The motor finance provider is now offering its full range of hire purchase and personal contract purchase plans for electric cars with rates and conditions identical to petrol and diesel models.

Paul Burgess, CEO, said: “We’ve been monitoring the used electric car market closely over the last couple of years and, as everyone knows, it’s been something of a roller coaster ride with an emphasis on rapid downhills.

“Our view has been, like many others in the motor finance sector, that it is just too risky to get involved but lately, the data has begun to tell a different story and our conclusion is that the market is now sufficiently stable to get involved.

“Largely, we believe that the kind of dramatic shifts in values and prices that have plagued electric cars are probably over, and now is the right time to start to offer funding. Our move is very much a vote of confidence in the viability of the electric car market.

Paul pointed out that only something like one in 40 used car sales* were currently electric but that with large scale defleeting from the company car sector beginning to get underway, penetration was likely to increase rapidly.

“There’s a media narrative that used buyers are resisting electric cars and to some extent, that is no doubt true, but it is also true that used electric cars are now very keenly priced, represent excellent value, and are starting to look more appealing to more buyers.

“Of course, motor finance plays an important part in making these vehicles affordable. Because the electric car parc is relatively new, most models are more expensive than the average used car overall, and the kind of products we offer make them more viable to buy while potentially removing the residual value risk for consumers.

“Interestingly, our monthly Startline Used Car Tracker report for September shows that more than four out of five people expect to be driving an electric car by the end of this decade. If that sentiment even partially becomes fact, there will be a massive swing towards electrification.”

*SMMT Q2 Used Car Sales Report.