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Hello and welcome. 
You are listening to Patrick 

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Boyle on Finance, a podcast 
exploring ideas from 

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quantitative finance, examining 
events occurring in markets 

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right now and financial history 
to see what lessons can be taken

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away, including interviews with 
some of the most interesting 

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people in the world of finance. 
To learn more about the podcast,

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visit on finance.org. 7 million 
electric vehicles were sold 

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globally in the first half of 
2024, which is 20% growth over 

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the same period in 2023. 
Only 1.5 million of those sales 

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were in Europe, according to the
research firm Row Motion, which 

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amounts to only 1% growth 
compared to the same period in 

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2023. 
While growth was positive in 

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Italy, France and the UK where 
their strong government EV 

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incentives, EV sales in Germany,
the the largest passenger car 

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market in Europe, fell by 18% in
the second quarter of 2024. 

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EV sales in the United States 
grew by 10%, which sounds OK, 

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but these statistics include 
plug in hybrid vehicles. 

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And according to PwC, much like 
in Europe, most of the sales 

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growth seen this year can be 
explained by growth in hybrid 

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sales, which grew by 28% year on
year in the United States. 

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So where did the 20% global 
growth come from then? 

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Well, mostly from China, where 
EV sales grew 30% in the first 

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half of 2024. 
But once again that figure 

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includes plug in hybrids. 
And plug in hybrids have seen a 

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surge in sales in China, where 
60% of the E VS sold by BYD were

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actually hybrids. 
EV manufacturers who are priced 

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for massive growth don't appear 
to be growing, and the problem 

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may be that most car buyers 
don't want an electric vehicle. 

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An interesting data point is 
that the markets where EVs have 

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traditionally done best are 
showing the sharpest downturn in

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sales. 
According to the LA Times, 

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electric vehicle sales growth in
California began trending down 

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this time last year and now has 
turned -1.2% fewer all electric 

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cars were registered in the 
state in the second quarter of 

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this year compared to the same 
quarter last year. 

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Tesla, which is still by far the
EV sales leader in California, 

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was hardest hit by this 
downturn, with their sales 

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falling by almost a quarter. 
According to Kelley Blue Book, 

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Tesla sales in the United States
overall fell 6.3% for the second

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quarter of 2024, even as total 
EV sales climbed 7.3%. 

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Some of this can be explained by
increased competition, as almost

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every automaker now has an EV 
available in the United States, 

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and some of the drop can be 
explained by a lack of new 

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models out of Tesla, other than 
the Cyber Truck, which sold 

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around 12,000 units over the 
period in question. 

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Automakers are responding to 
this sluggish growth by backing 

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away from their EV targets. 
Volvo, which is majority owned 

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by Geely, China's third largest 
automaker, scrapped its plans 

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last week of going all electric 
by 20-30. 

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Volvo had been the first legacy 
automaker to make this 

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commitment. 
Ford had made a similar 

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commitment for Europe, which 
they have since walked away 

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from. 
Toyota, who launched their first

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all electric vehicle earlier 
this year, is now reported to be

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scaling back its planned 
increase in battery electric 

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vehicle production in line with 
their long standing multi 

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pathway strategy of matching 
powertrain technology to actual 

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public demand. 
Volkswagen, Nissan and Hyundai 

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have all announced earlier this 
year that they would focus on 

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hybrids due to the decline in 
consumer demand for full 

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electric vehicles in major 
markets. 

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Dealers who've been stuck with 
difficult to sell EVs say that 

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sluggish sales can partially be 
blamed on a lack of affordable 

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models, the slow roll out of 
charging stations and terrible 

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resale values on used EVs. 
To a large extent, electric 

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vehicle sales have been a 
function of government incentive

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schemes. 
Italy provides an interesting 

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example, where the country saw a
record for EV sales this June 

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with almost 20,000 EV sold 
following the release of the 

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government incentive scheme. 
The scheme was so popular that 

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it ran out of funds within hours
of being released. 

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Despite this, sales of battery 
electric vehicles in Italy have 

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fallen by 11% so far this year. 
The 18% decline in German 

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battery electric vehicle sales 
in the first half of 2024 is 

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attributed to the sudden removal
of purchase subsidies. 

