Electric vehicles are expected to become much cheaper over the next two years as stronger residuals make them more attractive to the leasing sector.
Vantage Leasing says it should become cheaper to lease a battery powered car.
There is anticipation of a strong second-hand market for electric vehicles in 2021/22, which will in turn reduce the depreciation cost in a lease payment before then.
“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,” said James Buttrick from Vantage Leasing.
Registration figures from the Society of Motor Manufacturers and Traders (SMMT) show a dormant EV market, where sales of pure electric vehicles only increased by 1,307 vehicles from 2017 to 2018 year-to-date.
However, supply issues and the switch to WLTP has affected the availability and lead times of many electric and plug-in hybrid cars in the last 12 months.
Car makers continue to investing billions in new battery technology and the UK Government has also set out measures to encourage driving electric, such as a push for chargepoints to be installed in newly built homes and lampposts.
“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,” said Buttrick.