With the advent of electric vehicles (EVs), a lot of people are turning towards this more environmentally friendly, efficient option over traditional fuel dependent cars. However, is it a smart business strategy for rental companies to implement?
Navotar has compiled a list of pros and cons of purchasing EVs for your rental fleet, keep reading to find out.
Electric cars do not use fuel! That will help you save up a lot on fuel costs compared with fuel-dependent vehicles – all you need to do is to build a charging station.Also, no fuel means fewer emissions which is great for the environment and will help you reduce your carbon footprint.
Compared to cars with internal combustion engines, EVs require less maintenance as they do not have many moving parts. Also, electric cars don’t need frequent oil changes and, brakes are known to last longer due to regenerative braking resulting in less wear and tear.
EVs are eco-friendly therefore, companies that offer these vehicles in their line-up will have a competitive edge. Nowadays, customers are more aware of environmental issues and strive to reduce their carbon footprint, which means they will opt for eco-focused businesses.
A model for everyone
While, yes, most EVs are on the higher end of the price spectrum, there are budget range models. Having a variety of cars available in your rental fleet will allow you to have a wider reach as it will cater to the likes of many customers of varying financial backgrounds. It will also help make your company look more accessible to people hence increasing revenue.
From saving on fuel and maintenance charges you also have the added advantage of Tax Credits! You read that correctly, some governments pay people for purchasing an electric vehicle! That is how important it is to practice ethical, environmentally conscious business. This will also help curb the steep price tag of your electric car.
Brand new electric cars can be very expensive, which is one of the major drawbacks of EVs. However, they have quite a good re-sell market and you can easily purchase a second-hand vehicle, in good condition for a good price – then and again the re-sell market place comes with its own set of horrors.
Battery charge duration
Now here’s the biggest bummer with EVs. Unlike fuel dependent cars EVs aren’t very reliable when it comes to range. The charge will reduce the faster you go, so even if EVs can do speed more than a normal car, you have the risk of running low on juice. However, if you drive slow you can save up energy and have a greater range – maybe even double the predicted range!
There can be a scarcity in recharge stations depending on where the customer wants to head to, this can pose a problem. However, countries like Norway and the USA have become very EV friendly and have taken steps to ensure that there are ample EV charging stations around the country.
Extreme weather conditions
EVs are more sensitive to extreme weather changes than their fuel-dependent counterparts which are extremely fuel-efficient despite extreme hot or cold weather. Extreme hot or cold weather can cause the capacity of the electric car battery to reduce which leads to the battery getting heated up resulting in more battery usage.
Very long charging time
It takes 12 hours to charge an electric car battery unless it is getting charged overnight there is no issue. However, if you or the customer needs to get the battery charged quickly there will be problems – unless you have a DC fast charging station or the customer is within the vicinity of one.
Are electric cars a good investment for your business? There are definitely more reasons to like EVs and, maybe incorporate them into your rental business as the future is only getting greener. A chance to show your customers that you are an environmentally conscious business will definitely make you standout above your competition; however, there is a lot of work to be done if you want to include electric cars into your fleet.
Navotar wishes you the best of luck with your rental business!