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The German Economy Ministry had 
to halt the seven-year Incentive

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scheme last November when the 
German government froze major 

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spending pledges focused on 
green initiatives after a 

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constitutional court ruled that 
the spending was incompatible 

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with the constitutional debt 
break, which restricts annual 

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structural deficits to 0.35% of 
GDP. 

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Worse yet for EV manufacturers, 
a recent report from McKinsey 

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shows that many early adopting 
EV owners now plan on switching 

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back to an internal combustion 
car on their next purchase. 

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According to market research 
from McKinsey, 46% of American 

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Electric vehicle owners claimed 
that they were likely to switch 

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back to conventional vehicles 
with their next purchase. 

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Looking at the chart from 
McKinsey, it would appear that 

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the urge to switch back to ICE 
vehicles seems to be greatest in

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countries like Australia, the 
United States and Brazil where 

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car owners are more likely to 
take longer car journeys. 

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Looking at the reasons that EV 
owners gave for wanting to 

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switch back to combustion 
vehicles, they mostly seem to 

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relate to difficulties charging,
with only 13% saying that they 

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didn't like the driving 
experience. 

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The McKinsey data is backed up 
with real world data from 

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Edmunds, who found that in the 
last quarter, almost 40% of the 

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EVs that were traded in at a 
dealership were used to purchase

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or lease a new ICE vehicle. 
A huge issue for early EV 

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adopters has been the extreme 
depreciation that they've 

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experienced with their cars. 
I made a video a while ago about

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the terrible resale values of 
used EVs and the situation seems

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to have only gotten worse. 
Car Wow analyzed the resale 

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value of a one year old low 
mileage EV today and compared it

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to the price of a one year old 
low mileage EV at the same time 

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last year. 
So comparing one year old cars 

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to one year year old cars one 
year apart, you might expect the

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prices to be somewhat stable. 
They found that many were down 

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between 25 and 30% over that 
period. 

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An example would be the Audi E 
Tron where comparable used cars 

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were worth 27% less in 2024 than
in 2023. 

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They compared that to the Audi 
A7 diesel which was down only 

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2.7% over the same period. 
Now used cars in general had 

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been a bit pumped up in 2023 as 
due to supply issues it was 

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still difficult to buy a used 
car back then. 

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But the electric cars they 
looked at had fallen in value 

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significantly more than 
equivalent petrol and diesel 

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cars. 
Meaning that if you had stepped 

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in and bought what looked like a
cheap used EV last year, you 

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still took a further massive 
depreciation hit on it as buyers

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are even more wary of them today
than they were a year ago. 

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In the video I made about the 
terrible resale values of EVs, 

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one of the top comments was that
in the same way that you 

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wouldn't buy a used laptop or a 
used mobile phone, you wouldn't 

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buy a used EV. 
When the majority of the value 

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of a product is in its battery, 
no one wants to buy it second 

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hand. 
Now, maybe that will change over

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time time, but that does appear 
to be the situation today. 

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A study by the Energy Policy 
Institute at the University of 

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Chicago found that 77% of survey
respondents cited a lack of 

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charging infrastructure as a 
reason for not buying an EV, 

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second only to the high upfront 
cost. 

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Other reasons that people 
dislike buying EVs is that 

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they're expensive to insure, as 
insurance companies write them 

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off after small accidents for 
fear that the battery's been 

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damaged. 
Car buyers also worry about the 

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fire risk of charging an EV in 
their garage. 

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All of the research that I've 
found shows that EVs don't pose 

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any more of a fire risk than 
petrol vehicles do, but there is

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the issue that once they do 
catch fire, they're very 

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difficult to extinguish. 
Last month, an electric semi 

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which caught fire in California 
was all over the news as it 

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burned for several hours, 
causing a full closure of the 

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freeway. 
The Highway Patrol said that the

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crash had created a hazardous 
material situation due to the 

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toxic fumes released from the 
burning battery. 

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I'm told that electric semis are
mostly used to transport potato 

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chips, which are probably quite 
flammable too. 

