THE leasing deal aggregator Leasing.com says it saw a 32% increase in the demand for new electric vehicles during Q1 compared with the final quarter of 2022.
Leasing.com says the demand is down to consumers seeking out leasing offers online instead of opting for Personal Contract Purchase (PCP) offers in dealer showrooms, although PCP remains the most popular new car finance product (source: Finance & Leasing Association).
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, making leasing a more affordable option to access the newest EVs.
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 10 of the most popular EVs. Leasing was cheaper on nine of those models under consideration. SUVs provide the biggest potential savings for consumers. The website said that a 36-month lease on a Kia Niro, for example, cost a total of £18,135 while the equivalent PCP costs totalled £28,301, a saving of £282 per month over the 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.
Paul Harrison, chief partnerships officer at Leasing.com, said 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.
Savings on EVs by leasing
| Electric Vehicle | Saving (contract term) | Saving (per month) |
1 | Kia Niro EV Estate | £10,166.72 (36 months) | £282.41 |
2 | Volkswagen ID.3 | £4,755.43 (48 months) | £99.07 |
3 | Renault Zoe | £6,232.08 (24 months) | £259.67 |
4 | Vauxhall Corsa-E (anniversary edition) | -£1,453.36 (48 months) | -£30.28 |
5 | Nissan Leaf | £6,266.32 (36 months) | £174.06 |
6 | MG ZS | £4,623.93 (48 months) | £96.33 |
7 | Fiat 500 Electric Hatchback | £1,198.48 (36 months) | £33.29 |
8 | Hyundai Kona | £5,897.24 (36 months) | £163.81 |
9 | Peugeot 208 | £5,862.62 (36 months) | £162.85 |
10 | Mazda MX-30 | £4,795.28 (36 months) | £133.20 |
Source: Leasing.com
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.
