Secondhand EV Leasing Gains Popularity in UK
· business
Secondhand EV Leasing Hits the Fast Lane as UK Drivers Seek Cost-Cuts
The used electric vehicle market has transformed the way people think about car ownership in the UK. While saving money is a key factor, it’s not the only consideration. As petrol prices continue to rise, secondhand EV leasing is becoming increasingly attractive for consumers who want access to a well-maintained electric car without breaking the bank.
The supply of used electric cars has increased significantly due to early adopters feeding them into the market. According to the British Vehicle Rental and Leasing Association (BVRLA), this surge in supply is driving down prices relative to their new counterparts, making secondhand EVs more accessible to a wider audience.
Leasing offers many advantages over buying, including lower monthly fees and reduced depreciation costs. With secondhand EV leasing options now available, consumers can enjoy the benefits of electric driving without worrying about long-term ownership expenses. “Used leasing is giving consumers real choice,” says Toby Poston, BVRLA chief executive. “Access to a well-maintained electric car with the latest technology at various price points, without taking on financial risk.”
The shift towards used EV leasing has been driven by affordability concerns. Thom Groot, CEO of The Electric Car Scheme, notes that consumers are increasingly seeking affordable options for electric vehicles.
However, there are still challenges to overcome. Currently, benefit-in-kind tax breaks are calculated based on a car’s value as new, rather than its market value when purchased secondhand. This means that used EV leasing customers may not receive the same level of tax benefits as those who buy or lease new vehicles.
Despite these hurdles, the numbers are compelling: used EV leasing has grown by 170% in the past year alone, with some companies reporting growth rates of up to 120%. Octopus Electric Vehicles recorded 122% year-on-year growth in secondhand leasing. Gurjeet Grewal, CEO of Octopus EV, notes that “used EVs are one of the best-value ways to go electric.”
As the used EV market continues to grow, it will be interesting to see whether consumers opt for affordable and convenient options or if governments and manufacturers respond with new policies or incentives. One thing is certain: the UK’s used EV market has arrived, and it’s changing how we think about car ownership.
With prices decreasing, options increasing, and convenience becoming more appealing, it’s time for governments, manufacturers, and consumers to take a closer look at what this shift means – and where it will lead us next. As the industry continues to evolve, one thing is clear: used EV leasing has the potential to revolutionize car ownership in the UK.
Reader Views
- MTMarcus T. · small-business owner
"The used EV leasing market is expanding rapidly in the UK, but let's not get ahead of ourselves - we need more charging points to match this growth. The article mentions affordability concerns driving demand, but what about accessibility? Without a reliable network of public chargers, many potential buyers will be left stranded. Until this infrastructure catches up with the market, secondhand EV leasing remains a viable option for those who can afford to wait and charge at home."
- TNThe Newsroom Desk · editorial
The surge in secondhand EV leasing is music to the ears of cash-strapped drivers, but let's not forget the elephant in the room: infrastructure. As more used electric cars hit the roads, how will our overstretched charging networks cope? We need a concerted effort from government and private providers to expand public charging points, ensuring that these affordable EV options don't become stranded assets. The UK's green agenda is admirable, but it won't be realized if we can't get the supporting infrastructure right.
- DHDr. Helen V. · economist
The UK's shift towards secondhand EV leasing is a welcome development, but we shouldn't lose sight of the underlying drivers of this trend: affordability concerns and supply chain dynamics. The article mentions rising petrol prices as a factor, but I believe government incentives for electric vehicles will play an increasingly important role in shaping consumer behavior. To truly unlock the potential of secondhand EV leasing, policymakers should consider aligning benefit-in-kind tax breaks with market values, rather than relying on outdated valuations that favor new vehicle purchases.