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News like this does not help to 
sell EVs, whether they are a 

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fire risk or not. 
The recent news about Israel 

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remotely exploding pagers, 
walkie talkies and mobile phones

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used by Hezbollah in Lebanon 
will do nothing to reduce this 

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fear either. 
At present, it's unclear if 

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these were specially 
manufactured devices that 

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contained explosives or if the 
batteries themselves detonated. 

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A friend said to me after 
reading about the attacks, if 

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this is to be the future of 
warfare, you really don't want 

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an EV parked in your garage 
overnight and a phone charging 

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next to your bed in the event of
a new conflict. 

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In a recent podcast, Doug Demuro
argued that electric vehicles 

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are desired by a good percentage
of the population, but not the 

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percentage of the population 
that people taught wanted them a

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few years ago. 
According to the McKinsey 

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report, EV buyers tend to be 
wealthy urban dwellers who are 

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significantly younger than the 
average car buyer. 

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Fire. 
Importantly, 84% of the people 

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who said that they would 
consider buying an EV also said 

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that they would be able to 
charge the car at home. 

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Less than half of Americans have
access to an off street parking 

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spot, and not every off street 
parking spot has access to 

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electricity, making home 
charging impractical for a large

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percentage of the population. 
Well, I recognize that home 

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charging is really practical for
many people. 

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Some sort of charging solution 
will be needed before we're 

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likely to see mass adoption, 
especially when we know that 

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fast chargers are bad for 
batteries and they're difficult 

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to get access to in big cities 
where a lot of potential buyers 

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exist. 
The car companies like Volvo and

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Ford who made these big 
commitments to transition to 

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100% EV production did so based 
on strong government incentives 

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rather than customer demand, and
it could be argued that their 

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missteps are great examples of 
what happens when a company 

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listens to government planners 
rather than their own customers.

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A lot of the big commitments 
were made after car company 

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executives saw the run up in 
Tesla stock price in 2021, when 

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EV mania was at a peak. 
Ford announced in 2022 that it 

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would boost spending on EVs to 
$50 billion through 2026 and 

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create a new EV division. 
Ford possibly felt that they 

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could rely on government tax 
breaks to boost demand in the 

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United States, where buyers were
eligible to receive up to 7000 

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$1500 in tax credits when buying
a new EV. 

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Despite the tax incentive, 
Americans are not adopting EVs 

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anywhere nearly as quickly as 
analysts projected in 2021. 

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One of the issues is the 
American preference for light 

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trucks and SUVs. 
Ford CEO Jim Farley recently 

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explained on an earnings call 
that smaller and more affordable

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vehicles are the best way to go 
with EVs in volume. 

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He explained that the math is 
completely different for EVs 

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than for ICE cars. 
He said in ICE, the business 

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we've been in for 120 years, the
bigger the vehicle, the higher 

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the margin. 
But it's exactly the opposite 

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for electric. 
The larger the vehicle, the 

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bigger the battery you need, 
which puts more pressure on 

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margins because customers will 
not pay a premium for those 

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larger batteries. 
Ford announced this summer that 

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it would retool a plant in 
Canada to produce large pickup 

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trucks rather than the electric 
SUVs it had previously planned 

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to build at that location. 
Around the same time, GM said 

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that they expected to make 
significantly fewer battery 

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powered cars and trucks this 
year than they'd previously 

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forecast. 
Some of the decline in interest 

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in electric vehicles is possibly
driven by a much slower roll out

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of charging infrastructure than 
EV bulls were predicting, 

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combined with overhyped 
expectations for battery 

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improvements. 
US auto manufacturers hesitation

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about building more electric 
vehicles comes at a politically 

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uncertain time for the industry,
as incentives could change 

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significantly if Donald Trump 
wins the election in November, 

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given that he has pledged to 
undo many of Biden's green 

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policies, including those that 
promote the transition to 

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battery powered cars. 
Elon Musk does appear to have 

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befriended Trump, possibly with 
the goal of striking some sort 

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of a deal, but the probabilities
of that happening are impossible

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to predict. 
Electric vehicles themselves 

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seem to carry all sorts of 
political baggage, in particular

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in the United States, where 
they're often promoted by those 

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who see them as a virtuous 
product that will save humanity 

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from climate change, and opposed
by people who resent the tax 

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breaks they get for their 
wealthy owners, special parking 

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spots they get, and the feeling 
that the vehicles are being 

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forced on society by government 
regulation. 

