Electric cars costs remain ‘key barrier’ for drivers ditching petrol and diesel

A recent survey from Zuto found that 53 percent of people said they would consider buying an electric or hybrid vehicle in the next two to three years. 

The support for the uptake of electric vehicles is clear, with consumer demand potentially being at an all-time high this year.

So far this year, there have been 121,268 battery electric vehicles sold in the UK, with a further 50,000 plug-in hybrid electric vehicles and almost 100,000 hybrid electric vehicles.

Data from the Society of Motor Manufacturers and Traders (SMMT) shows that battery electric vehicles are continuing to command a larger market share year-on-year.

May also saw an uptick in new car registrations after dropping last year to just over 120,000 vehicles, but levels are still yet to return to pre-pandemic levels of between 180,000 and 200,000.

Simon Bayley, Managing Director at SMF (Specialist Motor Finance), spoke to Express.co.uk about the demand for electric cars and how this could change in the future. 

He said: “We have certainly noticed more interest from consumers, but in the non-prime sector, the comparable cost of financing an EV versus a petrol or diesel vehicle is still a key barrier for being able to switch to an EV.

“Nonetheless, we expect more customers to come to us over the next few years via our brokers, so we are always looking to grow our EV portfolio as well as options to support this.”

In previous years, there have been major delays in getting new vehicles because of a distinct shortage of semiconductors, aided in part by the Coronavirus pandemic.

This seriously hampered the development of new cars, particularly electric cars, which contain more electronics and technology.

Joanne Robinson, director of lenders at Zuto, highlighted the impact of the cost of living crisis and how motoring had become more expensive for many motorists. 

Speaking to Express.co.uk, she said: “For example, more customers are now inquiring about whether interest rates are fixed, or are subject to increase, throughout the duration of their agreement – to safeguard themselves from future financial risks.”

Previously, Joanne Robinson said the Government ban on the sale of new petrol and diesel cars in 2030 would motivate more drivers to switch to electric. 

While some will be switching for environmental reasons, a proportion of those who switch to electric will be doing so based on the lower running costs.

It is hoped that the second-hand electric car market will grow in the coming years, with fleets expected to play a major role by ensuring a steady flow of EVs is available for less than retail price.