Car finance and leasing firms have asked the Government for financial support after the huge depreciation of EV values has led to the companies losing “hundreds of millions” of pounds – which is currently being passed onto consumers in the form of higher interest rates and car financing costs.
The British Vehicle Rental and Leasing Association (BVRLA) sent a letter on behalf of 25 of the UK’s largest leasing and fleet companies, stating that demand for used EVs is “struggling to keep pace” with supply, which the trade body says is expected to increase by 178 per cent over the next three years.
Such an imbalance means that EV residual values have tumbled by 50 per cent in the last two years and are expected to fall by a further 28 per cent by 2030, after which solely petrol and diesel-powered cars will no longer be allowed to be sold from new.
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