EV demand surges despite consumer concerns – Close Brothers Motor Finance
UK vehicle dealerships are experiencing an acceleration in electric vehicle (EV) demand with customer enquiries, vehicle purchases, and finance applications gathering pace over the past 12 months. New dealer research from Close Brothers Motor Finance (CBMF) reveals that more than eight in 10 dealerships stocking electric vehicles have experienced an increase in customer interest across every stage of the buying journey.
Nearly nine in 10 dealers (86%) report an uptick in EV customer enquiries, while 84% confirm an increase in actual EV purchases over the past year. Additionally, 86% of dealers reported increased interest in EV finance, while almost nine in 10 (89%) have seen greater demand for home charging solutions.
When securing an electric vehicle, traditional finance structures remain the dominant choice for buyers. Conditional Sale and Hire Purchase (HP) are currently the most popular finance products, each selected by 30% of dealerships. Personal Contract Purchase (PCP) follows closely behind at 27%.
Despite strong market momentum, the findings highlight several pain points that are slowing adoption. The primary concerns raised by prospective buyers focus on charging infrastructure and future vehicle values, with both cited by 34% of dealerships as key roadblocks. Battery lifespan and insurance costs follow closely behind, each identified by 31% of dealers.
However, previous research by CBMF suggests infrastructure anxiety may be more psychological than practical. Over four in ten motorists (42%) drive 100 miles or fewer in a regular week. This statistic illustrates that for many, routine driving habits fall well within the typical 300-mile range of modern EV batteries, making frequent public charging largely unnecessary.
Affordability and vehicle range also remain hurdles. Almost three in 10 dealers state that the upfront cost of purchasing an EV (30%) and range anxiety (30%) continue to deter potential buyers, while more than a quarter note that many consumers still prefer traditional petrol or diesel vehicles.
John Cassidy, managing director at Close Brothers Motor Finance, commented: “EV demand remains high, and on the rise in the UK, with our latest research highlighting that consumers are showing interest at every stage of the buying process. This news will be met with encouragement by dealers and the government alike, and demonstrates that the broader net zero transition is being embraced by the public.
“Whilst the signs remain positive, dealers continue to raise important areas of friction that are halting further adoption. Whilst there are undoubtedly real barriers to overcome, including challenges with affordability and the variety of vehicles on offer to consumers, there is also a wider understanding gap the industry needs to close. Nowhere is this more relevant than EV charging where it can be easy to underestimate the power of modern batteries. To underline our commitment to removing these friction points, earlier this year we announced a multi-year partnership with Pod to supply accessible home and forecourt charging solutions to our dealer network and their customers.
“Overall, the picture looks positive, and continued effective collaboration between the government, EV manufacturers, dealers and finance providers can go a long way to improve understanding and accessibility of EVs in the years to come.