New company car rules that save fleet car drivers thousands in tax are leading to a huge uptick in the number of EV leases
New figures show electric car leases boomed in autumn 2020 as preferential tax rates for company car drivers took effect.
EVs took a 15% share of the new car lease market, buoyed by new Benefit-in-Kind (BIK) tax incentives taking full effect.
Hybrids and plug-in hybrid leases also rocketed, taking a 36% share – overtaking diesel cars in the process.
Traditionally, diesel has been the go-to fuel for company car drivers, but that appears to quickly be changing.
Now, trade body the BVRLA is forecasting electrified cars may soon overtake regular petrol cars in the lease car sector.
Chief executive Gerry Keaney says the surge in EV leases is entirely down to the zero-rate BIK incentive.
“A massive 21% of new business contract hire car registrations were BEVs, once again demonstrating that the company car sector is driving the transition to zero emission motoring.”
CO2 emissions of lease cars are also dropping faster than the national average.
The average leased car now emits 105g/km, a significant 8% lower than the national average.
The new car lease sector includes both private and company car leases, and the growth of electrified cars suggests those switching to EVs are also actively taking up new ownership options too, outside of traditional outright purchase or PCP.