A new YouGov study reveals that 22% of drivers without an electric vehicle (EV) are unaware they can lease one. The research, commissioned by Gateway2Lease, highlights a gap in knowledge about cost-effective EV ownership. This lack of awareness is particularly significant given the rising concerns over running costs and the government’s 2030 ban on new petrol and diesel car sales, which is pushing more drivers to consider electric alternatives.
The survey of over 2,000 participants found that drivers aged 35 and above, along with women, are less likely to know about EV leasing. 59% of unaware respondents were female, compared to 40% male. This disparity suggests that targeted education campaigns may be necessary to reach these demographics, especially as women often make up a significant portion of car buyers and older drivers may be more hesitant to adopt new technologies.
Misconceptions About Upfront Costs
Even among those aware of EV leasing, 28% mistakenly believe the upfront cost is similar to buying. Only 34% know leasing can have a lower upfront cost. This misunderstanding could deter potential EV adopters, as the perception of high initial expenses remains a significant barrier. Kelly Marshall, Managing Director of Gateway2Lease, emphasizes that leasing eliminates the need for a substantial down payment, making EVs more accessible to a broader audience.
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Payments are spread throughout the lease term, helping consumers budget for a new car.” This flexibility is particularly appealing in an economic climate where many are seeking ways to manage expenses more effectively.
Financial Benefits of Leasing
Leasing an EV can be cheaper than financing a purchase, especially when considering the total cost of ownership. It also eliminates concerns about depreciation, as the leasing company assumes the risk. This is a critical advantage, as EVs have historically faced uncertainty in resale value due to rapidly evolving technology and consumer perceptions.
Employees with access to salary sacrifice schemes can save on income tax and national insurance, as the lease cost is deducted from their salary before tax. This arrangement can result in savings of hundreds of pounds annually, depending on the individual’s tax bracket and the cost of the lease. Marshall notes a 48% increase in employees choosing EVs through salary sacrifice compared to last year, as awareness of tax advantages grows. This trend shows the growing appeal of EVs as a financially savvy choice for both employers and employees.
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Government Incentives and Savings
The UK government’s Electric Car Grant offers discounts of up to £3,750 on over 60 new EVs, reducing lease costs. This grant significantly lowers the barrier to entry for many drivers, making EVs more competitive with traditional vehicles. Additionally, EV drivers avoid charges in London’s Ultra Low Emission Zone (ULEZ) and other Clean Air Zones (CAZs), which can save hundreds of pounds annually for frequent urban drivers.
Real-World Savings: A Case Study
Laurina Moody, a 63-year-old author and wedding celebrant from Faversham, Kent, leases a Suzuki e-Vitara through Gateway2Lease. She estimates her running costs are a third of what they were with her previous petrol Mazda CX-3. “There are lots of benefits from leasing, particularly leasing an electric car,” says Laurina. “I don’t have to think beyond the length of the lease or worry about depreciation or battery life.” This peace of mind is a significant advantage, especially for those who prefer not to deal with the complexities of car ownership.
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