Rise in EV leasing expected as residual values increase

Vantage Leasing has predicted that there will be a rapid rise in leasing EVs due to the anticipation of a strong second-hand market for electric vehicles in 2021/22.
 
Probable higher residual values in 2021/22 for EVs will in turn reduce the depreciation cost in a lease payment before then.
 
James Buttrick of vantage-leasing.com explains: “Higher residual values for EVs in coming years due to the anticipation of a second-hand market should also make it cheaper to lease an electric vehicle in the very near future.

 
“That’s because any enhancement of EV residual values means the depreciation cost in a lease payment will also be smaller.
 
“Leasing is also risk free for the customer as the lender or broker takes on ownership of the vehicle. This gives motorists the freedom to choose their ideal electric vehicle without stressing about future values.”
 
Vantage Leasing also forecasts that the adoption of electric vehicles in the coming years will grow, in stark contrast to the latest Society of Motor Manufacturers and Traders (SMMT) figures which show a dormant EV market.
 
These revealed that sales of pure electric vehicles only increased by 1,307 vehicles from 2017 to 2018 year-to-date and doesn’t even make up 1 per cent of all new car sales.
 
James added: “Besides their lower running costs and being better for the environment, driving an electric vehicle has never been more convenient with more-and-more charging locations appearing across the UK.
 
“We believe driving electric will soon become the norm, with leasing being the preferred option for many motorists.”