Electric Ford Transit Connect Struck By Killer Depreciation

Edward Niedermeyer
by Edward Niedermeyer

We have no wish to dampen enthusiasm for any new development in the light commercial vehicles sector but at this point the prospects for all-electric vans are fraught with difficulties, despite the clear operating advantages of using one for specific kinds of work

The Commercial Vehicle Monitor editor for the British residual value gurus at CAP, Tim Cattlin, tells Honest John that the new electric Azure Transit Connect has a few issues that fleet managers may want to look at before buying Britain’s first electric van. To wit:

The £39,999 van is expected to have a value of £8,000 after three years and 30,000 miles, with CAP explaining that uncertainty over the unproven technology and expensive batteries are the biggest issues.

That’s a 20% residual value after three years of driving 10,000 miles per year. Yikes! (Incidentally, if you drove the Transit for its entire 80 mile range every day for a year, you’d rack up about 30k miles in that year alone). The Azure Transit Connect is reportedly available in the US for $57,400, although Ford doesn’t list a price on its website and production is said to only be about 600-700 units this year. Meanwhile, Ford had better hope that the residual value issues aren’t linked to Azure’s technology (which uses Johnson Controls batteries), because it’s just announced a plug-in hybrid Super Duty Chassis Cab for 2013… with Azure as a partner and fleet businesses in mind. Better take a look at those projected residuals first, guys…

Edward Niedermeyer
Edward Niedermeyer

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  • Luke42 Luke42 on Jul 28, 2011

    Sweet, when and where can I buy an electric miniature van for £8,000?!? :-) Judging by the fact that I personally would pay more than £8,000 (even at a 2-1 exchange rate) for an electric Transit Connect with 30k miles on it in 2014, and I'm pretty moderate as Green Car enthusiasts go, I doubt that this number will hold when these machines actually hit the secondary market. About the only way that could change is if something cheap/durable/capable becomes available on the new EV market between now and 2014, and no such vehicle has been announced. The announcements all point to gradually decreasing prices and gradually increasing production numbers. If we're lucky, that will include gradually increasing range -- but, at this point, range will cost you. BTW, it's just fine with me if EVs remain niche vehicles for the next decade or two. They don't need to be all things to all people.

  • Eldard Eldard on Jul 28, 2011

    This would never have happened if it had a Honda badge.

  • Luke42 Luke42 on Jul 28, 2011

    @eldard: Right, because Honda isn't selling EVs...

    • See 2 previous
    • Eldard Eldard on Jul 28, 2011

      @eldard Why bother when they're now into jets? Something the Birch 3 can only dream of. :)

  • Otter Otter on Jul 28, 2011

    Tiredoldmechanic is right as far as private fleets go. I'm an engineer in fleet management for a large US city, and we will soon have a new contract for TCs, gas and electric. We won't be buying more than a handful - they're expensive, after all - but residuals after 3 years or, really, at all, are more or less irrelevant to us. The range limitations are not an issue in an environment where they stay within city limits (large as they are) and return home to a garage each day.

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