T&E Analysis: Leasing Companies Could Boost the Used EV Market

If the leasing sector transitions to electric cars faster starting in 2024, an additional 4.5 million affordable electric cars could be available on the used car market in Germany by 2035. This is the result of a new study by the European environmental umbrella organization Transport & Environment (T&E). This would result in an increase of around 50 percent compared to the current electrification rate. If it remains the same, all newly registered fully electric cars from 2024 onward would only lead to 9.3 million electric cars on the used car market in Germany by 2035.

If the leasing sector accelerates, it would be 13.9 million electric cars in the same period. The leasing sector is thus a crucial supplier for the used car market. Four out of ten cars that come onto the used car market in the EU each year come from leasing. Therefore, the NGO is calling on the seven largest European leasing companies to commit to no longer offering cars with fossil fuels from 2028 onwards, but only battery electric vehicles (BEVs). The sector as a whole should do this by 2030, according to the appeal.

Seven out of ten buy a used car

Today, almost seven out of ten German drivers buy their cars second-hand - EU-wide it's even eight out of ten, according to the analysis. Approximately 90 percent of lower and middle-income groups purchase their cars on the used car market. Even among higher-income groups, the share is still high at 62 percent, according to T&E. Used electric cars have significantly lower operating costs than combustion engines, as a study by the European Consumer Organization BEUC showed. Households in Germany can save almost 7,700 euros over a period of seven years if they buy an electric car instead of a petrol one. Therefore, a steady supply of electric cars on the used car market is important for households looking to save costs, according to T&E.

"If Germany wants to achieve its climate targets and have 15 million electric cars on the road by the end of the decade, we need to strengthen the supply of affordable electric cars on the used car market. Only then can most people in Germany truly afford an electric car," argues Friederike Piper, E-Mobility Officer at T&E Germany.