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People who believe in free 
markets are offended by the 

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amount of government support EV 
manufacturers have received 

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through direct subsidies and 
carbon credits. 

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With demand for EVs dropping off
in Europe, hybrid sales have 

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been rising and are up about 22%
for the first seven months of 

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the year. 
The market share for plug in 

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00:15:14,560 --> 00:15:18,880
hybrids, which operate like true
EVs for a limited range before 

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swapping over to a combustion 
engine battery combination, has 

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however declined year on year. 
In Europe. 

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Plug in hybrids tend to be more 
expensive than traditional 

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hybrids which have smaller 
batteries. 

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We'll be back after a quick 
break. 

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It's like our brains have a mind
of their own when it comes to 

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money, right? 
Yeah. 

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It's crazy. 
We're diving into that today, 

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how our brains really deal with 
money. 

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We're going deep on this one, 
looking at money and how we 

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decide behavioral research. 
This stuff is like eye opening. 

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00:15:52,120 --> 00:15:55,200
Seriously, it turns out our 
brains aren't always rational, 

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especially with money. 
No kidding. 

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So what's the deal with that? 
Why are we so bad at making, you

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00:16:00,520 --> 00:16:02,480
know, sensible financial 
decisions well? 

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Our brains are kind of lazy in a
way. 

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They love taking shortcuts. 
Hybrid sales have grown by 31% 

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00:16:12,680 --> 00:16:17,320
year over year in the United 
States and made-up 8.6% of the 

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00:16:17,320 --> 00:16:21,320
total light duty market in the 
first quarter, which increased 

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00:16:21,320 --> 00:16:26,120
to 9.6% in the second quarter. 
Plug in hybrid sales in the 

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00:16:26,120 --> 00:16:31,640
United States grew slightly from
1.7% to 2% of the total light 

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00:16:31,640 --> 00:16:35,840
duty market year over year, 
according to investors Business 

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00:16:35,840 --> 00:16:38,840
Daily. 
Toyota, Honda, and Ford are the 

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00:16:38,840 --> 00:16:42,040
market leaders in hybrid sales, 
in that order. 

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00:16:42,560 --> 00:16:46,440
According to Price Waterhouse 
Coopers, the Tesla Model Y is 

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00:16:46,440 --> 00:16:50,160
the top selling full electric 
vehicle in Europe, China, and 

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00:16:50,160 --> 00:16:53,320
the United States. 
While Tesla still holds the 

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00:16:53,320 --> 00:16:57,240
number one spot in the United 
States, it no longer sells the 

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00:16:57,240 --> 00:17:02,040
majority of EVs as it used to. 
This was to be expected over 

268
00:17:02,040 --> 00:17:05,319
time as more and more 
competition came online. 

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00:17:05,800 --> 00:17:10,880
Teslas market share comes in at 
49% of the total EV market in 

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00:17:10,880 --> 00:17:14,440
the second quarter as sales 
shifted to legacy brands like 

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00:17:14,440 --> 00:17:19,839
Ford, GM, Hyundai and Kia, 
according to the FT Foreign 

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00:17:19,839 --> 00:17:25,319
brands used to make up 64% of 
auto sales in China in 2020. 

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00:17:25,640 --> 00:17:30,120
That has declined to 37% in the 
first seven months of this year.

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00:17:30,640 --> 00:17:36,080
US brands are down more than 23%
so far, and Japanese, Korean and

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00:17:36,080 --> 00:17:40,120
German car makers have also 
suffered double digit declines. 

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00:17:40,480 --> 00:17:45,160
Sales of Chinese brands, on the 
other hand, are up nearly 22%, 

277
00:17:45,320 --> 00:17:48,920
with Chinese companies 
dominating sales in the Chinese 

278
00:17:48,920 --> 00:17:52,600
EV market, which is the biggest 
EV market in the world. 

