Maybe Car Leasing is The Quickest Route to an EV Parc?

Battery pack powered cars are a challenge for the insurance sector. More expensive to repair, often written-off due to potential fire risks after a collision, they are however much loved by politicians and regulators.

The arrival of cheaper Chinese car brands like Jaecoo, Omodo and BYD offers consumers an affordable route to own – or at least rent – a pure electric vehicle. Plus around 1 in 5 new cars are now given away on the Motability benefits scheme, which is another opportunity for the insurance sector to underwrite cover on EV drivers – some of whom have alcohol or drug convictions – and study the claims data over the next 3-5 years. Motability schemes often insure up to 3 drivers on one car as well, so it’s a chance to stack data and use telematics to assess risk per driver, per mile, then divide incidents by location, time of day, speed etc.

Here’s the word from a Car Leasing sector specialist;

Mike Thompson, Chief Operating Officer at Leasing Options, comments on recently released data from the SMMT’s Automotive Sustainability Report, and how the leasing market is contributing to EV growth:

“The latest SMMT report shows real progress in making the UK car industry greener, emissions from manufacturing are down by half since 1999, and UK investment in EVs and clean energy is seriously ramping up, as the industry aims to meet the Zero Vehicle Emission (ZEV) mandate by 2035. It’s encouraging to see this level of commitment, and it sets the stage for getting more electric vehicles, both cars and vans, into the hands of drivers.

“For us in the leasing sector, this growing supply is a big opportunity. Leasing is already the go-to way for many people and businesses to make the switch to electric; it removes the upfront cost of investment and the risk from depreciation of electric vehicles. To maintain this momentum, continued and stable government investment in charging infrastructure and clear EV incentives are vital. With these in place, leasing will remain a key driver in accelerating the UK’s transition to electric vehicles.”

“At the same time, infrastructure plays a crucial role in supporting this transition. Our recent research shows that cities like Coventry and London are leading the way for EV charger infrastructure; however, with the government’s Local Vehicle Infrastructure (LEVI) fund, this year is set to see a rapid expansion in cities across the UK for EV charger networks. For both car and van drivers, reliable and accessible charging is essential to keep vehicles on the road and meet daily demands; therefore, it’s no surprise that the first half of this year has seen Battery Electric Vehicle (BEV) share hit 21.6% in the UK. We expect to see enquiries for EV vehicles increase across the year, as more businesses and consumers make the switch towards electric.”