Despite the prevailing cost-of-living crisis and recent interest rate increases, the demand for new electric vehicles (EVs) is experiencing a notable year-on-year acceleration, according to data from Leasing.com.
The car leasing comparison site’s proprietary data reveals a substantial 44% increase in enquiries for electric vehicles during Q4 2023 compared to the same period in 2022.
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The surge in demand is attributed to a shift in consumer behaviour, with savvy individuals increasingly turning to online leasing offers rather than opting for traditional Personal Contract Purchase (PCP) deals in dealer showrooms.
The Finance & Leasing Association (FLA) reports that PCP remains the most popular new car finance product.
Leasing.com points to increased pressure on manufacturers to produce more affordable EVs for consumers as a contributing factor to the sustained rise in demand. This, in turn, is leading to heightened competition and more attractive leasing costs.
A comprehensive analysis by Leasing.com focused on the most popular electric vehicles on the market. The comparison juxtaposed PCP deals with their Personal Contract Hire (PCH) equivalents, factoring in variables such as mileage and contract length. The findings revealed that, on average, drivers can realise a substantial saving of £6,978.48, resulting in more cost-effective deals on nine out of 10 electric vehicles examined.
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By GlobalDataFor instance, leasing the Nissan Leaf on a 36-month, 10,000 miles per year contract could yield a £8,650.44 saving or £240 per month compared to a PCP deal. Similarly, the Peugeot 208 E, based on a 36-month contract with 6,000 miles per year, offers drivers a £5,322.28 saving across the contract, translating to a monthly saving of £148.
Even electric vehicles with higher price tags demonstrated significant savings. The Subaru Solterra, marking the brand's inaugural venture into the all-electric market, emerged as the most expensive vehicle on the list. However, compared to a PCP contract, leasing the Solterra presents drivers with a remarkable monthly saving of £357 or a total saving of £17,174.45 over a 48-month contract with an 8,000-mile annual allowance.
Paul Harrison, Chief Partnership Officer at Leasing.com, highlighted how affordable EV deals are instrumental in supporting manufacturers to align with mandated Net Zero ambitions by creating EVs that cater to diverse budgets and preferences. He said: “Our research shows just how crucial PCH is proving to help drivers realise an electric future for less than they may have originally thought. It is also supporting manufacturers to create EVs that cater to all budgets and in all shapes and sizes.”
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