Consumer hesitancy over outright purchasing of EVs is part of why lease levels are so high, according to Alex Yurchenko, senior vice president of data science at Black Book, an analytics and insights company that helps auto lenders stress-test their portfolio for industry changes such as a recession or widespread electric vehicle adoption.
“Everyone expects lease penetration to be very high with electric vehicles at the beginning, much higher than we expect for luxury vehicles,” Yurchenko said. “That brings more risk to the captive.”
That’s because leasing is more expensive for automakers to incentivize, and for that reason, go-to-market strategies will vary among the captive lenders depending on the types of EVs they’re likely to finance, Yurchenko said.
Nonluxury brands are more likely to go for volume, he said, which means more emphasis on leasing incentives to increase penetration. Luxury brands will prioritize profits, and strategies will revolve around targeting the right…