Evaluation of a platinum leasing program for fuel cell vehicles

This paper evaluates the feasibility of a platinum leasing program for future fuel-cell vehicles (FCVs) in the United States. By internalizing the residual value of platinum in the vehicle's upfront cost, a platinum lease may offer cost savings to the consumer. Several leasing scenarios were evaluated to estimate potential cash savings.The study concludes that under ideal conditions, the upfront price of platinum could be reduced by 40% compared to a no-lease scenario. However, even small increases in the lease rate greatly reduce these savings. The benefits depend on the extent to which lending risks are minimized, and on the vehicle's platinum loading. These benefits will be greatest during initial stages of market penetration, when the technology is less proven and platinum loadings are highest. To ensure low lease rates, governmental support is likely necessary, both to minimize risk exposure and borrowing costs, and to optimize platinum recovery.