Banks, lessors and other financers may be missing out on what could be a significant market by focusing on buyers of new battery electric vehicles (BEVs) while ignoring the people who might look to buy those same vehicles when they are ready to be sold used.

A new BEV costs approximately double what an internal combustion engine (ICE) truck costs. That’s a significant burden for any business, which is why the vast majority of BEVs are purchased by large fleets and corporations.

We may be a decade away from BEVs being the dominant type of equipment in commercial trucking, but the future is looming. Finance organizations should be asking: Who is going to buy that used BEV when it comes on the market? How do we capitalize on this secondary user?

Who are These Secondary Users?

There are actually three categories of potential aftermarket buyers:

• S. Ports: As the Clean Ports Program and other initiatives push to electrify ports and reduce vehicle emissions at and near the facility, stevedores and port operators will be required to use zero-emission vehicles when it comes to drayage, moving freight short distances from an entry point or terminal. This will incentivize port operators to work with carriers that already have those zero-emission vehicles.
• Last-Mile Delivery: One of the major disadvantages of BEVs is less the fault of the vehicle and more the reality of a lack of infrastructure and charging stations for long-haul deliveries. However, companies that are looking to move freight over shorter distances will be an excellent market for BEVs, especially used vehicles that are significantly more affordable.
• Small Carriers/Owner Operators: It’s important to remember that 95% of U.S. freight annually is transported by small carriers that own 10 trucks or less, according to American Trucking Associations. These are small businesses that operate on the margins and can in no way afford a new BEV, and these are the same carriers that have been buying used ICE trucks and operating them for about 10 years or more.

A Competitive Advantage for Small Carriers

Small carriers and owner operators will likely be the largest market for used BEVs going forward, yet this same group largely lacks knowledge regarding the technology and potential incentives to purchase. Late last year, an article in Overdrive noted that “very few owner-operators and small fleets (fewer than 10 trucks) have any knowledge whatsoever about what’s available.” From the operations and maintenance side, BEVs eliminate the biggest cost to fleets — fuel. In addition, with less components and parts, BEVs reduce the cost of maintenance. These two issues, when factored in, make the cost of a used electric vehicle more comparable to the cost of a diesel truck over their respective lifecycles.

Considering that we are still in a freight recession, small carriers need every possible advantage, but they need to understand how this new technology will help. Having BEVs may be a significant selling point to companies that want to be able to tell their customers that they are environmentally responsible. According to Overdrive, when it comes to zero-emission vehicles, large shippers and larger fleets are actually “looking for small fleets with ZEV equipment to help them meet their own sustainability goals.”

Talking Directly to the Secondary Market

Small carriers are just trying to make a profit and keep their trucks running; they often don’t understand this technology and how much it can help them. Banks and lenders can make a difference here.

Right now, the focus is on financing new BEVs, but, at some point, that vehicle will go on the secondary market. This leads to one of the questions that banks and lenders need to ask themselves: Who is going to buy the used BEV in the secondary market?

Banks and lenders are rarely at the forefront of promoting technology to their customers, especially in this industry. Someone needs to take the first step — talking to a secondary market that isn’t currently being addressed. Instead of waiting for the market to dictate the demand, lenders need to create the demand.

Get stories out there that will illustrate how investing in used BEVs is good for business. If a small fleet with investments in BEVs wins a major bid, announce that in the trades, on social media or any other channel that will reach that secondary buyer. If companies have RFPs that contain green initiatives, make clear to the secondary market that they can win business with this investment.

The bank or lender that takes that first step, has a plan, and is promoting BEV’s in the aftermarket is going to win as a finance company in the future of trucking. Those who wait for someone else to take that first step will get left on the side of the road.