J Sainsbury : UK drivers would pay over £16k to switch to an electric car

With recent government plans to halt the sale of new petrol, diesel and hybrid cars, set to be introduced in 2035, car owners could be considering becoming greener. Almost eight in 10 (77%) would contemplate purchasing an electric set of wheels⁽¹⁾, with 5% of already owning one, reveals research from Sainsbury's Bank Loans. ⁽³⁾

An analysis of Sainsbury's Bank data shows that in 2019 Personal Loan customers took out an average loan of £11,469 to purchase a vehicle.⁽²⁾ The study found however that UK drivers are willing to pay an average of £16,192 for an electric vehicle. This increases to £18,706 for men, although women would pay £13,186.⁽¹⁾

Despite drivers willing to invest money to go electric, the cost is a consideration for some. A third of would-be electric car owners are waiting for prices to fall before purchasing.⁽¹⁾

A large proportion of car owners consider themselves a friend of the environment (76%), with over two thirds (68%) aiming to be greener this year. The study showed one in eight (12%) drivers are planning to opt for an electric car because of the importance of being eco-conscious, indicating a great many of us are putting the environment at the heart of our decision making when it comes to motoring.

Charging costs

Running out of charge is a top concern, so drivers who have, or would consider buying an electric car will spend an average of £420 to add a charger to their property.⁽¹⁾

Almost one in 10 (9%) have already undertaken work at home to support a new electric car and charger - a further 52% would make changes to their home to add one. Of these, over one in three (34%) would look for an affordable charger. Nearly one in seven (13%) would think about adding a charger, though would also use public charging points. One in seven (14%) would forgo a home charger entirely and use a public charging network instead.⁽¹⁾

Jason King, Customer Director at Sainsbury's Bank, said: 'It is important to consider all financial aspects of owning a car when deciding what you can realistically spend on a new set of wheels. As well as planning for the initial outlay, take time to consider and budget for the wider costs like fuel, road tax if there is any, servicing, new tyres, motor insurance and any parking permit costs.

'There are lots of different finance options for buying a new car and it's worth researching which ones are best for you. A personal loan can be a cost effective way of paying for a car and allows you to manage regular payments, it also acts as cash in your wallet so it can put you in a great bargaining position when buying privately or from a dealership.'

Whether it is for an electric set of wheels or to add a car charger to a home as well, a loan from Sainsbury's Bank⁽²⁾ can help spread the cost. Loans are available to finance the cost of any vehicle up to the amount of £40,000. The Sainsbury's Bank website provides a useful calculator .⁽⁴⁾ to help work out what the monthly repayments could be for the different loan amounts and periods available.⁽⁵⁾

ENDS

For further information, please contact:

Sainsbury's Bank press office 0131 286 0010 / [e-mail]

Notes to editor:

This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.

⁽¹⁾Sainsbury's Bank commissioned research by Opinium of 2,011 UK adults between 21 and 24 January 2020.

⁽²⁾ Internal data provided by Sainsbury's Bank on the average amount spent by customers for Car Loans in 2019.

⁽³⁾ Sainsbury's Bank Car Loans help spread the cost of your purchase. Our loans are available to finance the cost of any car up to the amount of £40,000.

⁽⁴⁾ A loan from Sainsbury's Bank could be more affordable than you think. The Loans Calculator can help people to find a loan based on the amount borrowed and time this is borrowed for. All quotations given are for illustrative purposes only.

⁽⁵⁾ Loans subject to status. The rate that may be offered will depend on your personal circumstances, our credit assessment procedures and other related factors.

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