The automotive industry is on the verge of a significant transformation, with electric vehicles (EVs) at the forefront. The rise in used EV leasing is a trend that's worth watching, as it could have far-reaching implications for the sector.
Indeed, there is. 80% of EVs are leased, compared to just 30% of conventional vehicles. This shows a clear preference for leasing when it comes to EVs, which is likely due to their higher upfront costs and the rapid pace of technological advancement.
However, used EV prices across the globe have dropped recently, making them a more affordable option for many consumers. This could further fuel the rise in used EV leasing, as lower prices remove or reduce the cost barrier sometimes presented by these vehicles.
Yes, and it already is. According to a study by consumer group BEUC, a second-hand battery electric vehicle has much lower ownership costs than a used petrol car.
The study demonstrates that if the leasing sector starts leading instead of following the market regarding the popularity of BEVs, this could bring up to 18 million more second-hand BEVs onto the market in the next decade. Crucially, the report found that 8 million of these cars would be within the price range of the average low- and middle-income household. For the industry, this could precipitate a call for leasing companies to move in the direction of greater prioritisation of used EV leasing.
Moreover, leasing an EV for your business via a leasing company offers significant tax benefits. This financial incentive makes leasing an even more attractive option for consumers and could drive further growth in the used EV leasing market.
Second-hand EV leasing offers a host of benefits to consumers and the automotive industry alike. For consumers, leasing allows access to eco-friendly transportation without the hefty price tag often associated with new EVs. This affordability makes the dream of driving an EV a reality for more people.
Used EV leasing also offers flexibility. You have a broader range of choices as you can utilise a leasing company's spending power. For example, leasers can benefit from a fixed term ranging from 24-48 months. Past this period, there is the option to lease another new or used vehicle should you wish to. While this option is available for both used and new EVs, the associated costs with leasing a used EV are naturally lower in line with the respective prices of the vehicles.
Experience the benefits of leasing a used EV through our Novalease solution. Enjoy access to corporate discounts and the ability to drive a used or new car on the market at an affordable price.
For employers, you have no risk or liability, and the lease remains off the balance sheet under new lease accounting standards. It's fully HMRC-compliant and FCA-regulated, too, offering peace of mind and reassurance that your employees are receiving fair treatment.
If you're an employee, you can benefit from fixed payment on all costs related to running with the exception of fuel. You can also benefit from full consumer rights and protection, as well as portability, meaning you can transfer your deal to a new employer or work with us at the same rates.
If you want to find out more, please don't hesitate to get in touch with our team.
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