Vantage Leasing has predicted an increase in electric vehicle (EV) leasing over the next two years, attributing the rise to a “strong second-hand market” in 2020/21.
Probable higher residual values in 2021/22 for EVs will in turn reduce the depreciation cost in a lease payment before then, it said - delivering improved affordability in the meantime.
Vantage Leasing’s digital marketing manager, James Buttrick, said: “Higher residual values for EVs in coming years due to the anticipation of a second-hand market should also make it cheaper to lease an electric vehicle in the very near future.
“That’s because any enhancement of EV residual values means the depreciation cost in a lease payment will also be smaller.
“Leasing is also risk free for the customer as the lender or broker takes on ownership of the vehicle. This gives motorists the freedom to choose their ideal electric vehicle without stressing about future values.”
Vantage Leasing forecasts that the buzz around electric vehicles in the coming years will be in stark contrast to the latest Society of Motor Manufacturers and Traders (SMMT) figures which show a dormant EV market.
These revealed that sales of pure electric vehicles only increased by 1,307 vehicles from 2017 to 2018 year-to-date and doesn’t even make up 1% of all new car sales.
However, the switch to electric has strong backing from many quarters. Car makers around the world are investing billions in new battery technology.
The UK Government has also set out measures to encourage driving electric, such as a push for chargepoints to be installed in newly-built homes and lampposts.
“Besides their lower running costs and being better for the environment, driving an electric vehicle has never been more convenient with more-and-more charging locations appearing across the UK,” said Buttrick.
“We believe driving electric will soon become the norm, with leasing being the preferred option for many motorists.”