27 Mar 24

What to think about when remarketing an (e-)LCV

Setting residual values for light commercial vehicles is even trickier than for passenger cars – and trickiest of all for e-LCVs. What do you need to be aware of? 

Setting the residual value (RV) for a light commercial vehicle (LCV) adds a few factors to the ones already in play for a car. For both, brand and model, age and mileage, options and trim level, the level of subsidies for electric models, and of course market demand are important considerations for the RV forecast. There are, however, some conditions that are of particular concern for remarketing an LCV:

  • Utility: LCVs are utilitarian vehicles, so their RV is strongly impacted by such factors as payload capacity, fuel efficiency, and reliability.
  • Niche value: some LCVs have specific purposes, such as refrigeration or as mobile workshops. This makes them more valuable – if they are linked to the right potential buyer profiles.
  • Wear and tear: LCVs generally have a harder life than passenger cars. This raises the importance of such factors as good maintenance records, dents and scratches on the exterior, and wear and tear of the interior. 

Complicating factors

Although there has been a marked increase in both the demand and the supply of electric LCVs (e-LCVs), the remarketing process for e-LCVs still needs to establish itself on a firm footing. Complicating factors are things like charging infrastructure (often not suited for LCVs), range (too limited for certain use cases), payload (typically smaller than for ICE LCVs), and battery degradation (important for cars, but crucial for tool vehicles like LCVs). 

Despite a small uptick in recent months, there is still a noticeable reluctance in the market to go for a used e-LCV – meaning that those that do get sold, need to be priced aggressively. As a result, used e-LCVs can be priced as much as 50% lower than their diesel counterparts, which of course is an important factor in their favour.

Add to that the spread of low-emission zones, increased emphasis on sustainable fleet management, and the fact that the range of use cases for e-LCVs is growing, and they will become increasingly normalized – new or used. 

From a fleet perspective, leasing e-LCVs, and outsourcing the remarketing risk, makes good sense. So says Voltia, a Slovakia-based e-LCV lessor that has helped over 100 customers since 2011. One of them is City Parcel, a DPD brand which wanted all deliveries across its 330 cities made with only e-LCVs. Here’s how they implementd e-LCVs in their fleet:

  • Three key goals: greater efficiency, price-competitiveness with diesel (or better), and implementation by 2025.  
  • The solution: a comprehensive deployment plan, which includes analysing present and future EV potential, designing charging infrastructure, and planning the procurement and rollout of the vehicles themselves. 
  • The result: 70% of City Parcel’s routes already had a positive profile for e-LCVs. Following seamless integration of the newest e-LCV models, the company looks to generate €3.3 million in savings in the first six years, and reducing CO2 emissions by more than 26,000 tons. 

Read more in our E-Book: Clean & Lean Commercial Fleets

Image: prijsm, CC BY-SA 4.0 DEED

Authored by: Frank Jacobs