One in five motorists don’t realise they can lease an EV, YouGov research shows
More than a fifth (22%) of drivers surveyed who don’t have an electric vehicle (EV) are unaware they could lease one instead of buying, according to new YouGov research.
The findings suggest many motorists could be overlooking one of the most affordable routes into EV ownership at a time when running costs remain a major concern.
Lack of awareness is greatest among drivers aged 35-plus and among women. Almost six in 10 respondents (59%) who aren’t aware of EV leasing are female, compared to four in 10 male respondents.
Even drivers who are aware they can lease an EV mistakenly assume the upfront cost will be similar to buying. Almost three in 10 respondents (28%) assume this, compared to just over a third (34%) of respondents who know it’s possible to lease an EV and the upfront cost could be lower than buying.
Car and van leasing specialist Gateway2Lease, which commissioned the YouGov research of more than 2,000 participants, says that leasing an electric car on a personal contract hire (PCH) agreement can work out significantly cheaper per month than a finance deal.
“Unlike buying an EV, there’s no big financial outlay with leasing. Instead, payments are spread throughout the term of the lease, which can help consumers to budget for a new car. And there’s no need to worry about depreciation as the leasing company takes the risk,” says Kelly Marshall, managing director of Gateway2Lease.
“That means leasing an EV can be a really affordable way for drivers to make the switch from a petrol or diesel vehicle to an electric one, which is particularly important ahead of the government’s proposed ban on the sale of new conventional diesel and petrol cars from 2030.”
Drivers who are able to lease an electric car through a salary sacrifice scheme (if their employer provides one) make further savings on income tax and national insurance because the vehicle lease cost is deducted from their salary before tax is taken.
“We’ve seen a 48% year-on-year increase in employees choosing an electric vehicle through salary sacrifice. As awareness has grown, more drivers have realised they can access a brand-new EV for considerably less than they expected because of the tax advantages available,” says Kelly.
The government’s Electric Car Grant, which gives a discount of either £3,750 or £1,500 on more than 60 new EVs can also lead to lower lease rentals, and drivers benefit from exemption from the London Ultra Low Emission Zone (ULEZ) and Clean Air Zones (CAZs) in other major cities.
Charging an EV at home overnight on a dedicated EV tariff also brings significant savings compared to the cost of filling a petrol or diesel car at the pumps.
“We also recently identified through our research with YouGov that fuel prices have been prompting ” says Kelly. “This number could be even higher once people understand they can lease an EV, and we’re working hard to raise awareness about the benefits of leasing.”