In light of the latest figures released by the SMMT, which reveal a growth in alternative fuel vehicles of more than 72% in the past year alone, Alphabet argues that residual value forecasting must be brought to the top of the agenda.
Head of asset risk at Alphabet Jim McNally says: “Residual value calculations can be a barrier for prospective customers of alternative fuel vehicles.
“Although uptake of EVs is increasing, they are only a small percentage of the total car parc and the corporate market is not driving the update of EVs as strongly as perhaps it should.
“At Alphabet, we have offered electric and hybrid vehicles as part of our fleet solutions for a number of years, most recently unveiling the AlphaElectric consultancy at the end of 2013. As such, we understand the hesitation of fleet managers to step into the unknown.
“While a great deal of insight is required to effectively set alternative fuel vehicle residual values, the strong registration figures announced by the SMMT mean that data is only set to improve and we will build a more detailed picture of the usage of these vehicles.
“Alphabet has invested in increased analysis of elements relating to plug-in vehicles in its competitive rate-setting system.
“Our belief in electric vehicles drives the risk that comes with holding a market-leading position on EVs. The focus is on ensuring that customers have complete transparency of their fleet offer and the future return on their investment.”
Jon Burdekin, head of consultancy services, adds: “The future uptake of electric vehicles is set to rise rapidly thanks to continual innovation, a focus on performance, driver experience and a cash injection of £500 million from the UK Government from 2015-2020.
“However, it is imperative that buyers are able to secure a competitive rate in what can be a challenging environment.
“At Alphabet, we are committed to providing clarity to this complex market and offering some of the best residual values due to our knowledge, investment and understanding of this ever-evolving sector.
“An increasing share of the corporate environment is discovering that electric vehicles can work for their drivers.
“Our proactive and supportive stance on the residual value risk strategy is enabling more people to discover the benefits that electric vehicles can bring.”
The AlphaElectric consultancy, launched in the latter part of last year, provides a four stage process to support customers in their evaluation process, implementation and subsequent after care.
The stages include: fleet analysis, vehicle selection, charging solutions, add on mobility packages for longer journeys, and driver support.