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Future battery revenue could be monetized and that value used to lower Nissan customer monthly payments, Nissan Americas Chairperson Jeremie Papin told the American Financial Services Association Vehicle Finance Conference.
January 29, 2023 10:12 AM
DALLAS — Nissan’s mechanisms for helping consumers afford electric vehicles include the battery itself, Nissan Americas Chairperson Jeremie Papin said last week.
“The battery can have a life outside of the car,” Papin told the American Financial Services Association Vehicle Finance Conference here.
It’s an asset that can produce revenue long beyond an auto loan term of three to seven years, and work on monetizing a battery for a longer period of time could be drawn upon, he said.
The battery’s cost can be perceived as lower because such future revenue could be discounted, he said. This can trickle down to lower monthly payments for the consumer, he said.
GAIL KACHADOURIAN HOWE/AUTOMOTIVE NEWS
Jeremie Papin said “some people just can’t” afford higher payments.
Nissan and its captive finance company, Nissan Motor Acceptance Corp., were working together on affordability, both “using captives aggressively to bring the customers into affordability” and examining how the battery could be used to improve it.
EV financing also could differ from internal combustion engine financing because of the Inflation Reduction Act, according to Papin. He said the bill, which allows consumer leasing to count for a commercial EV tax credit, could prompt growth in EV leasing beyond what was seen last year.
Papin also discussed the financial state of Nissan’s customers.
Someone who bought a vehicle three to five years ago could face higher monthly payments when returning to the market, he said.
“We are looking at this very closely,” Papin said.
It’s not easy for customers to pay $50 or $100 more a month, he said.
“Some people just can’t,” Papin said. Nissan understood that and sought solutions for them, he said.
But Nissan also has been aggressive in targeting segments of customers it historically has been less successful in capturing, according to Papin.
And it’s seeing results, he said.
The automaker has experienced a “spike” in household income for buyers of many newer models. It has also observed growth in customer credit scores “without us being tighter,” Papin said.
Nissan’s products are delivering a new customer base, he said.
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