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Startline’s decision to begin providing used EV funding for the first time is a “vote of confidence” in the stability of the market.
It is now offering its full range of hire purchase and personal contract purchase plans for EVs with rates and conditions identical to ICE models.
Paul Burgess, CEO, said: “We’ve been monitoring the used electric car market closely over the last couple of years and, as everyone knows, it’s been something of a roller coaster ride with an emphasis on rapid downhills.
“Our view has been, like many others in the motor finance sector, that it is just too risky to get involved but lately, the data has begun to tell a different story and our conclusion is that the market is now sufficiently stable to get involved.
“Largely, we believe that the kind of dramatic shifts in values and prices that have plagued electric cars are probably over, and now is the right time to start to offer funding. Our move is very much a vote of confidence in the viability of the electric car market.”
One in 40 used car sales are currently electric but large scale defleeting from the company car sector is underway.
Burgess said: “Of course, motor finance plays an important part in making these vehicles affordable. Because the electric car parc is relatively new, most models are more expensive than the average used car overall, and the kind of products we offer make them more viable to buy while potentially removing the residual value risk for consumers.
“Interestingly, our monthly Startline Used Car Tracker report for September shows that more than four out of five people expect to be driving an electric car by the end of this decade. If that sentiment even partially becomes fact, there will be a massive swing towards electrification.”