example, a solar panel installation could be done for about £150 per month added to the car lease cost.

[Note to moderators: if you think this discussion is too commerical, just say the word]

 

[MikeS]

As I produce my own electricity via PV then no.

 

[jackt]

In terms of the i3 on a practical front its most likely to make an expensive lease look even more expensive...

But in any case current ofgem rules mean only utilities companies can bill in kWh, so that leaves you with effectively adding a savings account to your lease that you can they use yourself to pay a portion of your bills. It doesn't seem to add much benefit really.

If it was possible for billing by kWh and the lease include X kWh across your home charge point or public charge points each year, then there might be some mileage to that idea. But that seems like a pipe dream in the face of regulatory pressure and logistics of collecting accurate data etc etc.

The adding on PV is probably more interesting to me anyway, Tesla do this in the US via SolarCity Elon's other company.

 

[noakey]

A neat idea to have a multi ev manufacture/ model leasing business... but I don't think the free power bit will make much difference to your deal attractivness as one of the major draws of an ev is tiny fuel costs in comparison to an ice.

One thing that would be neat is for the ev to be supplied with all the charge point cards and accounts all set up ready to go.

 

[TrevorLarkum]

Thanks guys for the feedback - much appreciated.

As I produce my own electricity via PV then no.

Fair enough - you won't be in my target market! Having said that, I've got solar but can only use it at weekends, since i'm commuting during the week, so maybe it will still be attractive for many solar owners.

In terms of the i3 on a practical front its most likely to make an expensive lease look even more expensive...

True, but I'm expecting/hoping the leases will go down once the 'early adopters' have their cars.

But in any case current ofgem rules mean only utilities companies can bill in kWh, so that leaves you with effectively adding a savings account to your lease that you can they use yourself to pay a portion of your bills. It doesn't seem to add much benefit really.

I'm not sure there's an issue. Firstly, I'm refunding the cost of the actual electricity used against an estimated amount in the lease. And anyway, I think the restriction is on charging more than the commercial rate which I wouldn't necessarily want to do (it was enacted to stop landlords overcharge, IIRC).

A neat idea to have a multi ev manufacture/ model leasing business... but I don't think the free power bit will make much difference to your deal attractivness as one of the major draws of an ev is tiny fuel costs in comparison to an ice.

One thing that would be neat is for the ev to be supplied with all the charge point cards and accounts all set up ready to go.

I think you're getting it. And I think the power bit is important to people moving from conventional cars and see it all as a great unknown, not for people who already have an EV and take notice of their electricity bills.

The bottom line is that I believe the general public (not you keen early adopters) will be attracted to a sales model that feels familiar based on the success of selling mobile phones. But I agree it will be interesting to see if I've read it wrong.

 

[PipPip]

I get my i3 in a few weeks. Your idea might have been of interest although would have been a mistake for me. My employer told me on Friday that they are installing free charge points in the office car park, ie. my cars fuel is now to be free. No idea if this is or will become common though.

 

[elptex]

I get my i3 in a few weeks. Your idea might have been of interest although would have been a mistake for me. My employer told me on Friday that they are installing free charge points in the office car park, ie. my cars fuel is now to be free. No idea if this is or will become common though.

My company is doing the same thing. In a few months, my 'fuel' costs is free to me.

 

[TrevorLarkum]

That's great news if you can do all your charging at work. I'm a big fan of workplace charging, but I would expect most people would still be interested in having all their home charging included in the monthly lease price, with the workplace charging as a bonus extra.

 

[TrevorLarkum]

I've 'taken the plunge' and put together a first go at the website - let me know what you think:

FuelIncluded.com

- it's not yet complete, of course, I'll be adding more information on the benefits of EVs (cost savings, tech, carbon footprint, etc.) but would be interested in your feedback on my efforts so far.

The Best Deals link goes to an area with the EV leasing deals - deals.fuelincluded.com. Currently it's a bit thin (no i3s, I know!) but I'll work on that once the main site seems workable. Currently the Outlander deals include the electricity, just to give an idea of costs, but I've yet to do the necessary calcs for the other cars.

I'd be interested to learn of any good and bad experiences with BMW dealers for i3s that you've had, so I know who to contact for deals (and who to avoid!).

 

[pastyboy]

I've 'taken the plunge' and put together a first go at the website - let me know what you think:

FuelIncluded.com

- it's not yet complete, of course, I'll be adding more information on the benefits of EVs (cost savings, tech, carbon footprint, etc.) but would be interested in your feedback on my efforts so far.

The Best Deals link goes to an area with the EV leasing deals - deals.fuelincluded.com. Currently it's a bit thin (no i3s, I know!) but I'll work on that once the main site seems workable. Currently the Outlander deals include the electricity, just to give an idea of costs, but I've yet to do the necessary calcs for the other cars.

I'd be interested to learn of any good and bad experiences with BMW dealers for i3s that you've had, so I know who to contact for deals (and who to avoid!).

I have a Rex (all of the extras except ACC, upgraded interior and LED lights) on contract purchase through my own company. I reckon the fuel costs for £10,000 miles a year will be in the order of £35/month so anything more than this would not be of interest to me. I also have PV on the roof and so in the summer months I get a proportion of my electricity from the panels, so probably would not be interested in the fuel included rate. Also, you estimate you will do 10,000 miles but might do 8,000, or 12,000 so including the fuel cost if you don't do the mileage is not attractive. However, it is good that people are trying to promote EV's and I wish you luck. You could speak to Scott at Dick Lovett in Bristol - he has been putting some deals together for others on multiple purchases, including i8 (lucky people).

 

[TrevorLarkum]

pastyboy, thanks for the comments.

I reckon the fuel costs for £10,000 miles a year will be in the order of £35/month

Yes, I'm working on £35 for 2014, £37 for 2015, £40 for 2016, and £44 for 2017.

Also, you estimate you will do 10,000 miles but might do 8,000, or 12,000 so including the fuel cost if you don't do the mileage is not attractive.

That's basically true for any lease, if you go under the mileage you've lost out, if you go over it you pay an additional charge. The mileage element is no different, but only amounts to about 10% of the total lease cost.

You could speak to Scott at Dick Lovett in Bristol - he has been putting some deals together for others on multiple purchases

I've made a note of Scott at Dick Lovett, and will contact him when I get my first i3 enquiry.

However, it is good that people are trying to promote EV's and I wish you luck.

Thanks! I think we all know that EVs are the way ahead, and that the hard part is just getting the vast majority of the public to try one. I would certainly not go back to a combustion car.