ONGOING electrification of UK fleets and businesses grew stronger during Q3 reports Leasing.com.
The leading leasing deal aggregator website reported that battery, plug-in and hybrid electric vehicles combined accounted for more than half (53%) of business lease enquiries in Q3 2022.
The top three most popular electric vehicles for businesses were:
- Tesla Model Y
- Kia Niro, and
- Polestar 2.
Across all fuel types, the Tesla Model Y, Ford Ranger and Nissan Qashqai were the most popular vehicles.
Leasing.com said that average business leases were for 10,000 miles a year over a three-year contract. The average spend considered was £527 per month excluding VAT.
In both the business and personal leasing market, supply continued to dictate vehicle demand in Q3, said the leasing offers website. In stock vehicle offers received 43% of total sales enquiries on Leasing.com in Q3 despite only representing around 10% of the offers that were promoted.
Over 28% of personal leasing demand was for electric vehicles with the Kia Niro, Hyundai Tucson and Hyundai Kona the most popular EVs in Q3 this year.
However, while demand for EVs continued to grow in 2022 – it reached 20.6% of the market in November – the cost-of-living crisis was beginning to tell, reducing the rate of growth continued Leasing.com.
The cost-of-living crisis also influenced the type of agreement consumers sought out with over 55% of demand for four-year agreements – as consumers sought longer-term financial certainty as well as lower monthly costs.
The average consumer contract was with an annual mileage allowance of 8,000 and were looking to spend an average of £371 per month. The top three most popular vehicles across all fuel types were:
- Nissan Qashqai,
- Cupra Formentor, and
- Hyundai Tucson.
Our data again shows how important leasing is as an enabler to the electrification of the new car market. Business and consumer EV demand remained strong in Q3 and was particularly focused around the brands and advertising partners who could access stock. However, we did see a softening in the rate of EV growth amongst consumers as inflation and other cost pressures hit household incomes. Consumers are also amending the terms of their next lease agreement to ensure affordability
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
