Electric vehicle (EV) leasing companies are using outdated prices to overcharge customers far higher than true market value, according to new research.
Leasing a battery EV is 57% more expensive than an equivalent petrol-powered model in Europe, despite both now depreciating at similar rates, according to a report from campaigner Transport & Environment (T&E) that analysed prices of 2.7mln used vehicles.
“Customers are being overcharged by leasing companies if they want to switch to a battery electric car,” T&E electric fleet director Stef Cornelis commented.
With leasing rates being set based on conditions from five years ago, despite depreciation largely now being the same across the board in the UK, Germany and France, Cornelis said the leasing companies' profits “are obviously high and consumers are overpaying to go electric. At the same time, they are harming the BEV transition.”
Leasing companies are often owned by banks and car manufacturers, such as Lloyds Banking Group PLC (LSE:LLOY)'s Lex Autolease, Société Générale' ALD, BNP Paribas with Arval, Volkswagen's VW Financial Services, and Mercedes-Benz's Athlon.
An electric Volkswagen ID.3 would cost around £605 a month, compared to a similar petrol-burning Golf at £376, T&E showed.
T&E called on leasing companies, to set targets to stock fully electric fleets, suggesting they had an “outsized role to play” in the green transition.
Leasers accounted for 22% of new car registrations in Europe last year, yet none have committed to going fully electric, it said.
Cornelis added: “Unless they rapidly accelerate their electrification plans, we will struggle to supply a second-hand market that will make battery EVs affordable.”