The new generation of drivers are more likely lease an electric car than buy one outright.
That’s according to a new study by GRIDSERVE that reveals two-thirds of 18–24-year-olds are likely to consider leasing for their next vehicle, compared to less than half of those aged over 50.
Lower monthly costs, the flexibility to switch vehicles after two to three years and minimal maintenance costs were cited as the top benefits of leasing.
The growth of ‘Gen Lease’ is not only in the car industry, with young people embracing a subscription economy for everything from healthcare, food, gaming, entertainment and fitness.
In fact, statistics from The Subscription Economy Index reports a 435 per cent growth in the last decade and a forecasted market size of $1.5 trillion (yes, trillion) by 2025.
While the phrase ‘Generation Rent’ relates to those priced out of the house buying market, it seems ‘Gen Lease’ actually represents a positive consumer choice.
The simplicity of leasing compared to ownership was also a key consideration, as well as the affordability that allows drivers to get behind the wheel of a brand new car for a fraction of the upfront investment that buying requires.
By opting for a lease, drivers only have to pay a small deposit with the rest spread of the cost of the vehicle spread over two to four years via affordable monthly payments.
At the end of the term, the car can simply be handed back with no worries about depreciation or the hassle of selling the vehicle that you would have if you owned it.
Costs can be reduced even further through a salary sacrifice scheme. This means trading in a portion of your pre-taxed annual salary in return for goods or services and allows you to make savings on income tax and National Insurance Contributions (NIC).
For a single monthly payment, deducted via your salary through work, you’ll get insurance, breakdown, maintenance – and if you lease via GRIDSERVE – three months of free charging on the GRIDSERVE Electric Highway.