Will SUVs dominate the electric car leasing market?

Will SUVs dominate the electric car leasing market?

The UK’s transition to the “ideal” vehicle has certainly evolved at a rapid rate. In the last 10 years, we have seen a continual evolution from small diesel hatchbacks to petrol SUVs and now to electrification in the form of PHEV and pure electric technology.

You have to offer some degree of sympathy to car manufacturers as they try to balance political and economic constraints alongside the wants and needs of their customer database. The shifting sands have not made it particularly easy and we, as a leasing broker, have done our best to move with the ever-moving landscape. At least we have some clarity now, in that moving forwards our primary fuel type will be electric.

Are petrol/diesel combustion engines dead?

This is a brave and sweeping statement but is one that is gathering momentum and is probably not without some credence. However, we do have to be mindful of how reactive the population can be; the anti-diesel propaganda led to a lot of misgivings and misunderstandings which has served to benefit no one. The focus for any automotive manufacturer or sales entity is to ensure that education is put at the forefront, so a customer can make an informed purchasing or leasing decision.

A growing market for SUV electric car leasing

Where manufactures still have the obvious conundrum is with the types of cars to produce. The UK has very much moved to a nation of SUV/crossovers/4x4s (this list of descriptions is certainly a non-exhaustive one). Much of this is down to the fact that customers need a universal car - one which fits the family in, has the upright driving position, has great specification but offers value.

Are multi-car family fleets a thing of the past?

With rising costs of living, increasing traffic and, not to mention, reduced mileage requirements under COVID, we are seeing customers change their habits. In particular, there is an acceptance that running a number of cars is both impractical and unaffordable.

The move to a one-size-fits-all solution is perhaps our future. Many of our existing customers are also reporting much lower mileage requirements due to the COVID situation - less customer visits, office closures and homeworking are making us all rethink our mileage and vehicle requirements. If this is to be a permanent approach, then the EV sector could truly benefit.

Obstacles to selling an electric car

"They don’t offer enough range." "They are too expensive." "They don’t look great." "Charge points are too expensive." 'I can’t be bothered charging all day." Without a doubt not every personal and business customer is an EV fan.

As it stands, they are not for everyone. However, as we progress towards 2030/40, the political changes will make everyone an electric car (or van) driver whether they like it or not! Many of the initial concerns about an EV can be easily answered and, in many cases, it is more about educating a customer so they can make a genuine like-for-like comparison.

It over-simplistic to say that a range is insufficient if you are now only covering 5-8,000 miles per annum. It isn’t true to say a car is too expensive until you have taken into consideration the running costs, fuel costs, servicing costs and insurance cots (whole of life). Many electric cars are now similar in looks to their petrol or diesel equivalents, so the aesthetic argument is losing traction.

Some of the resistance to EVs due to costs has come about because many of the popular manufacturers are initially launching landmark and prestigious vehicles. The EQC,  Audi E-Tron and  Jaguar I-Pace are not what we would refer to as affordable vehicles, but neither are their equivalent petrol/diesel alternatives.

A customer should not look at these cars and summarise that all EVs are going to expensive and unaffordable; manufacturers are using them to draw attention to what is possible.

They are also trying to capture the business contact hire market segment where directors of businesses are moving out of inefficient/polluting/expensive 4x4s into cleaner options which will save them a fortune on company car tax. These are aspirational vehicles and ones which will make many customers reconsider what is possible in the future. Build the demand and then provide a supply.

Future electric car options

Moving forwards over the next 1-3 years, the manufacturers will concentrating on “everyday” vehicles which both personal and business customers can readily afford. The VW ID, the Honda E, the Mercedes EQA and Seat El-Born are all examples of what will arrive.

We already have seen the e208 and Corsa-E make real headway in the small car segment. Do not think all efforts will be placed into the higher budget cars, as this will simply not allow for economies of scale. Indeed, the next few years will be an exciting time for us all, as we start the progression into a new way of motoring.

Mercedes-Benz EQC 400 300kW Sport 80kWh 5dr Auto (Pure Electric Vehicle)

In terms of the car shown, the Mercedes-Benz EQC 400 300kW Sport 80kWh 5dr Auto (Pure Electric Vehicle),  this is based on the following configuration:

• Graphite grey Metallic Paint
• Artico man-made leather - Black
• 19" 5 twin spoke alloy wheels

As standard the car includes privacy glass, active brake assist, navigation, blind spot assist, cruise control, active lane departure assist, easy-pack tailgate, traffic sign assist, DAB radio, multibeam LED lights, multi-function steering wheel, artico man-made leather, interior light package, keyless go package, seat comfort package, stowage package, parking package, mirror package, heated front seats and 19” alloys.

Want more from your EQC? Upgrade to an AMG Line specification and further add the Premium or Premium Plus packages for your perfect electric car.

On the technical side, company car and business users can note the P11d at £66,350.00 and CO2 at 0g/km. The 80kWh battery delivers a 250 miles range (WLTP), 408ps and 0-62 times of 5.1 seconds. Service intervals are every 12 months or 15,000 miles.

In terms of charging times, the EQC is limited to 7kW (AC) and this will take just over 12 hours for a full charge. In terms of rapid charge (DC), the EQC will can get 80% charge in circa 35/40 mins on a 100kw charger.

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