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There is an increasing divide between company cars and private motorists with regards to EV demand, according to the BVRLA’s latest Leasing Outlook.
The 3.6% growth in the last 12 months is offset by the divergence between corporate and personal demand. The leasing fleet has moved further towards EVs. Therefore, EV demand in the used market needs to keep up to avoid residual values spiralling.
Toby Poston, BVRLA director of corporate affairs, said: “The current trajectory of the transition to EVs is increasingly one of the haves and the have-nots.
“Phase-out targets and sales mandates are beginning to force the industry’s hand but will not succeed in isolation.
“Where incentives have been present, registrations have followed. The sectors currently benefitting from such support cannot bear the weight of the full transition alone.
“As the divergence between corporate and new and used private demand grows, the financial risk associated with bearing that risk becomes unsustainable.”
The leasing sector is adapting to a volatile market for second-hand EVs through used car leasing. Demand is up 7.7% in the last quarter alone as the idea of not personally taking the risk on the residual value appeals to drivers.
Across all fuel types, business contract hire is up 7.5% year on year, while personal contract hire has dropped by 11.3%. Salary Sacrifice is up 63% year on year and the overwhelming majority of those registrations involve EVs.