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Zenith Vehicles, the UK’s largest fleet management company is combating the fall in used electric vehicle prices by offering extensions to car contracts to customers.
The group, whose profits for the year to March 2024 took an EV hit, said the biggest challenge it faced over the past 12 months has been the falling used car prices.
Zenith , which manages 92,514 cars and funds 77,396, launched the Project Volt BEV lease extension programme in the first quarter of 2024, an initiative to extend the leases on BEVs to address losses made on BEVs, targeting 3,000 lease contracts.
“Perhaps the biggest obstacle we, and the whole industry, have had to navigate this year is the weakening used car prices, and in particular a significant downturn in electric vehicle sales.
“At Zenith, we have looked to get ahead of the issues by proactively tackling them head on.
“We’ve put together a team who are focused solely on offering extensions to the contracts of our BEV fleet, giving drivers the opportunity to retain their vehicle for another year,” said Ian Hughes CEO – Zenith Corporate and Consumer divisions
“This gives drivers the security of their own outgoings, while enabling us to mitigate the impacts whilst the market corrects itself.
“This type of innovation and ability to move at pace is what makes our team stand out, and I continue to be impressed at the way in which we respond to these sorts of challenges, but we recognise there is still work to be done to meet the needs of our stakeholders.”
Zenith turnover for the year to March 2024 rose 16.1% to £788m while adjusted gross profit fell by 8.5% YoY to £134.4m.