Don't Expect Big Demand, Auto Expert Suggests

Register now

HAUPPAUGE, N.Y.-CUs should not expect a great deal of demand for loans for the new electric vehicles until manufacturers pull back incentives, according to one analyst, who does not see that happening for a few years.

GrooveCar President David Jacobson said limited supplies and manufacturer deals for cars like the Volt, Leaf, and Focus EV, will not place a CU or a bank in a position to finance many of these vehicles early on. "For the Volt, GM may come up with a $10,000 rebate and place a special residual value that only they will be able to support, since they will take the risk. Wanting to drive consumer demand for technology that people are somewhat wary about, manufacturers will give a monthly payment to consumers that no one else will be able to touch."

Especially when it comes to leasing, Jacobson added, an attractive option for the high-tech cars that can have a $40,000-plus sticker before incentives and government rebates.

For reprint and licensing requests for this article, click here.