New Study Shows Leasing companies overcharge for electric cars
Leasing deals for battery electric vehicles (BEVs) are being overpriced, new analysis by T&E of the used car market finds. In Europe, leasing offers for BEVs are on average 57% more expensive than their equivalent petrol models. For example, leasing an electric Peugeot 208 costs approximately €574 a month, whilst the petrol Peugeot 208 is offered at €371.
Battery electric cars have similar resale value to diesel and petrol vehicles, the analysis finds. Leasing companies typically charge customers for the expected loss in value of a vehicle over the three to four year lease, so higher lease prices mean they expect BEVs to lose more of their value. But this is no longer the case.
The higher leasing prices for battery electric cars are unjustified. T&E analysis of 2.7 million used car prices reveals that BEVs do not depreciate more than other types of cars. Depreciation for BEVs in Europe’s biggest markets (Germany, France and the UK) is on par with diesel and petrol. In Spain there is still a difference but the gap is closing.
The study confirms that BEVs keep more of their value over time, reflecting consumer confidence in newer models with improved technology. Consumer demand for battery electric cars, new and used, is at an all time high.
Stef Cornelis, director of electric fleets at T&E said: “Today customers are being overcharged by leasing companies if they want to switch to a battery electric car. Leasing firms are too conservative when setting their monthly prices. Their rates reflect the state of play from 5 years ago. With this pricing strategy, their profits are obviously high and consumers are overpaying to go electric. At the same time, they are harming the BEV transition.”
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