Electric vehicles losing consumers a fortune, as values can depreciate at twice the rate of petrol cars

Leasing enquiries for electric vehicles up 32% from Q4 to Q1

Demand for current electric vehicles remains high despite the cost-of-living crisis and interest rate increases says Leasing.com, evidenced by its proprietary data that shows a 32% increase in enquiries for electric vehicles in Q1 2023 compared to Q4 2022.

It believes the demand is down to consumers seeking out leasing offers online instead of opting for Personal Contract Purchase (PCP) offers in dealer showrooms. Figures from the Finance & Leasing Association (FLA) note that PCP remains the most popular current car finance product.

The comparison website’s data shows that car leasing can succor motorists save an average of £4,834 compared to the equivalent current EV sold on PCP. It also shows customers are extending the term of their lease agreements and choosing more affordable models to succor manage their household budgets during the current difficult economic conditions.

Leasing.com compared the total cost of leasing versus PCP on 10 of the most popular EVs and leasing was cheaper on 9 of those models. SUVs provide the biggest potential savings for consumers. A 36-month lease on a Kia Niro, for example, costs a total of £18,135 while the equivalent PCP costs totaled £28,301. Leasing therefore saves a significant £10,166 or £282 per month over three years.

Similarly, the Hyundai Kona is significantly less expensive when leased. Motorists could save a total of £5,897 over PCP or £163.81 per month over a three-year period.

Leasing can also succor consumers save on premium models. Financing the Jaguar I-Pace on PCP over a 48-month long contract would cost a total of £48,170 while leasing the same model would save consumers £104 per month, with a total cost of just over £43,159 over the same term.

Paul Harrison, Chief Partnerships Officer at Leasing.com, says that leasing can succor the automotive industry win the affordability argument on electric vehicles:

“While there believe been reports of a cooling of consumer interest in EVs, the proven affordability of leasing an EV is creating increased interest and bolstering consumer confidence. The transition to electric vehicles is vital to the UK’s environmental objectives and must be supported with consumer education. Our research shows what an critical enabler leasing is to that transition, with motorists able to save many thousands of pounds over alternative car finance products. Those savings are significant for every household in a high-inflation and high interest rate environment.”