With the rise in technology and forward thinking, electric cars are starting to make a solid footprint on the automobile industry. They have been around for ages, though. Look at history; one of the very first cars was electric. It was produced in 1934 while Andrew Jackson served as our 7th president. It did not gain traction because the technology was decades ahead of its time and therefore, too costly. Things are different now.
The Slow Rise of Electric Vehicles
Electric cars are making a difference, with cars like Tesla and the Chevy Volt already gaining a sizable portion of market share. Furthermore, Volvo is set to ditch gasoline completely and go all-electric by 2020. Countries like Sweden are dispensing with fossil fuels, and it seems that the rest of the world is starting to follow suit. Los Angeles’ transportation system is preparing to shift its entire 2,200-bus fleet to zero-emissions models by 2030. Other cities such as Dallas and New York are testing the market for electric buses. Limousine companies are also purchasing and borrowing to purchase electric cars. Incentives like income tax credits may encourage your members to finance an electric vehicle sooner than expected. Is your lending department ready for the automobile revolution? Be ready to help your members finance electric bikes, electric motorcycles, electric golf carts, electric cars, or electric boats.
Why Gas Vehicles are King for Now
As of now, traditional automobiles still remain in control. Electric cars have a few years to go before they become a mainstay in the marketplace. Most owners prefer to lease them, since the technology improves every few years. For instance, battery life is extended every year between 5-10 miles. Once the technology evens out, expect buyers to seek more traditional financing for electric vehicles. It does them no good to finance a vehicle that will be obsolete in terms of efficiency two years down the road. Millennials and other generations have a choice to make.
This is the same type of mindset we use when purchasing our smartphones. The technology changes so rapidly that purchasing one outright makes little sense. It's easier to upgrade every few years to the latest model. And to think, we are just talking about electric cars. Driverless vehicles have not even entered the discussion yet!
Forms to Fit Any Vehicle
Is your credit union ready with compliant forms as new finance terms become available? Does your forms and disclosures package keep pace with incentives, tax cuts, and any new regulations that may come down the pike as they relate to all electric vehicles? Offer your members applications that meet member demands and follow regulatory changes.
When regulatory changes come, rest assured, we will be here. Whether your member needs financing for a gas, electric, or hybrid car, our forms and disclosures are the answer. Fully compliant, easy to use, multiple delivery methods, and able to integrate on any data platform, Oak Tree Business Systems is the answer for quality forms and disclosures. Contact us today and see how our forms can help you with automobile lending. Thank you for your business. We look forward to speaking with you.