Vincentric Q3 2024 Fleet Cost Analysis: Ownership Costs Remain Steady Amid Shifts in Financing, Fuel, and Maintenance
Vincentric's Q3 2024 update on fleet cost-per-mile calculations, based on vehicles driven 20,000 miles per year for three years, shows that ownership costs remained largely flat. Most vehicle categories either saw a slight decrease or no change, with passenger cars and SUVs experiencing a decrease of approximately 1.5% and 1.1%, respectively. A steady decline in interest rates led to a 3% to 5% drop in financing costs, while lower fuel prices since June brought a similar decrease in fuel expenses. However, maintenance costs rose by 2% to 6% due to updated labor times and parts prices. Additionally, the ongoing integration of MY-25 vehicle data contributed to a slight increase in depreciation for most categories, except passenger cars.
September 2024 EV Market Update: Record Sales, Lower Prices, and Shifting Incentives
In September 2024, the average transaction price (ATP) for new electric vehicles (EVs) was $56,351, down 0.9% year over year and higher than the industry-wide ATP by about 16%, marking the lowest EV premium of the year. Incentive spending for EVs remained above the industry average, with September incentives averaging $6,904, or 12.3% of ATP, despite a slight decline from August. Tesla's average transaction price was up 13.6% year over year at $58,212, with lower prices for the Model 3 and Model Y but higher prices for the new Cybertruck, which averaged $116,706. EV sales reached record highs in Q3 2024, growing 11% year over year to 346,309 units, making up 8.9% of total vehicle sales. Incentives and discounts played a significant role in this growth, with leasing offering access to government-supported incentives. General Motors saw a 60% surge in EV sales, while Hyundai's sales remained flat, and Ford and Honda also reported strong performances in the EV market.
Key Factors Influencing Electric Vehicle Adoption Across U.S. States
Electric vehicle (EV) adoption is influenced by various external factors beyond an organization’s goal to reduce carbon emissions. In collaboration with Automotive Fleet, Inspiration Mobility analyzed six key factors that impact EV adoption by state: regulations, registrations, climate effects on range, fuel cost savings, incentives, and public charging availability. The analysis shows that states with Zero Emission Vehicle (ZEV) regulations, like California, Washington, and Oregon, lead in EV adoption due to stringent sales and fleet mandates. While California leads in EV registrations and offers all types of purchase incentives, other states like Hawaii and Arizona have high EV adoption despite fewer incentives. Climate significantly affects EV range, with cold temperatures causing up to 42% range loss for fleet vehicles. Fuel savings depend on the disparity between gas and electricity prices, rather than just electricity costs. California also leads in public fast charging availability, though some Midwest and Mountain West states rank highly in chargers per capita.