High Incentives In Norway Prevent EVs From Being Repaired?

DEC 22 2014 BY MARK KANE 18

Tesla Motors Brings Revolutionary Supercharger to Europe With Launch Across Norway

Tesla Model S

All the regulations of the market have both positive and negatives sides and incentives to buy electric cars are no different.

In Norway, where incentives for all-electric cars are highest, sales are very high – and because of the lack of 25% VAT, buyers get the highest benefit when purchasing expensive electric cars.

And while price of the car is heavily lowered, there are situations that pop up from time to time that question the economic value of fixing versus buying new.

According to reports from Norway, even moderate damage to the brand new Tesla could exceed the mark of 60% estimated market value used by insurers (note that parts are still expensive without incentives) and the car will end its journey early.

Well, if nothing changes, someone would need to pay for those new Model S EVs (instead of repairing the damaged one) and insurance rates will go up, but the problem of moderately damaged cars put out of service will remain – it’s bad from an economical perspective and damaging to the environment.

Source: vg.com

Categories: General, Tesla

Tags: , ,

Leave a Reply

18 Comments on "High Incentives In Norway Prevent EVs From Being Repaired?"

newest oldest most voted
Frank

Let them sell their old model s to other less inventivised country then

Alaa

Yes. Send one to me in Egypt.

It will cost a ton to ship this 2 ton piece to Egypt!

Big Solar

well worth it though.

islandboy

No it will not.

At least not significantly more than shipping a perfectly good car, if the damaged car is drivable. The market for damaged used cars is not insignificant. Japan for example exports some number of damaged used cars to countries in Africa and the Caribbean where local repair shops do a fairly decent job of repairing them for a lot less than it would cost to repair in Japan or just about any first world country.

Ben

I believe that slightly damaged cars are sold or exported to other countries. I don’t think they ‘destroy’ those cars…

Spec9

This. The market will extract value.

How often do you get car repairs of $60k? (60% of a in Norway $100k car).

The car needs to be extremely messed up to reach those numbers.

It’s a very strange article since it’s only from the perspective of the only repair shop that gets to do highly messed up Teslas in Norway. Of course they would like to see the 60% number (from the insurance companies which is the level when the car is not worth fixing according to them) go up since they would be the ones getting to fix those car and making a lot of money while doing it.

This is a non-issue.

pjwood

Here’s how you get to $30k:

http://tinyurl.com/m8zeqom

It’s bigger than a Norway issue. A number of TMC posters have noted recent insurance rate increases, here in the states.

That accident doesn’t look like $30k, does it? If there is a silver lining to limiting approved body repair shops, it could be that some salvaged Teslas are worth more than their price. They aren’t the only user of aluminum.

Thomas J. Thias

OPINION/
+100

Mr. Kane has outdone himself this time.

From the looks of this sources front page their contend and citation seems to challenge the grocery store pulp magazine known as the National Enquirer.

(Link To Google Translate- Copy And Paste Text Into Field)-

https://translate.google.com/?hl=en&tab=TT

Best-

Thomas J. Thias

517-749-0532

Twitter.com/AmazingChevVolt

http://www.vg.no/

sven

Will Norway continue to offer extremely generous EV incentives if oil stays at $60 dollars a barrel for an extended period of time?

ffbj

Yes, until they hit the limit of the number of cars which will probably be a year or so from now.

BraveLilToaster

You completely fail to understand Norway’s incentive scheme.

What they actually do is charge a large sales tax on cars based on how much gas they consume, often reaching around 80% or more. This places a lot of sedans that would normally be around $20 or 30 k into the price bracket of a Leaf or the entry level Tesla. But since electric cars get 0% tax, they are placed at a competitive advantage. Plus, their electricity is super cheap and their gas is super expensive (again, because of taxes).

So while Norway might not be making as much money as they used to when oil was more expensive, their EV incentives are in no danger of being scrapped.

Besides, did you know that the Norwegian government has no debt, and in fact they’re putting oil revenues into a trust fund for their citizens? They’re up around $1 million per person, I recall.

ElHowardo

For all cars there is an age when the owner’s cost of an old car equals a new one. The lower the purchase taxes, the sooner these two curves meet. That’s also the reason why Norway’s average (ICE) car age is amongst the highest in the world – you can do a lot of maintenance before a new car becomes profitable.

Acevolt

I wonder how easy it is to properly fix a damaged i3 with its carbon fiber? That will probably have more issues than the Model S.

Surya

I doubt this is bad for the environment. They might not be repaired in Norway, but I don’t see why they wouldn’t get fixed in neighboring countries, resulting in increased EV uptake there. The mildly damaged cars are simply too valuable to not be repaired.

Jesse Gurr

Wouldn’t that mean that the when the insurance pays out for a new car, the old damaged car will be marked with a “salvage” title? Then it wouldn’t be as easy to get parts for it, right?

Brian Henderson

Makes for a great import/export market.

High demand for new PEVs increases imports into Norway. Low prices on used damaged vehicles means a repaired PEV will be cheaper in a neighboring country without incentives.

Question for Norway to ask: is there interest in creating a local PEV service industry, or are they OK with a neighbor developing and capitalizing on this skills set?