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00:17:53,280 --> 00:17:57,840
Tesla's share of Chinese EV 
sales fell to 6 1/2% in the 

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00:17:57,840 --> 00:18:02,400
first seven months of the year, 
from almost 9% a year earlier. 

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00:18:03,040 --> 00:18:07,720
As Tesla sales have fallen in 
China, BYD sales have grown, 

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00:18:07,920 --> 00:18:11,760
partially driven by Chinese 
demand for hybrids, which work 

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00:18:11,760 --> 00:18:15,240
out to be more practical and 
benefit from generous EV 

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00:18:15,280 --> 00:18:18,160
subsidies provided by the 
Chinese government. 

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00:18:18,680 --> 00:18:22,840
Anecdotally, a few weeks ago I 
saw first hand how uninterested 

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00:18:22,840 --> 00:18:26,480
people have becoming E VS When 
waiting at an airport rental 

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00:18:26,480 --> 00:18:30,160
counter for a car, the car 
rental employees were struggling

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00:18:30,160 --> 00:18:33,800
to clean and refuel the returned
cars to hand them over to new 

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00:18:33,800 --> 00:18:38,040
customers and a bit of a line of
irate customers had built up who

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00:18:38,040 --> 00:18:41,680
had paid for contactless rental 
where they were supposed to not 

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00:18:41,680 --> 00:18:45,600
need to stop the rental counter 
when an employee announced. 

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00:18:45,800 --> 00:18:48,040
Does anyone want an electric 
vehicle? 

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00:18:48,280 --> 00:18:51,240
The entire tire line took a step
backwards in horror. 

294
00:18:51,600 --> 00:18:54,560
They may have been tired from 
long flights, but they didn't 

295
00:18:54,560 --> 00:18:58,520
want the hassle of an EV messing
up their vacation or business 

296
00:18:58,520 --> 00:19:01,400
trip. 
A few years ago, I think people 

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00:19:01,400 --> 00:19:04,520
would have been more 
enthusiastic to try one out. 

298
00:19:05,160 --> 00:19:09,200
My sister, who actually owns an 
EV and knows their pros and cons

299
00:19:09,360 --> 00:19:12,840
and is familiar with dealing 
with charging stations, got 

300
00:19:12,840 --> 00:19:15,960
stuck with a rental EV from 
Hertz this summer when on 

301
00:19:15,960 --> 00:19:19,600
vacation in the United States 
with her three small children. 

302
00:19:19,840 --> 00:19:23,640
She was driving from New York 
City to Cape Cod at night and 

303
00:19:23,640 --> 00:19:27,000
expressed skepticism to the 
Hertz employee that the car 

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00:19:27,000 --> 00:19:29,800
would make it. 
They assured her that it would, 

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00:19:30,000 --> 00:19:33,160
and of course it didn't. 
She found herself searching for 

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00:19:33,160 --> 00:19:36,720
charging stations in the middle 
of the night, only to find that 

307
00:19:36,720 --> 00:19:40,000
the plug that came with her car 
was not compatible with the 

308
00:19:40,000 --> 00:19:42,040
first charging station she 
found. 

309
00:19:42,320 --> 00:19:46,680
The next charging station she 
found was out of order, stranded

310
00:19:46,680 --> 00:19:49,080
in the middle of the night with 
three small children. 

311
00:19:49,240 --> 00:19:52,800
She parked the EV at a police 
station where they let her plug 

312
00:19:52,800 --> 00:19:56,440
it into a regular outlet, and 
she took an Uber the rest of the

313
00:19:56,440 --> 00:19:58,720
way. 
The next day, when she was able 

314
00:19:58,720 --> 00:20:02,280
to collect the car and return it
to Hertz, they hit her with a 

315
00:20:02,280 --> 00:20:07,400
$175 fee for returning it. 
With a low battery, she was 

316
00:20:07,400 --> 00:20:11,240
unable to fit the five hour 
charging time into her schedule.

317
00:20:11,480 --> 00:20:15,840
What should have been a six hour
drive costing $140.00 turned 

318
00:20:15,840 --> 00:20:18,960
into. 
To a 19 hour nightmare that cost

319
00:20:18,960 --> 00:20:22,080
$400.00. 
Obviously, that's really 

320
00:20:22,080 --> 00:20:25,840
shameful customer service from 
Hertz, but stories like this 

321
00:20:25,840 --> 00:20:30,000
explain people's reluctance to 
pay a premium for cars that are 

322
00:20:30,000 --> 00:20:33,000
often a downgrade in terms of 
practicality. 

