New forms of financing contracts for natural gas vehicles

Summary

Innovative financing models allow fleet operators to convert their fleets to compressed natural gas (CNG) in a cost-effective way. The dissemination of attractive leasing models was therefore aimed at stimulating the introduction of cleaner CNG vehicles in Berlin and beyond.

Implementing sustainable mobility

Several providers already offered the opportunity to finance CNG vehicles by leasing. However, the offers were not attractive due to risks in relation to residual value as well as to servicing and maintenance. On the other hand, municipalities, businesses, retailers and parcel services were identified as target groups for optimised leasing concepts.

The aim of the measure was to disseminate leasing models that refinance the higher investment costs for CNG vehicles by lower operating costs and relevant promotion programmes.

Progress

A qualitative analysis of financing models revealed the following results:

• Leasing was the favoured financing strategy in some public and business sectors and was therefore a promising instrument for the market stimulation of CNG vehicles.
• Leasing for CNG vehicles could be made economically profitable for leasing providers and users. Leasing providers identified numerous possibilities for their own and cooperative public relations activities.
• Consultation with the public sector was required regarding the possibilities for the green procurement of CNG vehicles and transport services.

Outcomes

New leasing models for CNG vehicles were developed and presented to a professional audience in November 2002. Subsequent discussions focused on the possibility for optimising the leasing of CNG vehicles through the revaluation of residual value and flexible km-based contracts.