Demand for new electric vehicles remains high despite the cost-of-living crisis and interest rate increases, data from Leasing.com has revealed.
According to Leasing.com, there was 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) show that PCP remains the most popular new car finance product.
The comparison website’s data shows that car leasing can help motorists save an average of £4,834 compared to the equivalent new EV sold on PCP. It also shows customers are extending the term of their lease agreements and choosing more affordable models to help manage their household budgets during the current difficult economic conditions.
Leasing.com compared the total cost of leasing versus PCP on ten 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 totalled £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 help 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 help the automotive industry win the affordability argument on electric vehicles: “While there have 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 important 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.”