The Renault Zoe falls short in the sales charts all over Europe. What happens? We have hypothesized a new commercial policy for number one Luca De Meo, oriented towards profit margins rather than volumes. Professor Alessandro Abbotto is of the same idea and tells his direct experience. He gave up replacing his “old” Zoe after discovering in the field that the new model would cost him 7,000 euros more in the three years. Here are his calculations and his comment.
by Alessandro Abbotto
I am the proud owner of an old model Renault Zoe and, near the expiry of the three-year loan, I became interested in the dealer network to switch to the new model, also taking advantage of regional incentives. Here is the story of my direct experience.
The Renault Zoe 52 kWh between price, discounts and incentives
My current Renault Zoe (Intens R110 flex, with rental battery) started from a list price of € 28,000 which, with accessories and taxes, came to € 28,880. The concessionary discount (€ 6,380) and the state incentive, which at the time was “only” € 4,000, must be deducted from this amount, for a final price of € 18,500, distributed as follows: € 5,000 of the initial amount, 36 installments from € 196 including insurance (except RCA), monthly battery charge € 39 and guaranteed future value of € 10,080.
Very satisfied with the car, I went to the dealer to get a quote on the new Zoe model (set up equivalent to the previous one). These are the amounts for the Zoe Intens R135 (in brackets the comparison with the previous situation):
– list price: € 38,000 (€ 28,000 with rental battery)
– price with accessories and taxes: € 38,382 (€ 28,880)
– dealer discount: € 4,500 (€ 6,380)
-incentives (state + regional): € 9,000 (€ 4,000)
– Final net amount: € 24,882 (€ 18,500).
The Renault Zoe now has its own battery
Here is the first conclusion. Although the incentives have gone from € 4,000 to € 9,000, the final net amount has increased by over € 6,000. It is true that in the new case the battery is owned. So let’s go and see the new monthly installment and compare it with the previous one added to the monthly battery charge. Initial amount € 2,000 (€ 5,000 the first time), 36 installments of € 383 (including insurance), VFG € 14,250.
Is this an affordable offer, taking into account that the battery is now owned?
–In the first case the full outlay for the duration of 3 years is: € 5,000 (initial amount) + € 36 × 196 + € 36 × 39 (battery) = € 13,460.
–In the second case: € 2,000 (initial amount) + € 36 x 383 = € 15,788.
In conclusion, despite € 5,000 of additional net incentives, the three-year outlay has increased by over € 2,000. For a net increase compared to the previous model of over € 7,000, at the same cost for the battery!
Incentives must benefit the buyer
Then, I confirm the conclusions of the article by Vaielettrico. Based on my personal experience, Renault has decided to change its strategy by focusing more on unit gains than on volumes. Pay? At least in my case, as a potential client, no. The difference in excess of € 7,000 is, in my opinion, too much for a city car. I therefore decided not to buy the new Zoe, with regret.
I conclude with a comment. I fear that the idea is spreading that i more incentives
represent a pretext to increase the price actual sales of electric cars. It’s not just the case with Zoe. In my opinion this is a mistake. The prices of cars should remain constant (some do and, indeed, in some cases decrease), considering that we should not take advantage of the incentives to increase prices “because so much is compensated by the higher incentives”.
Prices must remain competitive, incentive or not
The incentives are money that goes into the pockets of houses automotive and sales network. There is no need to increase the price (or decrease the discounts that are usually given). Above all, they are an excellent, unrepeatable opportunity to run this industry, severely affected by the pandemic crisis, and to innovate the very old park.
Italian automobile, more than 99.9% fossil fuel based. Here because I do not agree with the strategy of the French company. Which, on the other hand, should have taken advantage of the greater incentives offered by the Italian state and local authorities to reduce prices, propose its electric model at advantageous and highly competitive prices. And so significantly increase sales volumes, for the benefit of all, producers / sellers, citizens and the environment.
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