323
00:20:33,680 --> 00:20:37,320
So are EVs terrible products? 
No, they're not. 

324
00:20:37,560 --> 00:20:41,120
They may make terrible rental 
cars, but they really work for 

325
00:20:41,120 --> 00:20:44,640
commuters who can charge them at
home, where charging is often 

326
00:20:44,640 --> 00:20:47,960
cheaper than filling up with gas
and it can be done while you're 

327
00:20:47,960 --> 00:20:50,560
asleep. 
They improve the air quality in 

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00:20:50,560 --> 00:20:52,920
congested cities. 
They have phenomenal 

329
00:20:52,920 --> 00:20:55,320
acceleration, and they're very 
quiet. 

330
00:20:55,520 --> 00:20:59,160
But like every other product, 
they involve compromises. 

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00:20:59,440 --> 00:21:03,320
According to Kelley Blue Book, 
the average price of a new EV 

332
00:21:03,680 --> 00:21:08,600
sold in the United States this 
year was $57,000, the average 

333
00:21:08,600 --> 00:21:15,040
hybrid was $15,000 cheaper at 
$42,000, and the average petrol 

334
00:21:15,040 --> 00:21:20,680
car cost half the price of the 
average EV at $27,000 new. 

335
00:21:21,360 --> 00:21:24,600
Now, these numbers are likely 
skewed by people buying more 

336
00:21:24,600 --> 00:21:29,280
luxurious EV's on average than 
regular cars, but nonetheless, 

337
00:21:29,440 --> 00:21:33,320
these things are expensive. 
It appears that sales growth 

338
00:21:33,320 --> 00:21:37,520
expectations from both auto 
manufacturers and investors were

339
00:21:37,520 --> 00:21:40,080
a bit optimistic over the last 
few years. 

340
00:21:40,440 --> 00:21:44,800
The latest numbers from the ACEA
showed that August electric 

341
00:21:44,800 --> 00:21:49,920
vehicle sales in Europe were 
down 36% year on year, despite 

342
00:21:49,960 --> 00:21:52,120
all the green subsidies in 
place. 

343
00:21:52,400 --> 00:21:57,280
Hybrid sales growth slowed too, 
but are still up 8.3% year on 

344
00:21:57,280 --> 00:22:00,080
year. 
Even Tesla, the leading EV 

345
00:22:00,160 --> 00:22:04,400
manufacturer, has changed its 
plans because it no longer 

346
00:22:04,400 --> 00:22:07,560
expects the kind of sales growth
it's seen in the past. 

347
00:22:07,920 --> 00:22:11,680
The company has slowed plans to 
build a factory in Mexico and 

348
00:22:11,680 --> 00:22:15,280
cancelled a meeting with the 
Indian Prime Minister to discuss

349
00:22:15,320 --> 00:22:18,720
a new plant in India. 
The one bright spot for those 

350
00:22:18,720 --> 00:22:22,320
interested in buying an EV is 
that there appear to be amazing 

351
00:22:22,320 --> 00:22:25,000
lease deals available in the 
United States. 

352
00:22:25,280 --> 00:22:28,760
Ed Bolian of the Vin Wiki 
YouTube channel, who didn't 

353
00:22:28,760 --> 00:22:32,160
particularly want an EV, 
described how he managed managed

354
00:22:32,160 --> 00:22:40,160
to lease a new Audi E Tron RSA 
$150,000 vehicle for only $250 

355
00:22:40,160 --> 00:22:44,080
per month, plus some fees and 
taxes and things like that. 

