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Some cars will be virtually impossible to sell or require large price reductions. Some car brands may disappear. Electric cars are more exposed than fossil cars. See what you can do to avoid losing tens of thousands of dollars.
This is a discussion post. Express the views of the writer.
With a number of new electric car brands on the market in the coming years, we think it’s pretty certain that not everyone will be successful.
It is equally certain that established brands will see their customers’ loyalty tested as the many new brands compete more and more on price, service, and everything else they can think of.
Also read: If this repeats itself, then the electric car market will collapse
They want to enter the market, and a place where customers must come from. It is mainly from China that new car brands come from, but also in the US Various new car brands are popping up.
This is a major reason why we are entering a new era in which many things will be different, perhaps dramatically different, as we wrote a few weeks ago.
Professional advice
Is it worth paying a little more to keep your brand old and safe, or is the new and the unknown really that good and safe if you put your feelings aside?
If it’s hard for you to tell, one piece of advice might be to look at what professional companies like LeasePlan think. You will discover this if you look at the lease price in relation to the purchase price of the car. If the car is “expensive” to rent relative to what it costs to buy, it is a sign that we believe the car is expensive to operate, loses a lot of value, or that there is another form of risk.
Here you can read more publications of Marius Paus.
The suggestion is this: look at the total lease price for all months, including lump sums divided by the purchase price, and compare the cars you are considering. The lower the number, the safer we think it is, because when you rent, it is we who buy the car and take the risk.
The lie of life
We have gotten used to brands like Volkswagen, Mercedes, Ford and many more being always there, and we don’t think they are not always there.
There is no danger with the brands mentioned, but the very idea that everything is going to last is a lie of life that we should all get rid of.
It can be comfortable to think that everything works, but it can also be expensive. Uncertainty about the future of a car brand, access to spare parts, etc. It can cause used car prices to drop quickly by tens of thousands of crowns or make the car almost impossible to sell.
Also read: Tesla started this: – It can be dramatic
What do you do, for example, when your new car due to a manufacturing defect is, for example, flammable and there is no longer a dealer or importer to talk to? This is a current example. Those who drive these cars know what I’m talking about.
The advantage of this you can get if you buy the used car at the reduced price and preferably you keep the car until you drive it for recycling.
Confusing brand loyalty
When Tesla arrived with his cars, customers flocked there, far from where they were. When Audi came later with its e-tron, Mercedes with its EQC, and VW more recently with its ID.3, to name a few, customers flocked there.
Surely many of the same ones who left a few years earlier. Some will probably say that it shows that customers are loyal to your brand, as long as the brand can deliver what they want.
Others will say that clients go to those who at any given moment have what best suits the client. That the return of customers is not a sign of loyalty, but that you have regained the correct product / price combination.
When the Opel Ampera arrived in Norway, it had an unbeatable combination of range and price. Customers sat on the waiting list for over a year. Problems at the factory caused the cars to be delayed, other cars hit the market and when they finally arrived, no one wanted them. The customers were gone.
We believe that many customers are much less loyal to a brand than most brand managers like to think.
Also read: Charging can make electric car use more expensive
That is now the case
The Internet has made the world transparent and immediate. We believe that if you are not “best in class” at that time, there is no mercy.
The client doesn’t care if you were the best last year. It is the “now” that applies.
Customer expectations are rising, and if you don’t keep up, it quickly becomes “game over.”
We experience that to keep our customers loyal to us, we must constantly exceed customer expectations and at every opportunity. We do not have this from any textbook or scientific study, it is more common sense and an observation based on daily contact with small and large clients.
Nettavisen Pluss: Test: Volvo XC40 Recharge Pure Electric P8
It’s not that it’s always that easy. At LeasePlan we invest enormous resources in, for example, digitization in order to be at the forefront of all automotive-related services. And to keep costs down. Customers are demanding. They want a good, unique product and an affordable price.
Feelings
There is a lot of protection in emotions for a brand. Create a strange paradox. We easily replace most brands. Some of us doubt. Perhaps the clearest thing is with the football fans who support the team anyway. Or within the family, which we also support anyway.
Nettavisen Pluss: Test: Audi e-Tron S 60 Sportback
A more relevant example could be a mobile phone. It was easy to switch from Nokia to Blackberry, and it was easy to switch to iPhone, but I admit it would be a long way to go now to switch to something else. Apple has made me a loyal customer. We do our best to be just as good to our clients.
Cars are many emotions to many and they are incredibly important.
If you have 1 minute and 45 seconds left, I can recommend the video “A thank you to the car”.
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