Electric vehicles (EVs) could save people up to £5,000 a year, but are currently financially inaccessible to most low income households, new research has found. New studies from the Environmental Defense Fund Europe and Green Alliance suggest EVs are now cheaper on a total cost of ownership basis compared with petrol and diesel cars. Yet the research also highlights significant barriers preventing low-income households from accessing the market. As a result EV sales are largely concentrated among higher income earners due to a combination of relatively high upfront costs and limited financing options. For example, zero per cent APR offerings are typically only available for conventional vehicles, the research found, making it harder to use finance packages to purchase EVs. Additionally, resale values for EVs are often disproportionately low, mainly due to a lack of historical data and car dealers’ unfamiliarity with selling second-hand EVs. As a result, the second-hand market for EVs is underdeveloped, further undermining the financial case for purchasing an EV, even when the technology can offer lower overall costs.
Business Green 11th Nov 2019 read more »