Demand for new electric vehicles (EVs) remains high despite the cost-of-living crisis and interest rate increases according to Leasing.com - its proprietary data shows a 32% increase in enquiries for electric vehicles in Q1 2023 compared to Q4 2022.
Leasing.com believes that the demand is due to consumers searching for leasing offers over Personal Contract Purchase (PCP) offers in dealer showrooms, as a trend for online car sales also increases, although figures from the Finance & Leasing Association (FLA) show that PCP remains the most popular new car finance product.
Data from the comparison website shows that motorists can save an average of £4,834 by leasing an EV compared to the equivalent sold on PCP.
When comparing ten of the most popular EVs, Leasing.com found that the total cost of leasing was cheaper on nine of the models compared to PCP prices - with SUVs providing 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.
“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,” said Paul Harrison, Chief Partnerships Officer at Leasing.com.
“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.”