Dealerships are experiencing an acceleration in electric vehicle (EV) demand, according to Close Brothers Motor Finance (CBMF).
Customer enquiries, vehicle purchases, and finance applications have gathered pace over the past 12 months. The research suggests over eight in 10 dealerships stocking EVs have experienced an increase in interest across every stage of the buying journey.
John Cassidy, managing director at CBMF, said: “EV demand remains high, and on the rise in the UK, with our latest research highlighting that consumers are showing interest at every stage of the buying process. This news will be met with encouragement by dealers and the government alike, and demonstrates that the broader net zero transition is being embraced by the public.
“Whilst the signs remain positive, dealers continue to raise important areas of friction that are halting further adoption. Whilst there are undoubtedly real barriers to overcome, including challenges with affordability and the variety of vehicles on offer to consumers, there is also a wider understanding gap the industry needs to close.
“Nowhere is this more relevant than EV charging where it can be easy to underestimate the power of modern batteries. To underline our commitment to removing these friction points, earlier this year we announced a multi-year partnership with Pod to supply accessible home and forecourt charging solutions to our dealer network and their customers.”
Nearly nine in 10 dealers (86%) report an uptick in EV customer enquiries, while 84% confirm an increase in actual EV purchases over the past year.
Additionally, 86% of dealers reported increased interest in EV finance, while 89% have seen greater demand for home charging solutions.
Conditional Sale and Hire Purchase (HP) are currently the most popular finance products, each selected by 30% of dealerships, while personal Contract Purchase (PCP) follows (27%).
Concerns raised by prospective buyers focus on charging infrastructure and future vehicle values, with both cited by 34% of dealerships, followed by battery lifespan and insurance costs (31%).
Almost three in 10 dealers state that the upfront cost of purchasing an EV (30%) and range anxiety (30%) continue to deter potential buyers, while more than a quarter note that consumers still prefer traditional ICE.
