Gap between list and real-world EV prices is slowing fleet adoption, warns FleetCheck

The growing gap between official list prices and the real-world cost of new electric vehicles is creating uncertainty for fleet operators and slowing the transition to electric mobility, according to FleetCheck.

The fleet software specialist says heavy manufacturer discounting and widespread pre-registration activity are making it increasingly difficult for businesses purchasing vehicles outright to judge whether they are receiving a competitive deal, particularly as manufacturers seek to meet the requirements of the Zero Emission Vehicle (ZEV) Mandate.

“Largely because of the ZEV Mandate, many manufacturers are making more electric cars and vans than buyers can accommodate, and subsequently having to discount them heavily – much more than would normally be seen for petrol or hybrid equivalents,” he said.

According to Golding, the traditional pricing structure comprising manufacturer list price, fleet discount and dealer forecourt pricing has become increasingly distorted.

“The situation is bad for cars but probably worse for light commercial vehicles, where demand for EVs is lower,” he said.

He pointed to the prevalence of heavily discounted pre-registered electric vans, noting that some were being offered at prices that bore little resemblance to their official list values. Temporary “spot deals”, where manufacturers seek to clear incoming stock through short-term discounts, were adding further volatility to the market.

For fleet operators, particularly small and medium-sized businesses embarking on electrification, the result is growing uncertainty over purchasing decisions.

“Of course, fleets expect a discount over list but the official price remains a reference point,” Golding said. “We regularly speak to operators – especially at the small and medium end of the fleet spectrum – who feel they don’t know whether the real-world price on offer for a particular EV is reasonable.”

He argued that while substantial discounts may appear attractive, the lack of confidence in the underlying list price makes it difficult for buyers to assess value.

“This situation hampers EV adoption because fleet decision makers are hesitant to push the button on acquisition when a much better deal might be available elsewhere or next week.”

FleetCheck also believes the pricing volatility is having knock-on effects for the leasing market, where unpredictable transaction prices are making residual value forecasting increasingly challenging.

Golding said that although leasing companies generally benefit from stronger purchasing power and more consistent pricing, the scale of discounts currently seen in the EV market contributes to weaker residual value performance.

“The kind of discounts and fluctuations being seen make residual value forecasts difficult and are one of the reasons they are so poor for EVs,” he said.

Looking ahead, FleetCheck believes manufacturers could help restore confidence by aligning official list prices more closely with actual transaction prices.

Golding acknowledged that list prices for electric vehicles have begun to fall as production costs decline but argued that significant disparities remain.

“There are examples of this starting to happen and list prices for EVs generally have fallen as the cost of making them has reduced. However, there are still far too many instances where the official figure is too far adrift to make any sense,” he said.