Alternative Fuelled Vehicle Total Cost of Ownership Costs Are Reducing

Great article on Fleet News highlighting the drop in Hybrid and Electric Car leasing prices reduction over 2018 which is good news for customers as these vehicles become more mainstream, more affordable and total cost of ownership declines. 

When viewed in a 2019 context this is even more important as the differential between Combustion Engine and Electric Vehicle Benefit in Kind (BIK) Rates Company Car BIK is only 15 months away. Want to know more about Electric and Hybrid and Electric Vehicles we have a guide Electric Vehicle Leasing Guide and LetsTalk have a number of special offer deals in the Hybrid and Electric space here

Fleet news

Leasing costs of battery electric vehicles (BEVs) have fallen throughout 2018 according to data experts at Cap HPI.

9.5% Average Drop

The study looked at five of the best-selling models in the UK and discovered that monthly lease costs had fallen by 9.5% on average.

The UK’s best-selling electric car, the Nissan Leaf saw monthly lease values fall by 6.6% between January and November 2018. Monthly lease prices for the Renault Zoe fell by 16% between June and November.

Between in the 12 months up to November 2018, the BMW i3 saw lease prices drop by 9.2%. The Volkswagen e-Golf saw prices drop 14% over the same period.

The Jaguar I-Pace saw the smallest price drop with a fall of only 1.7% since April 2018.

Mark Turnbull, global head of consulting at Cap HPI, said: “Over the next few years the new price of BEVs will come down as more affordable ‘mainstream’ model ranges are introduced by many manufacturers.

“Used buyer perception will continue to improve as battery ranges are extended and charging times are reduced, and electric car technology proves to be robust and reliable. So subject to adequate investment in charging infrastructure, and positive government legislation, I believe their residual values will be stronger.

“A pincer movement of lower new prices and improved RVs will mean less depreciation in pound terms, and cheaper lease rates will speed up the adoption of this technology.”

Hybrid Registrations up over 21%

Registration figures from the Society of Motor Manufacturers and Traders (SMMT) show that petrol electric hybrids remained the most popular choice in 2018, up 21.3% to 81,156 units.

Plug-in hybrids (PHEVs) also recorded a strong uplift (24.9%) over the year, though the figures suggest growth is slowing following the removal of the Government's plug-in car grant for these vehicles in October.

Demand for PHEVs grew almost 30% in the first 10 months, but year on year increases fell to 3.1% and 8.7% in November and December respectively.

Pure Electric Car Registrations up 13.8%

Pure electric cars, meanwhile, grew 13.8% in the year but, with just 15,474 registered, they still make up only 0.7% of the market. Given the reduction in government incentives, the pace of growth of plug-in cars is now falling significantly behind the EU average

Supply issues and the switch to WLTP have been blamed for the availability and lead times of many electric and plug-in hybrid cars in the last 12 months.

Source: Fleet News