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CloseWhy lowering electric vehicle prices harms brand image and residual values
Learn more about how significant discounts on electric vehicles can have unintended consequences for your brand's image and long-term residual values, and how to prevent them.
MAINTAIN AND IMPROVE BRAND PERCEPTION
Learn how to track price cuts that negatively affect your brand’s image.
UNDERSTAND THE RESIDUAL VALUE RIPPLE EFFECT
Forecast the effect that discounts could have on your portfolio’s future residual values.
CREATE STABLE PRICE STRATEGIES
Determine the best strategy to create attractive and fair prices for maximum profit.
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How aggressive price cuts harm a luxury car brand’s image
As an OEM, cutting the prices of new EVs could damage the public’s perception of the vehicle’s value.
This can lead to a drop in demand for new and used models, decrease brand loyalty, and weaken the residual values of your other models.
You must price your vehicles accurately as going too low may reduce profits. However, overpricing may lead to longer selling times and the need for significant discounts, decreasing profits overall.
For market and pricing accuracy across your region, Glass’s provides and fulfils your KPIs for fast sales, high volumes and consumer desires. You will have access to live retail pricing and more in one easy place from any device.
Why residual values may decline due to heavy discounts
When reducing prices, you must consider the impact on car lease values. Choose cars with high resale values and low ownership costs to stay competitive without reducing profits.
Electric vehicles depreciate faster in the first few years, so be cautious with price cuts to avoid significant value decreases and financial losses.
Lowering prices may make the market unstable and create uncertainty about the future value of cars, which could pose financial risks for fleet and leasing companies.
To fully understand an EV’s future value, EV Volumes provides specialist electric vehicle volume and forecast data to ensure you are making the most of your investment. Click below to find out more.
How a good pricing strategy creates balanced competitiveness and maintains vehicle value
The electric vehicle market is growing, and new sales strategies are needed to stay competitive. Setting the right price for new vehicles is crucial for determining a model’s future resale value.
By developing new vehicles with features and services to make them more appealing, you are boosting desirability, and maintaining resale value.
If price cuts are necessary, apply them gradually and strategically. This prevents sudden drops in resale value and builds consumer trust, strengthening the brand and encouraging repeat business.
Accurate volume and forecast data are integral to creating an effective price strategy. With EV Volumes, you acquire leading tracking and forecasting data across 120 markets, which you can utilise today in just a few taps.