356
00:22:44,400 --> 00:22:48,080
This is cheaper than a lease on 
an Audi A3, the company's 

357
00:22:48,080 --> 00:22:51,240
cheapest model. 
I'll put a link to his video in 

358
00:22:51,240 --> 00:22:54,840
the description. 
The fact that unsold EVs are 

359
00:22:54,840 --> 00:22:58,160
stacking up on dealer lots, 
combined with changes in the 

360
00:22:58,160 --> 00:23:02,480
rules for the US federal EV tax 
credit, which favours leasing 

361
00:23:02,480 --> 00:23:06,240
over buying electric vehicles, 
means that some leases were 

362
00:23:06,240 --> 00:23:10,800
available this summer for as 
little as $20.00 a month after 

363
00:23:10,800 --> 00:23:13,800
EV tax credits and special state
incentives. 

364
00:23:14,040 --> 00:23:17,720
As Bloomberg points out, that's 
less than the cost of a tank of 

365
00:23:17,720 --> 00:23:20,960
gas. 
Joe Biden's Inflation Reduction 

366
00:23:20,960 --> 00:23:25,520
Act restricted tax breaks for EV
buyers if a car cost more than 

367
00:23:25,520 --> 00:23:30,000
$55,000 or a truck cost more 
than $80,000. 

368
00:23:30,280 --> 00:23:34,840
The tax break doesn't apply to 
cars not assembled in the US or 

369
00:23:34,840 --> 00:23:37,920
to cars that use Chinese 
materials in their batteries. 

370
00:23:38,200 --> 00:23:41,920
It also capped the incomes of 
buyers who could apply for tax 

371
00:23:41,920 --> 00:23:44,480
credits. 
The act left a loophole, 

372
00:23:44,480 --> 00:23:48,240
however, where lease DVS were 
classified as commercial 

373
00:23:48,240 --> 00:23:52,400
vehicles, which would qualify 
for the full tax credit even if 

374
00:23:52,400 --> 00:23:55,960
they don't meet the battery and 
parts sourcing requirements. 

375
00:23:56,200 --> 00:24:01,160
With this credit, dealerships 
can bundle the $7500 tax credit 

376
00:24:01,160 --> 00:24:06,120
savings into the lease financing
cost, lowering customers monthly

377
00:24:06,120 --> 00:24:09,600
payments. 
The expected residual value of a

378
00:24:09,600 --> 00:24:13,720
leased vehicle is a factor in 
the lease calculation, and it 

379
00:24:13,720 --> 00:24:16,760
would appear the dealers are 
assuming these cars will not 

380
00:24:16,760 --> 00:24:19,880
depreciate as much as they 
actually do depreciate. 

381
00:24:20,160 --> 00:24:23,280
As in a typical lease, if the 
car is worth less than the 

382
00:24:23,280 --> 00:24:27,240
expected residual value at the 
end of the lease, you can turn 

383
00:24:27,240 --> 00:24:32,360
it in without any extra fees. 
We might eventually move to an 

384
00:24:32,440 --> 00:24:36,640
EV future, but based on recent 
trends it does not appear that 

385
00:24:36,640 --> 00:24:40,520
this will happen at the pace 
many were projecting a few years

386
00:24:40,520 --> 00:24:42,960
ago. 
It does appear that governments 

387
00:24:42,960 --> 00:24:46,720
around the world do want to make
this happen, even if they are 

388
00:24:46,720 --> 00:24:50,080
walking back the dates. 
Thanks for tuning into the 

389
00:24:50,080 --> 00:24:52,520
podcast. 
If you found it interesting, I'd

390
00:24:52,520 --> 00:24:56,080
appreciate if you sent a link to
a friend to help the podcast 

391
00:24:56,080 --> 00:24:58,320
grow. 
Have a great week and talk to 

392
00:24:58,320 --> 00:25:00,000
you again soon. 
Bye. 

393
00:25:00,640 --> 00:25:04,080
If you enjoyed this episode, be 
sure to subscribe so you're 

394
00:25:04,080 --> 00:25:06,040
notified when a new episode is 
posted. 

395
00:25:06,480 --> 00:25:09,200
Thank you to everyone who is 
supporting this content on 

396
00:25:09,200 --> 00:25:11,720
Patreon. 
If you enjoyed this content, you

397
00:25:11,720 --> 00:25:15,320
can find more like it on 
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398
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Finance channel, or follow us on
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399
00:25:19,880 --> 00:25:21,240
Thanks for listening. 
Bye.